True Shutdown Fairness Act

The True Shutdown Fairness Act aims to protect federal employees, military service members, and government contractors from financial instability during potential funding gaps. If enacted, the bill would authorize the Treasury to automatically provide the funds necessary to continue paying standard salaries, benefits, and pay differentials to federal workers during any government shutdown occurring in fiscal year 2026. This would ensure that paychecks are issued on their regular schedules rather than being delayed until a budget agreement is reached.

Beyond federal staff, the proposal seeks to extend similar protections to contract workers. It would require federal agencies to provide funding to contractors so they can continue to pay their employees during a lapse in appropriations. Additionally, the bill would allow agencies to adjust existing contracts to cover reasonable costs incurred because of a shutdown, helping to prevent private-sector layoffs that often result from government funding disputes.

Finally, the bill proposes to prohibit federal agencies from using a shutdown as a justification for "reductions in force," or layoffs. It would also limit the amount of time an employee can be placed on administrative leave during a funding gap. These measures are intended to provide job security and financial certainty for the federal workforce and the private companies that support government operations.