HR7137-119

What This Bill Does

The Shutdown Fairness Act creates automatic funding during any lapse in regular appropriations beginning in fiscal year 2026. It covers employees of executive, legislative, and judicial agencies, District of Columbia public employer elements, active-duty Armed Forces members, reserve component members performing active service or inactive duty training, and employees who were furloughed, excepted, emergency workers, already employed, hired, enlisted, or appointed before the lapse began. Covered contractors are contractors that support agency employees and must perform during the lapse because the agency head determines an obligation is legally permissible. During a lapse, the bill appropriates such sums as necessary from Treasury funds not otherwise appropriated for standard employee compensation and contractor payments. For an ongoing lapse on enactment, pay is due as soon as practicable and no later than seven days; future lapses use regular pay dates. The authority ends when regular or continuing appropriations are enacted, spending is charged back to later appropriations, and funds may be used only for covered pay or contractor payments.

Who Benefits and How

Federal employees, furloughed workers, excepted workers, emergency workers, active-duty service members, reserve members, covered contractor employees, and District of Columbia public employees benefit because pay continues during shutdowns instead of waiting for back pay. Agencies benefit from clearer authority to keep required support contractors paid for work they must perform.

Who Bears the Burden and How

Agency heads, payroll offices, contracting officers, appropriations staff, and Treasury payment systems must identify covered employees and contractors, issue payments within seven days or on regular pay dates, prevent duplicate payments, track later charge-backs to enacted appropriations, and ensure funds are not transferred or reprogrammed for other purposes. Federal taxpayers fund compensation and contractor payments during lapses before normal appropriations are enacted.

Key Provisions

• Appropriates such sums as necessary for covered employee compensation during appropriations lapses.
• Provides shutdown pay for active-duty Armed Forces members and reserve component members performing covered service.
• Provides payment for covered contractors required to work during a lapse under legally permissible obligations.
• Requires payment within seven days for an ongoing lapse on enactment and regular pay dates for later lapses.
• Limits funds to covered compensation and contractor payments and requires later charge-back to enacted appropriations.