S. 3057: Withhold Member Pay During Shutdowns Act

This bill, known as the "Withhold Member Pay During Shutdowns Act," proposes to reduce the annual salary of Members of Congress when a government shutdown occurs. Here’s a breakdown of its main provisions:

Definition of a Government Shutdown

The bill defines a government shutdown as a situation where there is a lapse in appropriations for one or more federal agencies or departments.

Impact on Congressional Salaries

If a government shutdown happens during a pay period, the payroll administrator for each House of Congress must withhold a portion of the compensation due to each Member of Congress for that period. Specifically:

• The amount withheld will be equal to one day's worth of pay multiplied by the number of 24-hour periods during which the shutdown is in effect within that pay period.

Effective Dates

This reduction in pay will start applying after the general elections for federal office, which are scheduled for November 2026. Until then, there are different provisions in place.

Holding Salaries in Escrow

Before the pay reduction takes effect, if a government shutdown occurs, the payroll administrators will:

• Withhold from Members of Congress an amount equal to one day's worth of pay multiplied by the number of days the shutdown lasts during the pay period.
• Deposit these withheld amounts into an escrow account.

At the end of the Congress, any withheld amounts remaining in the escrow account will be released to the Members of Congress, ensuring compliance with the 27th Amendment to the Constitution, which prohibits changes to congressional pay while Congress is in session.

Role of the Secretary of the Treasury

The Secretary of the Treasury is responsible for providing the payroll administrators with the necessary support to implement these provisions.

Summary of Key Points

• Members of Congress will not receive pay during government shutdowns.
• A structured withholding process is established for salaries based on the duration of the shutdown.
• Provisions for escrow accounts for withholdings will be enforced until the pay reduction officially takes effect.

Relevant Companies

None found.