H.R. 5792: Government Shutdown Salary Suspension Act

This bill, known as the Government Shutdown Salary Suspension Act, aims to suspend the payment of salaries for certain government officials during periods when a government shutdown occurs. Specifically, it targets the following positions: Members of Congress, the President, and the Vice President.

Key Provisions of the Bill

1. Suspension of Salaries During Shutdowns

If a government shutdown is in effect at any time during a pay period, the salaries of the affected officials will not be paid but instead held in an escrow account. The payroll administrators for both the House of Representatives and the Senate, as well as the Director of the Office of Personnel Management for the President and Vice President, will manage these escrow accounts.

2. Escrow Account Management

The salaries held in escrow will be equal to the daily rate of pay multiplied by the number of days the shutdown lasts within a pay period. Payments will only be released from escrow once the government shutdown ends, or at the conclusion of the Congress in which the shutdown occurred for Members of Congress. The same applies to the President and Vice President concerning their pay during their respective terms.

3. Method of Withholding Payments

During the period the salaries are held in escrow, the payroll administrators must ensure that withholding amounts (like taxes) are also applied to these amounts, consistent with normal payment practices.

4. Definitions and Guidelines

The bill clarifies what constitutes a government shutdown, defining it as a situation where there is a lapse in appropriations that prevents federal agencies or departments from operating due to a failure to pass necessary funding legislation.

Impact and Implementation

The provisions of this bill would take effect during the 119th Congress, with guidelines for future Congresses set out. This means that salaries will be impacted by any future government shutdowns as well.

Relevant Companies

• MSFT - Microsoft Corporation: As a major technology company that relies on federal contracts, any disruption in government operations could affect its business dealings.
• BA - The Boeing Company: Boeing's contracts with the government for defense and aerospace can be impacted by government shutdowns, affecting their operational revenue.
• RTX - Raytheon Technologies Corporation: Similar to Boeing, Raytheon is heavily involved in government contracts, particularly in defense, which may be affected during a government shutdown.
• LOCK - L3Harris Technologies, Inc.: This company, which serves various government contracts, could face disruptions due to a government shutdown.