Sponsors (10)
The bill reduces financial harm from prolonged shutdowns for federal workers and states by authorizing reimbursements and a reserve fund, but relies on later appropriations and administrative claims processes that can delay payments and shift costs or trade-offs to taxpayers and some states.
Federal employees and government contractors would be reimbursed for shutdown-related out-of-pocket costs (e.g., loan/credit card fees, interest) for the Oct 1, 2025 lapse and for future lapses of 14+ days, reducing direct personal financial harm.
State governments that front emergency benefits during prolonged shutdowns would be reimbursed within 90 days, reducing strain on state budgets and restoring state finances more quickly.
Creates a dedicated Reserve Fund to provide a funding source for employee reimbursements, improving predictability that funds will be available when appropriations resume.
Federal employees and government contractors may still face short-term cash-flow gaps because reimbursements are paid only after a lapse ends and may depend on later appropriations.
Reimbursements and the Reserve Fund require new appropriations, which could increase federal spending or force trade-offs in future budgets that affect taxpayers.
Covered employees and state governments must apply to Treasury with documentation within one year, creating administrative burdens that could delay payments or lead to denials.
Based on analysis of 2 sections of legislative text.
Introduced September 30, 2025 by Steven Horsford · Last progress September 30, 2025
Creates a federal reimbursement program to pay certain costs that furloughed federal employees, District of Columbia public employer employees, affected federal contractors (and their employees), and States incur because of government shutdowns. The law defines who qualifies, what costs are reimbursable (for example loan, credit card fees, fines, and interest arising from missed payments), sets application and payment rules, and establishes a reserved fund to make payments, all subject to future appropriations. For the lapse beginning on or about October 1, 2025 covered employees may be paid for eligible shutdown costs as soon as practicable after enactment (and after appropriations end the lapse). For later lapses of 14 days or longer, covered employees and States may be reimbursed under the same framework, with States entitled to reimbursement for assistance they provided within 90 days after a lapse ends. Applications must be filed with the Treasury within one year after the lapse ends, and payments are subject to available appropriations and administrative approval by the Secretary of the Treasury.