Help FEDS Act

Summary

Requires States to let certain Federal employees who are ordered to work during a lapse in appropriations collect unemployment benefits for weeks they perform unpaid emergency work in fiscal years 2026 and 2027. The federal government must fully reimburse States for those benefit payments and related administrative costs, but employees who later receive retroactive pay must repay the benefits to the State (or have them recovered as overpayments).

• Temporarily allows certain unpaid Federal employees who work during shutdowns to claim unemployment for weeks they perform emergency duties in FY2026 and FY2027.
• Employees who later receive retroactive Federal pay must repay unemployment benefits; unrepaid amounts are treated as State overpayments.
• The Secretary of Labor certifies benefits paid and administrative costs to the Treasury for reimbursement.
• The Treasury pays 100% of those certified benefits and related administrative expenses from the Federal Unemployment Trust Fund.
• Applies only to workers who are "excepted" (required to work during a lapse and not being paid because of the lapse).
• States administer claims and recovery of overpayments under their existing unemployment rules.
• The change is time-limited to two fiscal years (2026 and 2027).
• Reduces State financial risk by fully reimbursing benefits and admin costs related to this provision.