Help FEDS Act
- Bill Number
- H.R. 5572
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Labor and Employment
- Status
- Introduced
- Latest Action
- 2025-09-26: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-03-30T18:47:25Z
AI-Generated Summary
Purpose
The "Help Federal Employees During Shutdowns Act" (H.R. 5572), also known as the "Help FEDS Act," aims to provide financial support to certain federal employees who work without pay during government shutdowns caused by lapses in appropriations. It ensures these employees can access unemployment compensation (temporary payments to those out of work) through state programs, with full federal reimbursement to states, specifically for fiscal years 2026 and 2027.
Key Provisions
- Eligibility for Benefits: States must allow "excepted federal employees" (essential workers required to perform emergency duties without pay during a shutdown) to apply for and receive unemployment compensation for any week they work unpaid due to a funding lapse.
- Repayment Requirement: If an employee later receives back pay (retroactive wages once funding resumes), they must repay the unemployment compensation received during the shutdown period.
- Handling Overpayments: Any unrepaid amounts are treated as overpayments under state unemployment laws, recoverable through standard state procedures (e.g., deductions from future benefits or other collection methods). Repaid funds must be deposited into the state's unemployment fund.
- Federal Reimbursement: The U.S. Treasury, guided by certifications from the Secretary of Labor, will reimburse states 100% of:
- Unemployment benefits paid to these employees.
- Additional administrative costs (e.g., processing claims) incurred by states.
- Funding Source: Reimbursements come from the Unemployment Trust Fund, a federal reserve used for unemployment programs.
- Definitions:
- "Excepted federal employee": A federal worker officially designated as essential (per Office of Personnel Management rules) who is furloughed without pay due to a shutdown.
- Applies only to lapses in appropriations during fiscal years 2026 and 2027.
Significant Changes to Existing Law
- Amends Section 303 of the Social Security Act (which governs state unemployment insurance programs and federal funding requirements) by adding a new subsection (n). This mandates states to include provisions for federal shutdown-related claims in their unemployment laws, which they previously were not required to do.
- Introduces a direct federal backstop for costs, ensuring states face no net financial burden, unlike current ad-hoc arrangements where federal employees may not qualify for state unemployment during shutdowns or must navigate complex eligibility rules.
Potential Impacts
- On Government Agencies: State unemployment agencies will need to process additional claims during shutdowns, but with full federal reimbursement, including admin costs, this minimizes fiscal strain. Federal agencies like the Departments of Labor and Treasury will handle certifications and payments, drawing from the Unemployment Trust Fund.
- On Citizens: Primarily benefits excepted federal employees (e.g., those in national security, public health, or air traffic control) by providing income support during unpaid work periods, reducing personal financial hardship. It does not directly affect non-federal workers or international relations.
- Broader Effects: Could shorten the perceived duration of shutdowns' impacts on essential services by supporting workers, potentially influencing future budget negotiations.
Main Stakeholders Affected
- Federal Employees: Especially excepted workers (estimated hundreds of thousands during past shutdowns) who gain access to temporary benefits without long-term repayment risks if back pay arrives promptly.
- State Governments: Unemployment insurance programs must comply, but benefit from full cost coverage and potential deposits from repayments.
- Federal Government: Departments of Labor, Treasury, and the Office of Personnel Management oversee implementation; the Unemployment Trust Fund provides the financing.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens federal oversight of state unemployment systems by tying compliance to existing Social Security Act requirements, potentially setting a precedent for future federal mandates on state programs. Ensures repayment mechanisms align with standard overpayment recovery laws, avoiding new legal complexities.
- Constitutional: No direct challenges anticipated, as it involves Congress's spending power (Article I, Section 8) to allocate funds and condition federal support on state actions, a common practice in unemployment policy.
- Political: Addresses vulnerabilities exposed in recent shutdowns (e.g., 2018-2019), appealing to bipartisan support for federal workers. Limits scope to two fiscal years, possibly as a pilot or temporary measure amid ongoing debates over shutdown prevention, without altering core budget processes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (37)
Rep. Ansari, Yassamin [D-AZ-3], Rep. Bell, Wesley [D-MO-1], Rep. Beyer, Donald S. [D-VA-8], Rep. Cleaver, Emanuel [D-MO-5], Rep. Dexter, Maxine [D-OR-3], Rep. Hoyer, Steny H. [D-MD-5], Rep. Ivey, Glenn [D-MD-4], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Olszewski, Johnny [D-MD-2], Rep. Randall, Emily [D-WA-6], Rep. Subramanyam, Suhas [D-VA-10], Rep. Walkinshaw, James R. [D-VA-11], Rep. Tlaib, Rashida [D-MI-12], Rep. Whitesides, George [D-CA-27], Rep. Davis, Danny K. [D-IL-7], Rep. Espaillat, Adriano [D-NY-13], Rep. Lofgren, Zoe [D-CA-18], Rep. McClain Delaney, April [D-MD-6], Rep. Raskin, Jamie [D-MD-8], Rep. Thanedar, Shri [D-MI-13], Rep. Tokuda, Jill N. [D-HI-2], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Horsford, Steven [D-NV-4], Rep. Schneider, Bradley Scott [D-IL-10], Rep. Huffman, Jared [D-CA-2], Rep. McBride, Sarah [D-DE-At Large], Rep. Gottheimer, Josh [D-NJ-5], Rep. Swalwell, Eric [D-CA-14], Rep. Landsman, Greg [D-OH-1], Rep. Carter, Troy A. [D-LA-2], Rep. Evans, Dwight [D-PA-3], Rep. Soto, Darren [D-FL-9], Rep. Pocan, Mark [D-WI-2], Rep. Case, Ed [D-HI-1], Rep. Jayapal, Pramila [D-WA-7], Rep. Chu, Judy [D-CA-28], Rep. Keating, William R. [D-MA-9]
Recent Actions
- 2025-09-26: Referred to the House Committee on Ways and Means.
- 2025-09-26: Introduced in House
- 2025-09-26: Introduced in House
Bill Versions
- Help Federal Employees During Shutdowns Act — issued 2025-09-26 — PDF (4 pages)