True Shutdown Fairness Act

Bill Number: H.R. 7322
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Government Operations and Politics
Status: Introduced
Latest Action: 2026-02-02: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, House Administration, the Judiciary, and Armed Services, 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: 2026-04-21T08:06:30Z

AI-Generated Summary

Purpose of the Legislation

The "True Shutdown Fairness Act" (H.R. 7322) aims to protect federal employees and contractors from financial hardship during government shutdowns—periods when Congress fails to pass funding bills on time—specifically for fiscal year 2026 (October 1, 2025, to September 30, 2026). It ensures these workers receive their regular pay and benefits even if funding lapses, reducing the economic impact of such disruptions.

Key Provisions

Definitions:
"Agency" includes all parts of the executive, legislative, and judicial branches, plus certain District of Columbia public employers.
"Covered employee" refers to federal workers (including active-duty military and reservists), regardless of whether they are furloughed (temporarily laid off) or deemed essential during a shutdown. It applies to those employed or hired before the lapse begins.
"Contract employee" covers workers for government contractors whose jobs could be affected by a funding lapse, including service workers, laborers, and those under service or supply contracts.
"Lapse in regular appropriations" means any period in FY 2026 without interim or full-year funding for an agency.
"Standard employee compensation" includes regular pay, allowances, benefits, and differentials.

Funding for Pay During Lapses:
Automatically appropriates (allocates) money from the U.S. Treasury to agencies to cover standard compensation for covered employees and payments to contractors for their employees during any FY 2026 funding lapse.
Agencies must pay covered employees promptly: within 7 days for ongoing lapses at enactment, and on regular pay dates for future ones, ignoring furloughs or scheduled dates.
Payments to contractors are restricted to covering employee compensation only.

Contractor Cost Adjustments:
Agencies must adjust contract prices to reimburse contractors for "reasonable costs" from shutdowns, such as paying furloughed or reduced-hour workers or restoring used paid leave.
Contractors must provide evidence of costs, reviewed by the agency head and the Office of Federal Procurement Policy (a group that oversees government buying).

Duration and Limitations:
Funds are available until Congress passes FY 2026 appropriations (full or temporary) that cover these payments, or until appropriations exclude them.
Funds cannot be used for non-essential purposes, transferred elsewhere, or spent during periods of active temporary funding.
All expenditures will be charged (billed) to future appropriations when enacted.
Employees and contractors must perform normal duties as much as possible; the law does not authorize extra spending or obligations.

Prohibitions During Lapses:
Bans using any funds to propose or carry out "reductions in force" (permanent layoffs to cut staff) or place employees on administrative leave (paid non-work status) for more than 10 workdays per year.
Does not affect voluntary separation incentives for employees.

Other Rules:
Pay and payments follow conditions from any FY 2026 temporary funding laws.
Overrides certain restrictions on spending for the State Department and national security agencies.
Ensures pay as if workers were on duty, but does not change normal contract terms outside shutdowns.

Significant Changes to Existing Law

Currently, during shutdowns (caused by lapsed appropriations), non-essential federal employees are furloughed without pay until funding resumes, and contractors often face delays or non-payment, leading to financial strain. This bill introduces automatic Treasury funding to guarantee pay for all affected workers, regardless of essential status or furlough. It also mandates contractor reimbursements and bans layoffs or extended leave during lapses, which are not prohibited under current law. These changes apply only to FY 2026 and build on existing temporary funding acts without altering broader shutdown rules.

Potential Impacts

On Government Agencies: Simplifies operations during shutdowns by ensuring staff retention and contractor continuity, potentially reducing administrative burdens like processing back pay. However, agencies must manage reimbursements and evidence reviews, and funds cannot support non-pay activities.
On Citizens: Provides financial stability for over 2 million federal employees and many contractors, preventing missed bills, foreclosures, or economic ripple effects (e.g., reduced local spending). Taxpayers may face higher short-term costs from Treasury draws, later charged to appropriations.
On International Relations: Minimal direct impact, though it could ensure uninterrupted pay for diplomats and military personnel, supporting steady foreign policy and defense activities during lapses.

