Shutdown Fairness Act

Bill Number

H.R. 7137

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Economics and Public Finance

Status

Introduced

Latest Action

2026-01-16: Referred to the Committee on Appropriations, and in addition to the Committees on Armed Services, Oversight and Government Reform, House Administration, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-06-24T08:09:30Z

AI-Generated Summary

Purpose of the Legislation

The Shutdown Fairness Act (H.R. 7137) aims to ensure that federal employees, certain contract workers, and members of the Armed Forces receive their regular pay and benefits during periods when Congress fails to pass timely appropriations, commonly known as government shutdowns. It provides upfront funding from the U.S. Treasury to cover these costs, with the intention of minimizing financial hardship and maintaining government operations.

Key Provisions

• Definitions:
• Agency: Includes all parts of the executive, legislative, and judicial branches of the U.S. government, plus certain District of Columbia public employers.
• Covered Employee: Federal workers (including those furloughed or deemed essential), active-duty military members, and reserve component members performing service; applies to those employed or offered employment before the shutdown begins.
• Covered Contractor: Private companies with government contracts that must continue providing support services during a shutdown, as determined necessary under existing law (e.g., the Antideficiency Act, which prohibits spending without appropriations).
• Lapse in Regular Appropriations: Any period without interim or full-year funding for an agency.
• Standard Employee Compensation: Regular pay, allowances, benefits, and differentials that employees would normally receive.

• Funding Mechanism:
• For fiscal year 2026 and beyond, appropriates necessary funds from the Treasury (not otherwise allocated) to pay covered employees their standard compensation and covered contractors for required work during shutdowns.
• Agencies must issue payments promptly: within 7 days for any ongoing shutdown at enactment, or on regular pay dates for future ones, regardless of furlough status.

• Termination and Limitations:
• Funding ends when Congress passes appropriations for the agency (even if they exclude pay-related amounts) or a full-year budget.
• No double payments: Funds cannot cover periods where pay is already provided by other means.
• Cannot be used during periods of continuing resolutions (temporary funding measures).
• Expenditures are charged against future appropriations once enacted; funds cannot be transferred or used for other purposes.
• Payments must follow the same rules, conditions, and limits as under the most recent pre-shutdown appropriations act.

• Operational Rules:
• Employees and contractors must perform their usual duties to the fullest extent possible during shutdowns.
• Does not authorize new obligations or spending beyond pay and required contractor work.
• Overrides certain restrictions on obligating funds (e.g., under specific State Department and National Security Act provisions).
• Treats pay as if employees were actively working during the shutdown; does not alter pre-shutdown contractor agreements.

Significant Changes to Existing Law

• Under current law (e.g., the Antideficiency Act), non-essential federal employees are furloughed without immediate pay during shutdowns, though they receive back pay once funding resumes; essential employees and military continue work but face delayed pay. Contractors may stop work if unfunded.
• This bill introduces automatic, immediate appropriations from the Treasury for pay during shutdowns starting in FY 2026, shifting from delayed back pay to upfront funding (reimbursed later). It expands coverage to include certain contractors required to work and ensures payments align with prior fiscal year's terms, reducing administrative delays and uncertainties.

Potential Impacts

• On Government Agencies: Enables smoother operations by ensuring essential personnel and support services continue without pay-related disruptions; reduces administrative burden of processing back pay post-shutdown.
• On Citizens: Minimizes indirect effects of shutdowns, such as delays in public services (e.g., national parks, tax processing), by keeping more workers compensated and motivated; could prevent economic ripple effects like reduced spending by affected families.
• On International Relations: Limited direct impact, but ensures continuity in defense and diplomatic functions (e.g., Armed Forces pay and contractor support), potentially avoiding signals of U.S. government instability to allies or adversaries.
• Overall, it could shorten the perceived severity of shutdowns, though it does not prevent them.

Main Stakeholders Affected

• Federal Employees: Over 2 million civilian workers across branches, including furloughed and essential staff, who gain immediate pay security.
• Armed Forces Members: Active-duty and reserve personnel, ensuring uninterrupted compensation during national security operations.
• Covered Contractors: Businesses providing essential government support (e.g., IT, logistics), who receive payments to sustain work.
• Government Agencies: All executive, legislative, judicial entities, and D.C. public employers, responsible for implementing payments.
• Taxpayers: Indirectly affected, as funds come from the Treasury and are later charged to congressional budgets.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces the Antideficiency Act by providing a statutory exception for pay during lapses, while limiting use to avoid broader unauthorized spending; clarifies contractor obligations under existing contracts.
• Constitutional: Aligns with Congress's power of the purse (Article I, Section 9) by proactively appropriating funds, but could raise questions about preempting future budgetary debates; does not alter separation of powers.
• Political: Bipartisan sponsorship (from both parties) signals broad support for worker protections amid frequent shutdown threats; may reduce political leverage in budget negotiations by lessening shutdown consequences, potentially encouraging fiscal responsibility or, conversely, more brinkmanship. No explicit partisan tilt in the text.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Johnson, Dusty [R-SD-At Large]

Cosponsors (36)

Rep. Gottheimer, Josh [D-NJ-5], Rep. Mackenzie, Ryan [R-PA-7], Rep. Goodlander, Maggie [D-NH-2], Rep. Mann, Tracey [R-KS-1], Rep. Panetta, Jimmy [D-CA-19], Rep. Wittman, Robert J. [R-VA-1], Rep. Carbajal, Salud O. [D-CA-24], Rep. Steil, Bryan [R-WI-1], Rep. Golden, Jared F. [D-ME-2], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Soto, Darren [D-FL-9], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Davis, Donald G. [D-NC-1], Rep. Lawler, Michael [R-NY-17], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Green, Al [D-TX-9], Rescom. Hernández, Pablo Jose [D-PR-At Large], Rep. Van Orden, Derrick [R-WI-3], Rep. Liccardo, Sam T. [D-CA-16], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Barrett, Tom [R-MI-7], Rep. Correa, J. Luis [D-CA-46], Rep. Kean, Thomas H. [R-NJ-7], Rep. Bean, Aaron [R-FL-4], Rep. Grothman, Glenn [R-WI-6], Rep. Vasquez, Gabe [D-NM-2], Rep. Mills, Cory [R-FL-7], Rep. Landsman, Greg [D-OH-1], Rep. Miller, Max L. [R-OH-7], Rep. Bishop, Sanford D. [D-GA-2], Rep. Stevens, Haley M. [D-MI-11], Rep. Thanedar, Shri [D-MI-13], Rep. Neguse, Joe [D-CO-2], Rep. Suozzi, Thomas R. [D-NY-3]

Recent Actions

• 2026-01-16: Referred to the Committee on Appropriations, and in addition to the Committees on Armed Services, Oversight and Government Reform, House Administration, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-16: Referred to the Committee on Appropriations, and in addition to the Committees on Armed Services, Oversight and Government Reform, House Administration, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-16: Referred to the Committee on Appropriations, and in addition to the Committees on Armed Services, Oversight and Government Reform, House Administration, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-16: Referred to the Committee on Appropriations, and in addition to the Committees on Armed Services, Oversight and Government Reform, House Administration, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-16: Referred to the Committee on Appropriations, and in addition to the Committees on Armed Services, Oversight and Government Reform, House Administration, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-01-16: Introduced in House
• 2026-01-16: Introduced in House

Bill Versions

• Shutdown Fairness Act — issued 2026-01-16 — PDF (10 pages)