Politics

Trump Directs Pentagon to Fund Military Paychecks: How the Move Averts Immediate Crisis

Trump ordered military pay using alternative funds amid shutdown, easing anxieties for families.

October 12, 2025, 10:02 AM

High aerial view of the Pentagon building in Washington DC, showing its five concentric rings, interior courtyard, and surrounding highways.

This panoramic aerial photograph captures the massive, symmetrical structure of the Pentagon, the headquarters of the U.S. Department of Defense, surrounded by complex infrastructure. By Ivan Cholakov / Shutterstock.com.

Executive Summary

President Donald Trump directed the Defense Department to utilize alternative funds to ensure military paychecks continue next week, aiming to alleviate strain for military families amid the government shutdown.

The funds for military paychecks will be reallocated from the Pentagon’s research and development budget, with troops expected to be paid by October 15.

While military pay is secured, the shutdown continues to cause significant economic anxiety for civilian federal employees, government contractors, and local businesses in federal-heavy regions like Hampton Roads, as the broader impasse remains unresolved.

The Story So Far

The current government shutdown has created significant economic anxiety and hardship for federal employees and military families, particularly in regions heavily reliant on federal spending like Norfolk, Virginia, where a large portion of the local economy is tied to the federal government. This situation, which had already halted pay for civilian federal employees and threatened to do the same for active-duty military, became a notable political liability, prompting President Trump to direct the Defense Department to reallocate funds to ensure military paychecks.

Why This Matters

President Trump’s directive to reallocate funds ensures military personnel will continue to receive paychecks, providing crucial immediate relief for active-duty families and addressing a significant political liability. However, this action does not resolve the broader government shutdown, meaning civilian federal employees and government contractors still face ongoing financial hardship, which continues to exacerbate economic strain in federal-dependent regions like Hampton Roads, Virginia.

Who Thinks What?

President Donald Trump’s administration believes that reallocating funds from the Pentagon’s research and development budget is an effective solution to ensure military paychecks continue, aiming to alleviate strain on military families and address a political liability.

Military families, federal civilian employees, and local businesses are experiencing significant economic anxiety and hardship due to the government shutdown, leading to reliance on food banks, cutting expenses, and fears of declining customer traffic, despite the directive for military pay.

Economists, such as Bob McNab, view the shutdown as having a profound local economic impact, estimating at least $1 billion in economic pain in regions heavily tied to federal spending, particularly if the shutdown is prolonged and government contractors do not receive back pay.

President Donald Trump has directed the Defense Department to utilize alternative funds to ensure military paychecks continue next week, aiming to alleviate mounting strain and uncertainty for military families amid a government shutdown. The move comes as the shutdown intensified economic anxieties, particularly in regions like Norfolk, Virginia, where a significant federal presence underpins the local economy.

The looming threat of missed paychecks had become a notable political liability. Civilian federal employees had already seen their pay halted last Friday, with 1.3 million active-duty military members slated to follow this week if no action was taken. The administration stated on Saturday that it had “identified funds” to pay troops by October 15.

These funds for military paychecks will be reallocated from the Pentagon’s research and development budget, which typically has a two-year availability, according to the White House Office of Management and Budget. A bipartisan group of lawmakers had previously pushed for a standalone measure to pay troops, but without success.

In southeastern Virginia, the Hampton Roads region, home to 85,000 active-duty military personnel, 58,000 federal civilian workers, and numerous government contractors, faces significant economic fallout. Residents like Bashtye Bailey, a Navy wife and veteran, had already begun cutting expenses and relying on food banks, anticipating a missed paycheck.

Bob McNab, an economics professor at Old Dominion University in Norfolk, highlighted the profound local impact, noting that roughly 40% of the region’s spending is directly or indirectly tied to the federal government. He estimated that a month-long shutdown could lead to at least $1 billion in economic pain, potentially far higher if government contractors do not receive back pay.

Small businesses in the area are also feeling the pinch. Richard Maigue and Maricen Corrales, owners of Kitchenfinity near Naval Station Norfolk, expressed concerns about a potential decline in customers if military personnel and federal employees face further financial hardship.

Earlier this month, President Trump visited the region, assuring sailors aboard the USS George H.W. Bush, “We will get our service members every last penny. Don’t worry about it.” Despite this promise and the subsequent order, anxiety persists among military families, with many recalling the stress of the 2018 shutdown.

Kady Frazier, married to a Navy technician, described the situation as “a real stressful struggle” as she awaited assistance at a mobile food bank. Mallory Rackling, communications director for the Food Bank of Southeast Virginia and the Eastern Shore, confirmed that demand for services significantly increased during the 2018 shutdown and is expected to rise again if the current situation prolongs.

Ongoing Concerns

While President Trump’s directive offers immediate relief for military families, the broader economic impact on federal employees and contractors, coupled with the uncertainty of the shutdown’s duration, continues to fuel widespread concern. The measure addresses a critical aspect of the shutdown but does not resolve the underlying impasse that has halted other government operations.