S3168119th CongressWALLET

Shutdown Fairness Act

Sponsored By: Senator Ron Johnson

In Committee

Summary

Guarantees pay and allowances for federal employees, contractor staff, and military personnel during a lapse in regular appropriations. It defines who counts as covered and ties payments to each person's normal pay, allowances, and benefits.

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  • Federal employees: Individuals who were employed or in an agency relationship before a lapse and who are required to work or are excepted from furlough are eligible for "standard employee compensation," which covers basic pay, allowances, pay differentials, benefits, and regular payments.
  • Contract employees and covered individual contractors: Contractors at any tier who employed or had made offers to workers before the lapse can be paid through their contractors so those workers receive standard compensation while required to work during the lapse.
  • Members of the Armed Forces and reservists: Service members on active duty or performing inactive duty training who were in service before the lapse are eligible for standard compensation during the period of lapse.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Who gets pay during a shutdown

If enacted, the bill would define who can receive pay when an agency has no appropriations. An "agency" would include executive, legislative, and judicial authorities and certain District of Columbia public employers. Contractors at any tier could be covered if they support a covered employee, are required to work during the lapse as the agency head decides, and were employed or had accepted an offer before the day the lapse began. Covered employees would include agency employees, covered individual contractors, and members of the Armed Forces who were employed, had accepted an offer, or enlisted on or before the day before the lapse. "Standard employee compensation" would mean regular pay, allowances, pay differentials, benefits, and other regularly payable items used to compute pay.

When shutdown pay would be paid

If enacted, agencies would have to provide retroactive pay for the period from October 1, 2025 through the date of enactment as soon as practicable and no later than 7 days after enactment. Those retroactive payments would be made without regard to scheduled pay dates and even if the person was furloughed. For any lapse that begins on or after enactment, compensation for covered employees would be paid on their regularly scheduled pay dates.

Treasury to pay shutdown wages

If enacted, the bill would appropriate from the Treasury such sums as are necessary beginning in fiscal year 2026 and each year after to provide standard employee compensation during an appropriations lapse and to give money to contractors so they can pay covered contract employees. The money could be used only for those compensation payments and may not duplicate payments a covered person gets from other sources. Any expenditures made under this appropriation would later be charged to the applicable appropriation, fund, or authorization when a later Act enacts that appropriation.

Employee and contractor duties during lapse

If enacted, payments under the bill would follow the same authorities, conditions, and limits that applied under the appropriation law immediately before the lapse. For fiscal year 2026, payments would be subject to the Full-Year Continuing Appropriations and Extensions Act, 2025 (Public Law 119-4). For fiscal year 2027 and later, payments would follow the requirements that applied under the appropriation Act in effect immediately before the lapse. Covered employees and covered contract employees would be required to perform their usual duties to the maximum extent practicable during a lapse. The bill would not let agencies or employees incur obligations not explicitly authorized by this Act.

Sponsors & CoSponsors

Sponsor

Ron Johnson

WI • R

Cosponsors

  • Sen. Cotton, Tom [R-AR]

    AR • R

    Sponsored 11/9/2025

  • Sen. Crapo, Mike [R-ID]

    ID • R

    Sponsored 11/9/2025

  • Sen. Lankford, James [R-OK]

    OK • R

    Sponsored 11/9/2025

  • Sen. Risch, James E. [R-ID]

    ID • R

    Sponsored 11/9/2025

  • Dan Sullivan

    AK • R

    Sponsored 11/9/2025

  • Sen. Scott, Rick [R-FL]

    FL • R

    Sponsored 11/9/2025

  • Sen. Paul, Rand [R-KY]

    KY • R

    Sponsored 11/19/2025

  • Sen. Lummis, Cynthia M. [R-WY]

    WY • R

    Sponsored 4/29/2026

Roll Call Votes

No roll call votes available for this bill.

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