Help FEDS Act
- Bill Number
- S. 2948
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-09-30: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-03-30T18:47:25Z
AI-Generated Summary
Purpose
The "Help Federal Employees During Shutdowns Act" (S. 2948), also known as the "Help FEDS Act," aims to provide financial support to certain federal employees who must work without pay during government shutdowns caused by lapses in appropriations. It requires states to offer unemployment compensation (temporary payments to eligible workers who lose income) to these employees for fiscal years 2026 and 2027, while ensuring the federal government fully reimburses the states.
Key Provisions
- Eligibility for Benefits: States must allow "excepted federal employees" (those required to perform essential emergency work during a shutdown but not paid due to lack of funding) to apply for and receive unemployment compensation for any affected week in fiscal years 2026 or 2027.
- Repayment Requirement: If an employee later receives back pay for the shutdown period, they must repay the unemployment compensation received to the state. Unrepaid amounts are treated as overpayments (excess benefits that must be returned) and recovered using the state's standard methods for handling such cases.
- State Fund Management: All repaid or recovered funds must be deposited into the state's unemployment fund (a dedicated account for unemployment benefits).
- Federal Reimbursement: The U.S. Department of the Treasury, guided by certifications from the Department of Labor, will pay states 100% of the unemployment benefits provided to these employees, plus any extra administrative costs (e.g., processing claims). Funds come from the federal Unemployment Trust Fund (a national reserve for unemployment programs).
- Definitions:
- "Excepted federal employee" refers to workers officially designated as essential under federal law (31 U.S.C. § 1341(c)(1)) who are unpaid during a shutdown.
- "Emergency work" is defined by the Office of Personnel Management (the federal agency overseeing employee policies).
Significant Changes to Existing Law
- Amends Section 303 of the Social Security Act (which sets federal requirements for state unemployment programs) by adding a new subsection (n). This creates a temporary mandate (limited to fiscal years 2026–2027) for states to extend unemployment benefits to unpaid essential federal workers during shutdowns—a provision not explicitly required before.
- Introduces full federal reimbursement for these benefits and costs, shifting the financial burden from states to the federal Unemployment Trust Fund, unlike typical state-funded unemployment programs where federal support is partial.
Potential Impacts
- On Government Agencies: State unemployment offices will need to process additional claims during shutdowns, increasing short-term administrative workload, but with full federal coverage of costs. Federal agencies like the Departments of Labor and Treasury will handle certifications and payments, potentially straining the Unemployment Trust Fund if shutdowns are prolonged.
- On Citizens: Essential federal employees (e.g., those in national security, air traffic control, or border protection) gain access to income support during unpaid work periods, reducing personal financial hardship. Other citizens are indirectly unaffected, though it could stabilize federal operations by supporting worker morale.
- On International Relations: Minimal direct impact, though smoother government functioning during shutdowns might help maintain U.S. commitments abroad (e.g., diplomacy or defense).
Main Stakeholders Affected
- Federal Employees: Primarily "excepted" workers (about 10–20% of the federal workforce in past shutdowns) who perform essential duties without immediate pay.
- State Governments: Unemployment insurance agencies must comply with new processing and repayment rules.
- Federal Government: Departments of Labor, Treasury, and Personnel Management oversee implementation; Congress and the executive branch benefit from reduced shutdown disruptions.
- Taxpayers: Indirectly affected through use of the Unemployment Trust Fund, funded by federal taxes and employer contributions.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes a clear, enforceable requirement on states under the Social Security Act, with built-in safeguards against double payments (via repayment rules). The temporary two-year scope limits long-term commitments but could set a precedent for future expansions.
- Constitutional: Aligns with Congress's spending power (Article I, Section 8) by directing federal funds to support employees during funding lapses, without raising separation-of-powers issues since it targets executive branch workers.
- Political: Addresses recurring criticism of government shutdowns' human costs (e.g., the 2018–2019 shutdown affected over 800,000 workers). By limiting to 2026–2027, it may encourage bipartisan support amid election-year budget debates, but could face opposition over adding to federal spending or mandating state actions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Alsobrooks, Angela D. [D-MD]
Cosponsors (6)
Sen. Van Hollen, Chris [D-MD], Sen. Kaine, Tim [D-VA], Sen. Warner, Mark R. [D-VA], Sen. Duckworth, Tammy [D-IL], Sen. Schatz, Brian [D-HI], Sen. Blumenthal, Richard [D-CT]
Recent Actions
- 2025-09-30: Read twice and referred to the Committee on Finance.
- 2025-09-30: Introduced in Senate
Bill Versions
- Help Federal Employees During Shutdowns Act — issued 2025-09-30 — PDF (4 pages)