HR5572-119

What This Bill Does

The Help FEDS Act changes unemployment compensation treatment for excepted federal employees during shutdowns in fiscal years 2026 and 2027. State unemployment laws must allow excepted federal employees to apply for and receive unemployment compensation for weeks in which they perform emergency work during a lapse in appropriations and are not being paid. If an excepted employee later receives back pay under 31 U.S.C. 1341(c)(2) for a period covered by unemployment compensation, the employee must repay the state; unrepaid amounts are treated as overpayments and recovered under state law, with recovered money deposited into the state unemployment fund. Treasury must pay each state 100 percent of the unemployment compensation provided to excepted federal employees plus related administrative expenses, based on Labor Department certifications, using the Unemployment Trust Fund. The bill defines an excepted federal employee as an excepted employee during a lapse in appropriations who is not being paid because of the lapse.

Who Benefits and How

Excepted federal employees working during shutdowns benefit because they can receive unemployment compensation while unpaid in fiscal years 2026 or 2027. Federal employee families benefit from temporary income support during appropriations lapses. State unemployment funds benefit because Treasury reimburses 100 percent of covered compensation and administrative expenses. Federal workforce unions benefit from a concrete income-support mechanism for members required to work without regular pay.

Who Bears the Burden and How

State unemployment agencies must accept applications from covered excepted employees, pay benefits, recover repayments after back pay, and deposit recovered funds. Excepted federal employees must repay state unemployment compensation for periods later covered by federal back pay. Labor Department certification staff must certify reimbursement amounts to Treasury. Treasury payment staff must reimburse states from the Unemployment Trust Fund.

Key Provisions

• Requires state unemployment laws to cover excepted federal employees performing emergency work while unpaid during fiscal year 2026 or 2027 shutdowns.
• Requires employees to repay unemployment compensation after receiving federal back pay for the same period.
• Requires states to treat unrepaid amounts as recoverable overpayments and deposit recovered money into state unemployment funds.
• Provides Treasury reimbursement to states for 100 percent of covered compensation and administrative expenses using Labor certifications.
• Defines excepted federal employees for lapse-in-appropriations coverage.