Trump administration threatens no back pay for federal workers in shutdown

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By LISA MASCARO, AP Congressional Correspondent

WASHINGTON (AP) — President Donald Trump’s administration is warning Tuesday of no guaranteed back pay for federal workers during a government shutdown, reversing what has been longstanding policy for some 750,000 furloughed employees, according to a memo being circulated by the White House.

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Trump signed legislation into law after the longest government shutdown in 2019 that ensures federal workers receive back pay during any federal funding lapse. But in the new memo, his Office of Management and Budget says back pay must be provided by Congress, if it chooses to do so, as part of any bill to fund government.

The move by the Republican administration was widely seen as a strongarm tactic — a way to pressure lawmakers to reopen government, now in the seventh day of a federal shutdown.

“There are some people that don’t deserve to be taken care of, and we’ll take care of them in a different way,” Trump said during an event at the White House.

He said back pay “depends on who we’re talking about.”

Refusing retroactive pay to the workers, some of whom must remain on the job as essential employees, would be a stark departure from norms and practices, and almost certainly would be met with legal action.

While federal workers — as well as service members of the military — have often missed paychecks during past shutdowns, they are most always reimbursed once government reopens.

“That should turn up the urgency and the necessity of the Democrats doing the right thing here,” said House Speaker Mike Johnson at a press conference at the Capitol.

Johnson, a lawyer, said he hadn’t fully read the memo but “there are some legal analysts who are saying” that it may not be necessary or appropriate to repay the federal workers.

But Democratic Sen. Patty Murray of Washington blasted the Trump administration as defying the law.

“Another baseless attempt to try and scare & intimidate workers by an administration run by crooks and cowards,” said Murray, who is the ranking lawmaker on the Senate Appropriations Committee. “The letter of the law is as plain as can be — federal workers, including furloughed workers, are entitled to their backpay following a shutdown.”

In a single-page memo from Trump’s Office of Management and Budget under Russ Vought, first reported by Axios, the office’s general counsel seeks to lay out a legal rationale for no backpay of federal workers.

The memo explains that while the Government Employee Fair Treatment Act of 2019 says workers shall be paid after federal funding is restored, it argues the action is not self-executing. Instead, the memo says, repaying the federal workers would have to be part of legislation to reopen the government.

The OMB analysis draws on language familiar to budget experts by suggesting that the 2019 bill created an authorization to pay the federal workers, but not the actual appropriation.

Congress, it says, is able to decide whether it wants to pay the workers or not.

For now, Congress remains at a standstill, with neither side — nor the White House — appearing willing to budge. Democrats are fighting for health care funds to prevent a lapse in federal subsidies that threaten to send insurance rates skyrocketing. Republicans say the issue can be dealt with later.

Associated Press writers Will Weissert, Kevin Freking, Joey Cappelletti and Mary Clare Jalonick contributed to this report.

St. Paul: 24-hour conversation about homelessness begins Thursday

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The Union Gospel Mission Twin Cities will host a 24-hour live conversation on homelessness, addiction and mental health later this week.

The event, called Conversations on a Bench, is happening at ministries nationwide and will end on World Homeless Day, observed annually on Oct. 10.

Pam Stegora Axberg, the organization’s CEO, will participate in 40 conversations from 2 p.m. Thursday to 2 p.m. Friday on a bench outside the organization’s men’s campus in St. Paul.

Participants will include Ramsey County Attorney John Choi, Ramsey County Commissioner Rena Moran and Melvin Carter, the mayor of St. Paul. Officials from the Minnesota Association for Children’s Mental Health, the Minnesota Wild and Nourish MN, a food bank in St. Paul, also are scheduled to participate.

The conversations will focus on solutions to homelessness, addressing related issues such as addiction and mental health, while highlighting the roles of public, private and nonprofit organizations in driving change.

People can watch a livestream of the conversations on the organization’s Youtube channel and Facebook page.

More than 9,000 people were homeless on a single night in January 2024, according to the Minnesota Interagency Council on Homelessness. The Point-in-Time count is an annual nationwide count of people experiencing sheltered and unsheltered homelessness on a single night in January.

For more information go to ugmtc.org.

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What will the Wild’s lines look like to open the season?

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On the eve of the regular season, one constant of a John Hynes‘ training camp remains true in the coach’s second season at the helm: It’s hard.

To a man, Wild players note on-ice sessions are serious, focused and strenuous. The same goes for the off-ice work. It is not for those unwilling or unable to put in a full 60-minute effort every time their skates touch the ice.

A year ago, the results of that relentless prep were seen in October and November, as Minnesota blasted to one of the best starts in franchise history, at one point tallying 19 wins to just four regulation losses.

It didn’t last, as injuries piled up. By April, the Wild needed a last-minute rally in their final game to make the playoffs. Still, Minnesota showed what it could do at full strength.

On Monday, with his his full 23-man roster on the ice at TRIA Rink for the first time, Hynes reflected on the final roster cuts made to prep for the regular season opener.

“There was some tough decisions of who we would send down and who we would keep,” Hynes said, noting that several of the players who will start with the Iowa Wild had flashes in training camp practices and preseason games to state their case for NHL roster spots.

“We feel like this is the group we’ll start with and see where they go,” he said.

In the final tuneup practices before the regular season opens in St. Louis on Thursday, the forward lines have looked like this:

Top line: Marco Rossi centering with Kirill Kaprizov and Matt Boldy on wings.

Second line: Joel Eriksson Ek centering with Marcus Foligno and Vladimir Tarasenko on the wings.

Third line: Ryan Hartman centering with Yakov Trenin and Marcus Johansson on wings.

