S 3012119th CongressIntroduced

Shutdown Fairness Act

Introduced: Oct 15, 2025

Sponsor: Sen. Johnson, Ron [R-WI] (R-Wisconsin)

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Shutdown Fairness Act would create a special funding mechanism to pay and provide benefits to federal employees (and certain related workers) who perform work during a lapse in appropriations when regular funding is not in effect. For fiscal years 2026 and onward, it authorizes the head of each agency to draw from Treasury funds not otherwise appropriated to cover standard pay, allowances, benefits, and other regular-pay items for those “excepted” workers (including certain contractors supporting them and active-duty military) for periods of work performed during a lapse. The funding would remain available until either new appropriations are enacted or there is no appropriation for those purposes. The act would take effect retroactively to September 30, 2025. It also specifies that funds may not be obligated during periods when continuing resolutions are in place for the agency, and obligations would be charged to the agency’s regular appropriation once a regular or continuing appropriation is enacted.

Key Points

1Definitions and scope
2- “Excepted employee” includes agency personnel designated as such or performing emergency work, plus certain contractors supporting them and active-duty military members.
3- “Excepted work” is work performed by these employees during a lapse in appropriations when interim or full-year funding is not in effect for the agency.
4Funding mechanism
5- For FY2026 and later, the head of each agency may receive funds from Treasury money not otherwise appropriated to cover pay and related items for excepted workers for periods of excepted work.
6Availability and termination
7- Funds are available to the agency head until either (a) appropriations are enacted that cover the purposes, or (b) there is an enacted appropriation that provides no such funding.
8Interim continuing appropriations
9- Agencies may not obligate these funds during periods when continuing appropriations are in effect for the agency.
10Charging and timing
11- When regular appropriations are enacted, obligations and expenditures are charged to the applicable agency appropriation for the period covered.
12Retroactive effective date
13- The Act is treated as if enacted on September 30, 2025.

Impact Areas

Primary group/area affected- Federal employees who are designated as excepted and those performing emergency work during a lapse, plus contractors supporting them and active-duty military members.Secondary group/area affected- Federal agencies that manage operations during funding gaps and their budgeting/obligation processes.Additional impacts- Fiscal: creates a separate funding stream (from unobligated Treasury money) to pay for work during a lapse, potentially altering how pay during shutdowns is financed.- Governance: clarifies and codifies pay during lapses, which could affect debates over shutdown policy and labor protections for essential workers.- Administration: agencies would need to determine excepted status, track periods of excepted work, and ensure proper charging once regular appropriations are enacted.The bill reinforces that pay for excepted work is tied to periods when there is a lapse and is not available during CR periods.It relies on definitions from the Office of Personnel Management for “excepted” and “emergency work,” and includes contractors and active-duty military within its scope.While providing protection for pay during shutdown work, it does not change the overall requirement that most federal employees not performing excepted work would remain unpaid during a lapse.

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