February 2, 2026
Mr. Walkinshaw (for himself, Mr. Beyer, Ms. Norton, Mr. Raskin, Mr. Subramanyam, Mr. Mfume, and Mr. Vindman) introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, House Administration, the Judiciary, and Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To provide for appropriations to pay Federal employees and contractors during periods of lapses in appropriations in fiscal year 2026, and for other purposes.
Section 1. Short title
This Act may be cited as the True Shutdown Fairness Act
.
Sec. 2. Payment of employees and contractors during shutdowns
(a) Definitions
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 District of Columbia public employer described in clause (i) or (ii) of section 1341(c)(1)(B) of title 31, United States Code (as in effect on the day before the date of enactment of this Act);
(2)
the term contract employee means an employee of a contractor for whom a lapse in regular appropriations could suspend, delay, or interrupt (or, if there is an ongoing lapse in regular appropriations on the date of enactment of this Act, for whom the lapse in regular appropriations suspended, delayed, or interrupted) all or part of the work of the applicable contract, or could stop (or stopped) all or part of the work called for in that contract, including—
(A)
a service employee, as defined in section 6701(3) of title 41, United States Code, except that an individual covered under this subparagraph includes an individual described in subparagraph (C) of such section 6701(3);
(B)
a laborer or mechanic with respect to whom section 3142 of title 40, United States Code, applies; and
(C)
an employee of a business concern that holds a contract, subcontract, or other agreement with an agency that provides for services or supplies, including a service contract under chapter 67 of title 41, 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 September 30, 2026—
(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 fiscal year 2026 are not in effect for the agency; and
(5)
the term standard employee compensation means, with respect to a covered employee or a contract employee, the standard rate of basic pay, allowances, pay differentials, benefits, and other payments otherwise payable on a regular basis to the covered employee or contract employee.
(b) Appropriations
(1) In general
For fiscal year 2026, 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, with respect to the period of the lapse in regular appropriations—
(A)
standard employee compensation to covered employees of the agency; and
(B)
payments to contractors of the agency to provide standard employee compensation to contract employees with respect to the agency, which shall only be used by those contractors to provide standard employee compensation to those contract employees.
(2) Agency requirement
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 lapse in regular appropriations; 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.
(c) Price adjustment
(1) In general
As soon as practicable after the date of enactment of this Act, the head of each agency shall adjust the price of any contract described in paragraph (2) to compensate the applicable contractor for reasonable costs incurred, as described in paragraph (3), regardless of whether the contract provides for, or otherwise prohibits, the contractor to incur those reasonable costs or receive such an adjustment for incurring those reasonable costs.
(2) Contract described
A contract is described in this paragraph if the contract is a contract of an agency for which, as a result of a lapse in regular appropriations occurring before the date of enactment of this Act, the contractor—
(A)
suspended, delayed, or interrupted all or part of the work under that contract;
(B)
stopped all or any part of the work called for in the contract; or
(C)
with respect to a lapse in regular appropriations beginning after the date of enactment of this Act, could take an action described in subparagraph (A) or (B).
(3) Reasonable costs described
Reasonable costs described in this paragraph are costs actually incurred by the applicable contractor—
(A)
to provide standard employee compensation for the period of the applicable lapse in regular appropriations, at the standard rate of compensation, to any contract employee employed by the contractor who, as a result of that lapse in regular appropriations—
(i)
was furloughed or laid off;
(ii)
was otherwise not working;
(iii)
experienced a reduction of hours; or
(iv)
experienced a reduction in compensation; or
(B)
to restore paid leave taken by any contract employee described in subparagraph (A) during the applicable lapse in regular appropriations, if the contractor required or permitted employees of the contractor to use paid leave as a result of that lapse in regular appropriations.
(4) Evidence
A contractor seeking an adjustment under paragraph (1) shall provide the head of the applicable agency any evidence of the reasonable costs incurred by the contractor described in paragraph (3) as the head of the agency, in consultation with the Administrator of the Office of Federal Procurement Policy, considers appropriate.
(d) Termination
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 fiscal year 2026 (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 fiscal year 2026 (including a continuing appropriation) without any appropriation for such purposes.
(e) Limitation to individuals affected by a shutdown
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 contractor is provided payment to provide a contract employee with standard employee compensation, respectively, using amounts other than amounts provided under subsection (b).
(f) Interim continuing appropriations
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.
(g) Charging to future appropriations
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.
(h) Limitation on transfer authority
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.
(i) Terms and conditions
For fiscal year 2026, standard employee compensation provided to covered employees, and payments to contractors to provide standard employee compensation to contract employees, provided by an agency using amounts provided under subsection (b) shall be subject to—
(1)
the requirements, authorities, conditions, and limitations applicable with respect to the provision of standard employee compensation, or payment to contractors, respectively, by the agency under the Continuing Appropriations Act, 2026 (division A of Public Law 119–37); or
(2)
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 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.
(j) Authorization To obligate and expend funds
Funds appropriated by this section 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)).
(k) Rules of construction
(1) Standard employee compensation
This section shall be construed to provide each covered employee and contract employee with standard employee compensation for the period of the lapse in regular appropriations as if the covered employee or contract employee was performing the duties of the covered employee or contract employee during the lapse in regular appropriations.
(2) No change in agency responsibilities
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 during any period during which there is not a lapse in regular appropriations.
(l) Agency activities
(1) In general
Covered employees and contract employees shall perform their typical duties to the maximum extent practicable during a lapse in regular appropriations.
(2) Other obligations or expenditures
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 section.
Sec. 3. Limitation on reductions in force
(a) Definitions
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 District of Columbia public employer described in clause (i) or (ii) of section 1341(c)(1)(B) of title 31, United States Code (as in effect on the day before the date of enactment of this Act); and
(2)
the term lapse in regular appropriations, with respect to an agency, means any period during which interim or full-year appropriations for fiscal year 2026 are not in effect for the agency.
(b) Prohibition
During a lapse in regular appropriations, none of the funds made available by this or any other Act may be used to—
(1)
propose or implement a reduction in force, or any similar effort, to permanently reduce the number of employees employed by an agency; or
(2)
place any employee of an agency in administrative leave for more than 10 work days in any calendar year.
(c) Rule of construction
Nothing in this section may be construed to affect a voluntary separation payment offered to an employee under section 3523 of title 5, United States Code.