Fourth line: Nico Strum centering with some combination of Danila Yurov, Liam Ohgren and Vinnie Hinostroza on the wings.

Mats Zuccarello is injured to start the season. On Tuesday, the team placed Zuccarello and Nico Sturm on injured reserve and designated forwards Cameron Butler and Michael Milne and defenseman Stevie Leskovar as injured, non-roster players.

Hinostroza, who the Wild claimed off waivers from Nashville last February, will likely be the veteran wing on the fourth line, with either Yurov or Ohgren on the other side.

“I think Vinnie’s had a strong camp,” Hynes said. “He didn’t get as much action later in the games, but he does have experience, we know what he can do. With Ohgren and Yurov, we’re still working those guys in, and now that camp’s over, see what they look like in different positions.”

Defensively, the pairings have been:

-Jake Middleton with Brock Faber

-Zeev Buium with Jared Spurgeon

-Zach Bogosian with David Jiricek

Newly re-acquired Daemon Hunt and veteran Jonas Brodin – who is still making his way back from off-season surgery – will be the reserve defenseman at the season’s start. Hynes said they initially did not expect to have Brodin much in October, but he’s made good progress in practice.

“I’m sure they’re going to have to test his strength, meet with the doctor, and then maybe put him in a little bit more heavier contact,” Hynes said. “The fact that he’s doing what he’s doing is really encouraging.”

The goalie tandem of Filip Gustavsson and Jesper Wallstedt is set, with veteran Cal Petersen heading to his home state to tend the Iowa net. Like most Wild fans, Hynes smiled at the contract extension given to Gustavsson over the weekend, and the stability it means in the Minnesota crease.

“It’s nice that he’s got that confidence, and I think he’s earned it. He’s the guy for us,” Hynes said. “You can’t win without good goaltending, and the way that he played last year and the way that he looks now is going to be really important for us.”

Among those waiting in the wings in Iowa are defensemen Carson Lambos and Matt Kiersted and forwards Tyler Pitlick and Hunter Haight, all of whom had strong showings in training camp and were among the final cuts.

Veteran forward Brett Leason and veteran defenseman Jack Johnson both attended Wild camp on professional tryouts, but neither was offered a contract.

Similar to October 2024, the Wild will learn much about themselves while getting to know one another away from home.

After the opener in St. Louis, they play home games versus Columbus on Saturday and versus Los Angeles on Monday, Oct. 13. Then the Wild head out on a five-game road trip, during which they’ll visit the Stars, Capitals, Flyers, Rangers and Devils.

Briefly

The Wild’s “Skate It Forward” program — which was announced last season as an effort to promote growth in youth hockey participation in Minnesota, western Wisconsin and the Dakotas — announced its initial grant recipients for the 2025-26 season this week.

The 11 community hockey programs included are Anoka, Bloomington Jefferson, Delano, Langford Park (St. Paul), Minnesota Sled Hockey, Mounds View Irondale, Osseo-Maple Grove, St. Paul Capitals, Waseca, Willmar and Winona. For every first-year player under the age of eight that registers for hockey in those associations, the Skate It Forward program will provide a $250 grant to help encourage more young players to take up the game.

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Government shutdown threatens to stall the recovery in the IPO market

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By DAMIAN J. TROISE, AP Business Writer

NEW YORK (AP) — The U.S. government shutdown is waving a caution flag at private companies racing to make the move to the public market.

The market for initial public offerings has been on a years-long recovery after spiking inflation slammed the brakes on activity in 2022. The IPO market is already on track for its best year since 2021 with 163 deals and $31 billion in proceeds raised so far, according to Renaissance Capital.

Companies rely on the U.S. government, through the Securities and Exchange Commission, to review and approve IPO filings, while monitoring the ongoing process. The SEC is now operating with minimal staff, significantly delaying or halting those reviews and approvals.

Investors and companies are dealing with more than just technical issues. A prolonged government shutdown could sap confidence in the U.S. markets and economy. IPO activity typically remains strong through October, then slows in the U.S. during the final two months of the year.

“That’s always an end of the year factor,” said Samuel Kerr, head of global equity capital markets at Mergermarket.

Investors and companies had been mostly brushing off much of the uncertainty roiling the U.S. government and economy through the year, including an unpredictable trade policy, ongoing worries about inflation, a weakening job market and questions about Federal Reserve policy. Amid all that, the stock market has notched record after record and new companies keep joining the ranks.

The impasse in Washington, though, has brought a reminder of the challenges facing the market.

“It (the shutdown) reminds you that we’re not operating in normal times,” Kerr said.

Investors have been drawn to IPOs because stocks have looked pricey for a while, especially in the technology sector, leaving them looking for other ways to get into the market. IPOs have offered a way to do that. Many of the bigger IPOs in 2025 have been in growing technology fields, including cryptocurrency technology and artificial intelligence.

Circle Internet Group, the U.S.-based issuer of one of the most popular cryptocurrencies made its public debut in June for about $1.1 billion.

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Circle issues USDC, a stablecoin that can be traded at a 1-to-1 ratio for U.S. dollars, and EURC, which can similarly be traded for euros. It’s shares priced at $31, soared on the first day of trading and currently trade for around $152.

Cryptocurrency exchange Bullish raised about $1.1 billion in August. Cloud-computing company CoreWeave raised about $1.5 billion when it went public in March.

Klarna, the Swedish buy now, pay later company, entered the public market in September, raising $1.37 billion. That made it the largest IPO of the year, according to Renaissance Capital. The IPO priced at $40 and shares currently trade around $42.

Outside of the shutdown, market conditions remain ideal, said Bill Smith, CEO of Renaissance Capital, in a note to investors.

“The IPO market still has a bit of gas in the tank,” he said.