Summary

Allows excepted federal employees who perform emergency work during lapses in appropriations in fiscal years 2026 and 2027 to apply for and receive state unemployment benefits for the weeks they work but are not paid. If those employees later receive pay for the same weeks under the Anti‑Deficiency Act, the law requires recovery/repayment rules to prevent double payment. Requires states to permit these payments, and authorizes the Treasury to reimburse states 100% of the benefits paid plus related administrative costs from the Unemployment Trust Fund (section 904(a)). The provision defines which federal workers qualify as "excepted employees" for this purpose.

Key Points

• Excepted federal employees who perform emergency work during appropriations lapses in FY2026 and FY2027 may receive state UI benefits for those weeks if unpaid.
• States are required to permit these unemployment claims under their laws.
• Treasury will reimburse states 100% of benefits paid and related administrative costs from the Unemployment Trust Fund.
• If the employee later receives pay for those weeks under the Anti‑Deficiency Act, benefits previously paid can be recovered or repaid.
• The change is time-limited to fiscal years 2026 and 2027.
• No new separate appropriation is created; reimbursements use existing Unemployment Trust Fund authority.
• The law defines which federal employees qualify (excepted employees not paid due to a lapse in appropriations).
• States and federal agencies will need processes to identify claims, document emergency work weeks, and handle later recoveries.

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