S3165119th CongressWALLET

True Shutdown Fairness Act

Sponsored By: Senator Sen. Van Hollen, Chris [D-MD]

Introduced

Summary

Ensures pay continuity for federal employees during an appropriations lapse. This bill would appropriate funds for fiscal year 2026 to keep pay, allowances, benefits, and certain pay differentials flowing for defined "covered individuals" if a lapse in appropriations begins on October 1, 2025.

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  • Federal employees and service members: Would provide funding so covered federal employees, armed forces on active duty, and reserve components performing service continue to receive pay, allowances, and benefits during the covered lapse.
  • Contractors and contract employees: Would authorize price adjustments so contractors can be reimbursed for reasonable costs from the lapse, including maintaining compensation for furloughed or non-working contractor staff and restoring paid leave, with contractors required to show evidence after agency consultation with the Administrator of the Office of Federal Procurement Policy.
  • Agency operations and limits: Would make appropriated funds available until a defined "termination date" tied to later appropriations, and would limit reductions in force and excessive administrative leave while preserving voluntary separation payments under 5 U.S.C. 3523.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Keep pay and benefits flowing

If enacted, the bill would appropriate funds starting October 1, 2025 for FY2026 to pay covered workers. Agencies would get “such sums as are necessary.” Covered individuals include federal employees, contract staff, active duty members, and reservists on duty. The funds and authority would be available until the Act’s termination date. Expenditures would later be charged to the applicable agency appropriation when Congress enacts that funding.

Protect jobs and limit long leave

If enacted, the bill would bar agencies from proposing or carrying out permanent job cuts during a covered lapse. It would also stop agencies from placing an employee on administrative leave for more than 10 work days in a calendar year while the lapse lasts. The bill would still allow voluntary separation payments under current law (5 U.S.C. 3523).

Contractor payback for shutdown costs

If enacted, the bill would require agency heads to adjust contract prices when contractors stopped or delayed work because of the lapse. Agencies would reimburse reasonable costs actually incurred. Reimbursable costs include standard pay for furloughed or nonworking contractor employees, lower-hours pay, and costs to restore paid leave used during the lapse. Contractors must give evidence of costs after agency consultation with the Office of Federal Procurement Policy.

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Sponsors & CoSponsors

Sponsor

Sen. Van Hollen, Chris [D-MD]

MD • D

Cosponsors

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 11/7/2025

  • Sen. Kaine, Tim [D-VA]

    VA • D

    Sponsored 11/18/2025

Roll Call Votes

No roll call votes available for this bill.

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