Shutdown Fairness Act

In this section—

(1) the term agency —

(A) means each authority of the executive, legislative, or judicial branch of the Government of the United States; and

(B) includes each element of the District of Columbia public employer, as defined in section 1341(c) of title 31, United States Code;

(2) the term covered contractor means a contractor—

(A) with which an agency has a contract; and

(B) that, under the contract described in subparagraph (A)—

(i) provides support to an employee described in paragraph (3)(A); and

(ii) is required to perform work during a lapse in regular appropriations with respect to the agency to which the contractor provides support, as described in clause (i), based on a determination by the head of that agency that incurring an obligation to pay for that support in advance of available appropriations would be permissible under applicable law, including section 1341 of title 31, United States Code;

(3) the term covered employee —

(A) means each employee of an agency, without regard to whether, for any portion of the period beginning on October 1, 2025, and ending on the date of enactment of this Act—

(i) the head of that agency determined that the individual was an excepted employee or an employee performing emergency work; or

(ii) the individual was subject to furlough;

(B) includes—

(i) a member of the Armed Forces on active duty; and

(ii) a member of a reserve component who, during a lapse in regular appropriations with respect to the applicable agency, performs active service or inactive duty training; and

(C) only includes an individual described in subparagraph (A) or (B) who was an employee or member on, or had accepted an offer of employment with the agency or had enlisted in or accepted an appointment to the Armed Forces (including a reserve component) on or before, the day before the date on which the applicable lapse in regular appropriations began;

(4) the term lapse in regular appropriations, with respect to an agency, means any period during which interim or full-year appropriations for the applicable fiscal year are not in effect for the agency; and

(5) the term standard employee compensation means, with respect to a covered employee, the standard rate of basic pay, allowances, pay differentials, benefits, and other payments otherwise payable on a regular basis to the covered employee.

For fiscal year 2026, and any fiscal year thereafter, for any lapse in regular appropriations with respect to an agency, there are appropriated to the head of the agency, out of any money in the Treasury not otherwise appropriated, such sums as are necessary to provide—

(A) standard employee compensation to covered employees of the agency with respect to the period of the lapse in regular appropriations; and

(B) payment to covered contractors with respect to work that those covered contractors are required to perform for the agency during the period of the lapse in regular appropriations, pursuant to the terms of applicable contracts with those covered contractors.

The head of each agency to whom amounts are made available under paragraph (1) shall provide standard employee compensation to covered employees of the agency—

(A) if there is a lapse in regular appropriations ongoing on the date of enactment of this Act, as soon as is practicable, but not later than 7 days after the date of enactment of this Act, without regard to—

(i) scheduled pay dates; or

(ii) whether the covered employee was subject to furlough during such period; and

(B) with respect to any period of a lapse in regular appropriations beginning on or after the date of enactment of this Act, on the regularly scheduled pay dates of the covered employees.

Appropriations and funds made available and authority granted under subsection (b) shall be available to the head of an agency until whichever of the following first occurs:

(1) The enactment into law of appropriations for the agency until the end of the applicable fiscal year (including a continuing appropriation) that provide amounts for the purposes for which amounts are made available under subsection (b).

(2) The enactment into law of appropriations for the agency until the end of the applicable fiscal year (including a continuing appropriation) without any appropriation for such purposes.

Amounts provided under subsection (b) may not be used for a purpose described in subparagraph (A) or (B) of subsection (b)(1) for any portion of a lapse in regular appropriations for which a covered employee is provided with standard employee compensation, or a covered contractor is provided payment for performance of the applicable contract, respectively, using amounts other than amounts provided under subsection (b).

Appropriations made available under subsection (b) may not be obligated by the head of an agency during any period during which continuing appropriations for the purposes for which amounts are made available under subsection (b) are in effect for the agency.

Expenditures made pursuant to subsection (b) shall be charged to the applicable appropriation, fund, or authorization whenever an Act in which such applicable appropriation, fund, or authorization is included is enacted into law.

Notwithstanding any other provision of law (including any appropriation Act), the amounts provided under subsection (b)—

(1) shall be available solely for a purpose described in subparagraph (A) or (B) of subsection (b)(1); and

(2) may not be transferred, reprogrammed, obligated, or expended for any other purpose.

For fiscal year 2027, and each fiscal year thereafter, standard employee compensation, and payments to covered contractors, provided by an agency using amounts provided under subsection (b) shall be subject to the requirements, authorities, conditions, and limitations applicable with respect to the provision of standard employee compensation, or payment to covered contractors, respectively, by the agency under the Act that provided appropriations for the agency to provide standard employee compensation, or payment to covered contractors, respectively, immediately before the lapse in regular appropriations.

For fiscal year 2026, standard employee compensation, and payments to covered contractors, provided by an agency using amounts provided under subsection (b) shall be subject to—

(A) the requirements, authorities, conditions, and limitations applicable with respect to the provision of standard employee compensation, or payment to covered contractors, respectively, by the agency under the Continuing Appropriations Act, 2026 (division A of Public Law 119–37); or

(B) if an Act is enacted after the date of enactment of the Continuing Appropriations Act, 2026 (division A of Public Law 119–37) that provides continuing appropriations for fiscal year 2026 for the agency to provide standard employee compensation, or payment to covered contractors, respectively, the requirements, authorities, conditions, and limitations applicable with respect to the provision of standard employee compensation, or payment to covered contractors, respectively, by the agency under that subsequently enacted Act.

Funds appropriated by this Act may be obligated and expended notwithstanding section 15 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2680) and section 504(a)(1) of the National Security Act of 1947 (50 U.S.C. 3094(a)(1)).

This section shall be construed to provide each covered employee with standard employee compensation for the period of the lapse in regular appropriations as if the covered employee was performing the duties of the covered employee during the lapse in regular appropriations.

Nothing in this section may be construed to require an agency to take any action that the agency is not required to take under the terms of a contract with a covered contractor during any period during which there is not a lapse in regular appropriations.

Covered employees and employees of covered contractors shall perform their typical duties to the maximum extent practicable during a lapse in regular appropriations.

This section does not authorize or necessarily imply that an agency or employee may incur any obligations or expenditures that are not explicitly authorized by this Act.