Main Stakeholders Affected

Federal Employees and Military Personnel: Gain guaranteed pay and protection from layoffs or prolonged leave, benefiting essential and non-essential workers alike.
Contractors and Their Employees: Receive reimbursements for shutdown-related costs, stabilizing businesses that rely on government work (e.g., service providers, suppliers).
Government Agencies: Must implement payments and adjustments, affecting oversight bodies like the Office of Federal Procurement Policy and committees such as Oversight and Government Reform.
Taxpayers and Congress: Bear the cost through Treasury funds, with implications for budget negotiations; the bill's sponsors (Democrats) highlight fairness, but it could influence future funding debates.

Notable Legal, Constitutional, or Political Implications

Legal: Authorizes emergency spending from the Treasury without prior specific appropriation, potentially stretching the Antideficiency Act (which bars unauthorized obligations). It includes safeguards like future charging and purpose limits to comply with constitutional spending rules (Article I, Section 9), but could face challenges if seen as bypassing Congress's "power of the purse."
Constitutional: Aligns with Congress's authority to appropriate funds but raises questions about executive implementation during lapses; overrides select laws for efficiency, which might invite court tests on separation of powers.
Political: Reduces the leverage of shutdowns as a bargaining tool in budget disputes, making them less painful for workers and potentially pressuring lawmakers to avoid them. As a targeted FY 2026 measure introduced by bipartisan but mostly Democratic sponsors, it reflects ongoing debates over government funding reliability without broader reform.

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

Sponsor

Rep. Walkinshaw, James R. [D-VA-11]

Cosponsors (37)

Rep. Beyer, Donald S. [D-VA-8], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Raskin, Jamie [D-MD-8], Rep. Subramanyam, Suhas [D-VA-10], Rep. Mfume, Kweisi [D-MD-7], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Soto, Darren [D-FL-9], Rep. Espaillat, Adriano [D-NY-13], Rep. Landsman, Greg [D-OH-1], Rep. Thanedar, Shri [D-MI-13], Rep. Wilson, Frederica S. [D-FL-24], Rep. Moulton, Seth [D-MA-6], Rep. Elfreth, Sarah [D-MD-3], Rep. McClain Delaney, April [D-MD-6], Rep. Carson, André [D-IN-7], Rep. Goldman, Daniel S. [D-NY-10], Rep. Panetta, Jimmy [D-CA-19], Rep. Schneider, Bradley Scott [D-IL-10], Rep. Matsui, Doris O. [D-CA-7], Rep. Lynch, Stephen F. [D-MA-8], Rep. Ivey, Glenn [D-MD-4], Rep. DeSaulnier, Mark [D-CA-10], Rep. Swalwell, Eric [D-CA-14], Rep. Carter, Troy A. [D-LA-2], Rep. Cohen, Steve [D-TN-9], Rep. Neguse, Joe [D-CO-2], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Craig, Angie [D-MN-2], Rep. Morrison, Kelly [D-MN-3], Rep. Moore, Gwen [D-WI-4], Rep. Chu, Judy [D-CA-28], Rep. Latimer, George [D-NY-16], Rep. McBride, Sarah [D-DE-At Large], Rep. Hoyle, Val T. [D-OR-4], Rep. Stevens, Haley M. [D-MI-11], Rep. Harder, Josh [D-CA-9], Rep. Grijalva, Adelita S. [D-AZ-7]

Recent Actions

2026-02-02: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, House Administration, the Judiciary, and Armed Services, 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.
2026-02-02: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, House Administration, the Judiciary, and Armed Services, 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.
2026-02-02: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, House Administration, the Judiciary, and Armed Services, 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.
2026-02-02: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, House Administration, the Judiciary, and Armed Services, 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.
2026-02-02: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Appropriations, House Administration, the Judiciary, and Armed Services, 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.
2026-02-02: Introduced in House
2026-02-02: Introduced in House

Bill Versions

True Shutdown Fairness Act — issued 2026-02-02 — PDF (13 pages)