[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7322 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 7322
To provide for appropriations to pay Federal employees and contractors
during periods of lapses in appropriations in fiscal year 2026, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 2, 2026
Mr. Walkinshaw (for himself, Mr. Beyer, Ms. Norton, Mr. Raskin, Mr.
Subramanyam, Mr. Mfume, and Mr. Vindman) introduced the following bill;
which was 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
_______________________________________________________________________
A BILL
To provide for appropriations to pay Federal employees and contractors
during periods of lapses in appropriations in fiscal year 2026, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``True Shutdown Fairness Act''.
SEC. 2. PAYMENT OF EMPLOYEES AND CONTRACTORS DURING SHUTDOWNS.
(a) Definitions.--In this section--
(1) the term ``agency''--
(A) means each authority of the executive,
legislative, or judicial branch of the Government of
the United States; and
(B) includes each District of Columbia public
employer described in clause (i) or (ii) of section
1341(c)(1)(B) of title 31, United States Code (as in
effect on the day before the date of enactment of this
Act);
(2) the term ``contract employee'' means an employee of a
contractor for whom a lapse in regular appropriations could
suspend, delay, or interrupt (or, if there is an ongoing lapse
in regular appropriations on the date of enactment of this Act,
for whom the lapse in regular appropriations suspended,
delayed, or interrupted) all or part of the work of the
applicable contract, or could stop (or stopped) all or part of
the work called for in that contract, including--
(A) a service employee, as defined in section
6701(3) of title 41, United States Code, except that an
individual covered under this subparagraph includes an
individual described in subparagraph (C) of such
section 6701(3);
(B) a laborer or mechanic with respect to whom
section 3142 of title 40, United States Code, applies;
and
(C) an employee of a business concern that holds a
contract, subcontract, or other agreement with an
agency that provides for services or supplies,
including a service contract under chapter 67 of title
41, United States Code;
(3) the term ``covered employee''--
(A) means each employee of an agency, without
regard to whether, for any portion of the period
beginning on October 1, 2025, and ending on September
30, 2026--
(i) the head of that agency determined that
the individual was an excepted employee or an
employee performing emergency work; or
(ii) the individual was subject to
furlough;
(B) includes--
(i) a member of the Armed Forces on active
duty; and
(ii) a member of a reserve component who,
during a lapse in regular appropriations with
respect to the applicable agency, performs
active service or inactive duty training; and
(C) only includes an individual described in
subparagraph (A) or (B) who was an employee or member
on, or had accepted an offer of employment with the
agency or had enlisted in or accepted an appointment to
the Armed Forces (including a reserve component) on or
before, the day before the date on which the applicable
lapse in regular appropriations began;
(4) the term ``lapse in regular appropriations'', with
respect to an agency, means any period during which interim or
full-year appropriations for fiscal year 2026 are not in effect
for the agency; and
(5) the term ``standard employee compensation'' means, with
respect to a covered employee or a contract employee, the
standard rate of basic pay, allowances, pay differentials,
benefits, and other payments otherwise payable on a regular
basis to the covered employee or contract employee.
(b) Appropriations.--
(1) In general.--For fiscal year 2026, for any lapse in
regular appropriations with respect to an agency, there are
appropriated to the head of the agency, out of any money in the
Treasury not otherwise appropriated, such sums as are necessary
to provide, with respect to the period of the lapse in regular
appropriations--
(A) standard employee compensation to covered
employees of the agency; and
(B) payments to contractors of the agency to
provide standard employee compensation to contract
employees with respect to the agency, which shall only
be used by those contractors to provide standard
employee compensation to those contract employees.
(2) Agency requirement.--The head of each agency to whom
amounts are made available under paragraph (1) shall provide
standard employee compensation to covered employees of the
agency--
(A) if there is a lapse in regular appropriations
ongoing on the date of enactment of this Act, as soon
as is practicable, but not later than 7 days after the
date of enactment of this Act, without regard to--
(i) scheduled pay dates; or
(ii) whether the covered employee was
subject to furlough during such lapse in
regular appropriations; and
(B) with respect to any period of a lapse in
regular appropriations beginning on or after the date
of enactment of this Act, on the regularly scheduled
pay dates of the covered employees.
(c) Price Adjustment.--
(1) In general.--As soon as practicable after the date of
enactment of this Act, the head of each agency shall adjust the
price of any contract described in paragraph (2) to compensate
the applicable contractor for reasonable costs incurred, as
described in paragraph (3), regardless of whether the contract
provides for, or otherwise prohibits, the contractor to incur
those reasonable costs or receive such an adjustment for
incurring those reasonable costs.
(2) Contract described.--A contract is described in this
paragraph if the contract is a contract of an agency for which,
as a result of a lapse in regular appropriations occurring
before the date of enactment of this Act, the contractor--
(A) suspended, delayed, or interrupted all or part
of the work under that contract;
(B) stopped all or any part of the work called for
in the contract; or
(C) with respect to a lapse in regular
appropriations beginning after the date of enactment of
this Act, could take an action described in
subparagraph (A) or (B).
