Sponsors (10)
The bill provides targeted reimbursements and a dedicated fund to help federal employees, contractors, and state/tribal governments cover shutdown-related costs, but it does not guarantee timely payment without future appropriations and increases federal fiscal and administrative burdens.
Federal employees (including furloughed and excepted staff) and affected federal contractors can be reimbursed for direct shutdown-related costs (e.g., loan and credit-card fees, fines) incurred after Oct 1, 2025 once the lapse ends.
States, territories, and tribal governments that continued federal-assistance benefits during a shutdown will receive reimbursement for qualifying expenditures, with payments required within 90 days after the lapse ends.
Creates a dedicated Reserve Fund to hold appropriations for employee shutdown reimbursements, providing a defined account intended to speed payment when Congress funds it.
Payments and reimbursements depend on future Congressional appropriations, so employees, contractors, and state/tribal governments could still face delays, partial payments, or no payments if Congress does not fund the program.
Establishing reimbursements and a Reserve Fund increases federal spending and could raise the deficit or require offsetting spending cuts or higher taxes if not fully offset.
Creates administrative burden for Treasury and state/tribal governments: claims, documentation, and approval processes (with a one-year filing window) could strain resources and delay payments.
Based on analysis of 2 sections of legislative text.
Establishes Treasury-administered reimbursement for covered employee shutdown costs and state payments for federal-assistance benefits for the Oct 1, 2025 lapse and later qualified lapses, and creates a Reserve Fund to hold appropriations.
Official title: To amend title 31, United States Code, to reimburse employees of the Federal Government and the District of Columbia, Federal contractors, and the States for certain costs incurred as a result of a Government shutdown, and for other purposes.
Introduced September 30, 2025 by Steven Horsford · Last progress September 30, 2025
Requires the Treasury to reimburse federal workers for certain costs they incur when a lapse in appropriations (a government shutdown) begins on or about October 1, 2025, and for later lapses of 14 days or longer if Congress provides appropriation. It also reimburses States that pay for federal-assistance benefits during such lapses and creates a Reserve Fund in the general fund of the Treasury to hold appropriations for paying covered employees’ shutdown costs for lapses after the October 1, 2025 lapse. Establishes definitions, an application and documentation process administered by the Secretary of the Treasury (including a 1-year window to apply), and timing rules that require States to be reimbursed within 90 days after the lapse ends for qualifying expenditures. Payments from the Reserve Fund are subject to the availability of appropriations.