Shutdown Fairness Act
H.R. 5801, the Shutdown Fairness Act, would authorize and fund pay and allowances for "excepted" federal employees to continue receiving their regular compensation for periods when there is a lapse in federal funding (i.e., during government shutdowns). It defines who qualifies as an excepted employee (and includes contractors supporting them and active-duty military) and creates a dedicated appropriation to cover pay and related benefits for the period of "excepted work" during a lapse. The funding would be available to the agency head until either new appropriations are enacted or there is a final determination that no appropriations will be provided for those purposes. The bill retroactively takes effect on September 30, 2025. In short, the measure aims to ensure that essential workers who continue to perform duties during a funding gap are paid, even when normal appropriations are not in place, and it sets rules for how such pay is to be provided and later charged to the agency’s regular funding once new appropriations are enacted.
Key Points
- 1Short title: The act would be cited as the “Shutdown Fairness Act.”
- 2Coverage and definitions:
- 3- Agencies include executive, legislative, and judicial branches.
- 4- An “excepted employee” is someone the agency head designates as excepted or who performs emergency work, plus a contractor supporting such employees and a member of the Armed Forces on active duty.
- 5- “Excepted work” is work performed during a period when interim or full-year appropriations are not in effect for the agency.
- 6New funding during a lapse:
- 7- For fiscal year 2026 and onward, during any period when interim or full-year appropriations are not in effect, funds would be appropriated to the agency head (from the Treasury, not otherwise appropriated) to cover standard pay, allowances, differential pay, benefits, and other payments for excepted employees performing excepted work.
- 8Termination and sunset:
- 9- The funding is available until either (a) new appropriations for the agency are enacted, or (b) it is enacted without any appropriation for those purposes.
- 10Interim continuing appropriations:
- 11- The act prohibits obligating the funds during any period when continuing appropriations for the purposes of subsection (b) are in effect.
- 12Charging and retroactive effect:
- 13- Obligations incurred under this act would be charged to the agency’s applicable appropriation once regular appropriations or continuing appropriations are enacted for the agency.
- 14- The act has a retroactive effective date to September 30, 2025.
- 15Administrative scope:
- 16- The definitions and provisions cover pay and benefits, but the “excepted” designation remains at the agency head’s discretion, consistent with OPM definitions for excepted work.