Pay Workers What They’ve Earned Act

The Pay Workers What They’ve Earned Act proposes a system to compensate federal employees, D.C. government workers, and federal contractors for the financial hardships caused by government shutdowns. If enacted, the government would be required to reimburse these individuals for costs directly resulting from a lapse in funding, such as interest on credit cards, loan fees, and late fines incurred because they could not make timely payments due to missing paychecks. For a shutdown beginning around October 1, 2025, these reimbursements would be issued as soon as possible after funding is restored; for future shutdowns lasting at least 14 days, payments would be triggered automatically.

Additionally, the bill aims to protect state governments that step in to fund federal assistance programs during a shutdown. It would require the federal government to repay states for these expenses within 90 days after the shutdown ends, provided the funding lapse lasted at least two weeks. While the bill seeks to provide a financial safety net for workers and states, all reimbursements would remain subject to the availability of future congressional appropriations.