S. 3168: Shutdown Fairness Act

This bill, known as the Shutdown Fairness Act, focuses on ensuring that federal employees, contract employees, and members of the Armed Forces receive their pay and allowances during periods when the government has not approved funding, referred to as lapses in regular appropriations. The key components of the bill are as follows:

Definitions

The bill defines several terms critical to understanding its provisions:

• Agency: Any authority within the executive, legislative, or judicial branches of the U.S. government.
• Contractor: Any contractor working at any level for an agency.
• Covered Employees: This includes federal employees, contractor employees providing support, and members of the Armed Forces.
• Lapse in Regular Appropriations: A period during which funding has not been approved for an agency.
• Standard Employee Compensation: The regular pay and allowances for covered employees during their service.

Appropriations

The bill allocates funding to provide compensation during lapses in appropriations:

• For fiscal year 2026 and any later fiscal years, the bill appropriates funds to ensure standard employee compensation for covered employees and contractors during lapses.
• Heads of agencies will be required to disburse compensation promptly, within seven days of the enactment of the bill, for the periods affected by previous funding lapses.

Restrictions and Limitations on Appropriations

The bill specifies certain conditions under which appropriated funds can be used:

• Funds can only be used to provide pay for those affected by the government shutdown and cannot be used for any other purposes.
• Once new appropriations are enacted that cover the same fiscal year, the provisions of this bill will no longer apply.
• Payments cannot overlap with other compensation already provided for the same periods.

Payment Timing

The bill establishes guidelines for when payments should be made:

• Payments for periods covered will be made as soon as possible, even if it is outside of regular pay schedules.
• For future lapses occurring after the enactment of the bill, payments will be made according to regular pay dates.

Implementation and Compliance

The bill requires that:

• Covered employees must perform their regular duties whenever possible during lapses in funding.
• The bill is retroactively effective as of September 30, 2025, meaning its provisions will apply to lapses that occurred after this date.

Termination of Appropriations

Funds provided under this bill will continue until either:

• Appropriations are passed for the respective agency for that fiscal year.
• A different kind of appropriation is approved that does not include funding for the same purposes.

Relevant Companies