True Shutdown Fairness Act

Summary#

This bill, the True Shutdown Fairness Act, provides money in fiscal year 2026 to pay agency employees and certain contractor employees during any lapse in regular appropriations. It defines who counts as a covered employee and a contract employee. Agencies must pay "standard employee compensation" (regular pay, allowances, and similar regular payments) to covered employees during funding gaps. The bill also requires agencies to adjust contracts to reimburse contractors for reasonable costs of keeping contract employees paid during such lapses. The authority lasts until Congress enacts appropriations for the agency for fiscal year 2026 or enacts appropriations that exclude these payments.

What it means for you#

  • If you are a covered employee (including many agency workers, some military members, and certain contractor workers), the bill would provide regular pay during any FY2026 funding gap.
  • If a lapse in appropriations was already happening when this became law, agencies must pay affected covered employees as soon as practicable and no later than 7 days after enactment. For lapses that start after enactment, agencies pay on regular scheduled pay dates.
  • Contractors who stopped or reduced work because of a lapse could get contract-price adjustments to cover reasonable costs for paying their employees or restoring paid leave.
  • Agencies would be expected to have covered and contract employees perform their typical duties to the maximum extent practicable during a lapse.
  • The bill bars agencies from using these funds for other purposes and says expenditures will be charged to the agency’s appropriation when that appropriation is later enacted.

Expenses#

  • The bill authorizes appropriations out of the Treasury as needed in FY2026 to provide standard employee compensation to covered employees and to pay contractors so they can provide that compensation to contract employees.
  • It requires agencies to adjust contract prices to cover reasonable contractor costs for paying contract employees during prior or future lapses.
  • No publicly available information on the total cost or budget estimate is included in the bill text provided.

Proponents' View#

Supporters propose this measure to ensure employees and eligible contractor workers receive their usual pay during funding gaps and to limit workforce reductions and long administrative leave during those lapses. The bill also aims to make contractors whole for reasonable costs of keeping contract employees paid when appropriations lapse.

Opponents' View#

No publicly available information.