Pending Legal Action: USPHS and NOAA Retirees Left Without Pay During Government Shutdown

Washington, D.C. — October 15, 2025

The Law Offices of David P. Sheldon, PLLC, is examining the legal basis for a class action lawsuit on behalf of retired officers and annuitants of the U.S. Public Health Service (USPHS) and the National Oceanic and Atmospheric Administration (NOAA) who may not receive their retirement pay during the ongoing federal government shutdown.

While most uniformed service retirees—including those from the Department of Defense (“DoD”) and the Coast Guard—will continue to receive their earned retirement benefits through the Military Retirement Fund (“MRF”), USPHS and NOAA retirees are excluded from that system. Their payments are instead drawn from agency-specific discretionary appropriations, which halt when Congress fails to pass a continuing resolution or budget.

This funding disparity leaves USPHS and NOAA retirees vulnerable to the political process, despite their equal standing as uniformed service members under federal law (10 U.S.C. § 101(a)(4)). The claims would potentially be subject to review in the U.S. Court of Federal Claims and would challenge this inequity and seek both immediate restoration of withheld pay. and a declaratory judgment establishing that these retirees’ benefits are mandatory entitlements protected from budgetary suspension.

“No retiree should lose pay simply because their service fell under a different department seal,” said David P. Sheldon, founding attorney. “These men and women served under the flag of the United States just like their DoD and Coast Guard counterparts—and the government’s inaction has real human consequences.”

Who Is Affected

• Included: Retirees and annuitants of the USPHS and NOAA Commissioned Corps who did not receive their scheduled retirement or survivor payments during the shutdown period.
• Not Included: Retirees of the Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard, whose payments are statutorily protected through the MRF.
• Potential Expansion: Federal civilian retirees may be affected indirectly but are not part of this pending action.

Legal Recourse for Affected Retirees

Eligible retirees may pursue the following avenues of relief:

1. Class Participation:
   Retirees who have experienced nonpayment of retirement benefits may seek inclusion in the pending class action once filed. The case will argue that USPHS and NOAA retirement pay statutes (42 U.S.C. § 212, § 213a; 33 U.S.C. § 853) are money-mandating under the Tucker Act (28 U.S.C. § 1491), giving the U.S. Court of Federal Claims jurisdiction to order payment and interest.
2. Administrative Inquiry:
   Retirees should retain all correspondence and payment statements from the Coast Guard Pay & Personnel Center (PPC), which processes payments for USPHS and NOAA retirees. Written confirmation of nonpayment or delayed disbursement strengthens future claims.
3. Individual Filing (Optional):
   Some retirees may choose to file an individual claim or mandamus petition if they experience unique financial hardship or are excluded from the class definition. Such cases may also assert violations of the Anti-Deficiency Act and Equal Protection principles under the Fifth Amendment’s Due Process Clause.
4. Legislative Advocacy:
   In parallel, affected retirees may contact congressional representatives to urge the adoption of a statutory parity amendment—similar to the FY 2021 NDAA inclusion of the Coast Guard in the MRF—that would permanently protect retirement pay for USPHS and NOAA retirees.

Legal Background

The Anti-Deficiency Act (31 U.S.C. § 1341) prohibits the government from obligating funds not yet appropriated. However, mandatory entitlements such as Social Security and MRF-based military pensions continue during shutdowns because Congress has permanently appropriated those funds.
USPHS and NOAA retirees fall into a legal gap: their authorizing statutes require that pay “shall be paid,” but Congress never created a corresponding permanent appropriation. As a result, the agencies’ payment authority vanishes when appropriations lapse—despite statutory entitlement.

The forthcoming lawsuit will argue that “shall be paid” imposes a nondiscretionary duty, making retirement pay an obligation of the United States independent of annual funding. The government’s failure to pay, therefore, constitutes an unlawful withholding of compensation earned through federal service.

Statement from Counsel

“Congress has recognized eight uniformed services, not five branches and three exceptions,” said Annie Morgan, senior military defense counsel. “Parity must mean protection. If one uniformed retiree is paid during a shutdown, all should be.”

How to Get Involved

Retirees or survivors of the USPHS or NOAA Commissioned Corps who have missed or delayed payments due to the shutdown are encouraged to contact The Law Offices of David P. Sheldon, PLLC at militarydefense.com for updates on the case and guidance on preserving their claims.

Disclaimer

This post is for informational purposes only. It does not constitute legal advice, nor does it create an attorney-client relationship. The lawsuit described herein has not yet been filed. Individuals should seek personalized legal guidance regarding their eligibility and options.