(3) Reasonable costs described.--Reasonable costs described
in this paragraph are costs actually incurred by the applicable
contractor--
(A) to provide standard employee compensation for
the period of the applicable lapse in regular
appropriations, at the standard rate of compensation,
to any contract employee employed by the contractor
who, as a result of that lapse in regular
appropriations--
(i) was furloughed or laid off;
(ii) was otherwise not working;
(iii) experienced a reduction of hours; or
(iv) experienced a reduction in
compensation; or
(B) to restore paid leave taken by any contract
employee described in subparagraph (A) during the
applicable lapse in regular appropriations, if the
contractor required or permitted employees of the
contractor to use paid leave as a result of that lapse
in regular appropriations.
(4) Evidence.--A contractor seeking an adjustment under
paragraph (1) shall provide the head of the applicable agency
any evidence of the reasonable costs incurred by the contractor
described in paragraph (3) as the head of the agency, in
consultation with the Administrator of the Office of Federal
Procurement Policy, considers appropriate.
(d) Termination.--Appropriations and funds made available and
authority granted under subsection (b) shall be available to the head
of an agency until whichever of the following first occurs:
(1) The enactment into law of appropriations for the agency
until the end of fiscal year 2026 (including a continuing
appropriation) that provide amounts for the purposes for which
amounts are made available under subsection (b).
(2) The enactment into law of appropriations for the agency
until the end of fiscal year 2026 (including a continuing
appropriation) without any appropriation for such purposes.
(e) Limitation to Individuals Affected by a Shutdown.--Amounts
provided under subsection (b) may not be used for a purpose described
in subparagraph (A) or (B) of subsection (b)(1) for any portion of a
lapse in regular appropriations for which a covered employee is
provided with standard employee compensation or a contractor is
provided payment to provide a contract employee with standard employee
compensation, respectively, using amounts other than amounts provided
under subsection (b).
(f) Interim Continuing Appropriations.--Appropriations made
available under subsection (b) may not be obligated by the head of an
agency during any period during which continuing appropriations for the
purposes for which amounts are made available under subsection (b) are
in effect for the agency.
(g) Charging to Future Appropriations.--Expenditures made pursuant
to subsection (b) shall be charged to the applicable appropriation,
fund, or authorization whenever an Act in which such applicable
appropriation, fund, or authorization is included is enacted into law.
(h) Limitation on Transfer Authority.--Notwithstanding any other
provision of law (including any appropriation Act), the amounts
provided under subsection (b)--
(1) shall be available solely for a purpose described in
subparagraph (A) or (B) of subsection (b)(1); and
(2) may not be transferred, reprogrammed, obligated, or
expended for any other purpose.
(i) Terms and Conditions.--For fiscal year 2026, standard employee
compensation provided to covered employees, and payments to contractors
to provide standard employee compensation to contract employees,
provided by an agency using amounts provided under subsection (b) shall
be subject to--
(1) the requirements, authorities, conditions, and
limitations applicable with respect to the provision of
standard employee compensation, or payment to contractors,
respectively, by the agency under the Continuing Appropriations
Act, 2026 (division A of Public Law 119-37); or
(2) if an Act is enacted after the date of enactment of the
Continuing Appropriations Act, 2026 (division A of Public Law
119-37) that provides continuing appropriations for fiscal year
2026 for the agency to provide standard employee compensation,
or payment to contractors, respectively, the requirements,
authorities, conditions, and limitations applicable with
respect to the provision of standard employee compensation, or
payment to covered contractors, respectively, by the agency
under that subsequently enacted Act.
(j) Authorization To Obligate and Expend Funds.--Funds appropriated
by this section may be obligated and expended notwithstanding section
15 of the State Department Basic Authorities Act of 1956 (22 U.S.C.
2680) and section 504(a)(1) of the National Security Act of 1947 (50
U.S.C. 3094(a)(1)).
(k) Rules of Construction.--
(1) Standard employee compensation.--This section shall be
construed to provide each covered employee and contract
employee with standard employee compensation for the period of
the lapse in regular appropriations as if the covered employee
or contract employee was performing the duties of the covered
employee or contract employee during the lapse in regular
appropriations.
(2) No change in agency responsibilities.--Nothing in this
section may be construed to require an agency to take any
action that the agency is not required to take under the terms
of a contract during any period during which there is not a
lapse in regular appropriations.
(l) Agency Activities.--
(1) In general.--Covered employees and contract employees
shall perform their typical duties to the maximum extent
practicable during a lapse in regular appropriations.
(2) Other obligations or expenditures.--This section does
not authorize or necessarily imply that an agency or employee
may incur any obligations or expenditures that are not
explicitly authorized by this section.
SEC. 3. LIMITATION ON REDUCTIONS IN FORCE.
(a) Definitions.--In this section--
(1) the term ``agency''--
(A) means each authority of the executive,
legislative, or judicial branch of the Government of
the United States; and
(B) includes each District of Columbia public
employer described in clause (i) or (ii) of section
1341(c)(1)(B) of title 31, United States Code (as in
effect on the day before the date of enactment of this
Act); and
(2) the term ``lapse in regular appropriations'', with
respect to an agency, means any period during which interim or
full-year appropriations for fiscal year 2026 are not in effect
for the agency.
(b) Prohibition.--During a lapse in regular appropriations, none of
the funds made available by this or any other Act may be used to--
(1) propose or implement a reduction in force, or any
similar effort, to permanently reduce the number of employees
employed by an agency; or
(2) place any employee of an agency in administrative leave
for more than 10 work days in any calendar year.
(c) Rule of Construction.--Nothing in this section may be construed
to affect a voluntary separation payment offered to an employee under
section 3523 of title 5, United States Code.
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