S. 3165: True Shutdown Fairness Act

This bill, known as the True Shutdown Fairness Act, is designed to address the financial impact on federal employees and contractors during a specific government shutdown period that began on October 1, 2025. Here are the key points of the bill's provisions:

Purpose

The main aim of the bill is to ensure that federal employees and contractors receive their pay and benefits during the lapse in appropriations, thereby minimizing financial hardship due to the shutdown.

Definitions

• Agency: Refers to any authority related to the executive, legislative, or judicial branches of the U.S. government.
• Contract Employee: An employee whose work is impacted due to the lapse in appropriations.
• Covered Individual: This includes federal employees, contract employees, and active duty members of the Armed Forces who are affected during the lapse.
• Covered Lapse in Appropriations: This refers to the specific government shutdown period starting on October 1, 2025.

Appropriations

The bill proposes that for fiscal year 2026, necessary funds will be allocated to ensure standard pay, allowances, and benefits for covered individuals affected by the shutdown.

Adjustments for Contractors

The bill also requires agency heads to adjust contractor prices to compensate for reasonable costs incurred during the shutdown. This includes:

• Compensation for employees who were furloughed or not working due to the shutdown.
• Restoring paid leave used by employees during this period.

Protection Against Reductions in Force

During the lapse in appropriations, the bill prohibits:

• The implementation of any workforce reduction or similar measures that would permanently decrease the number of employees at an agency.
• Placing any employee on administrative leave for more than 10 work days in a calendar year.

Effective Date and Future Appropriations

The provisions of this bill will be effective retroactively as if enacted on September 30, 2025, and expenditures made under this act will be charged to the corresponding future appropriations when such appropriations are enacted into law.

Limitations

There are specific limitations included in the bill to ensure that government funding remains available for the intended purposes without encouraging permanent employee reductions during the covered lapse.

Relevant Companies

• BA (Boeing): Depending on the contracts they have with federal agencies, Boeing may experience financial impacts due to adjustments in payments related to work suspension during the lapse.
• GS (Goldman Sachs): As a financial services firm, if they are involved in managing government contracts or providing financial services to federal agencies, they may also feel the effects.
• RTX (Raytheon Technologies): Similar to Boeing, their governmental contracts may necessitate price adjustments and may be affected by the provisions of this bill.