Sponsors (10)
The bill would protect federal workers, contractors, and state/tribal governments from shutdown-related costs by providing reimbursements and a dedicated reserve fund, but those protections depend on future appropriations and impose additional fiscal and administrative costs.
Federal employees (including furloughed and excepted staff) and affected federal contractors can be reimbursed for direct shutdown-related costs (e.g., loan/credit-card fees, fines) incurred during a lapse beginning Oct 1, 2025.
State, territorial, and tribal governments that temporarily cover federally assisted benefits during a shutdown will be reimbursed for qualifying expenditures within 90 days after the lapse ends, reducing fiscal strain on local governments and maintaining benefits for residents.
Creates a dedicated Reserve Fund to hold appropriations for employee shutdown reimbursements, providing a defined account intended to speed payment processing when Congress provides funding.
Payments and reimbursements are contingent on future congressional appropriations, so employees, contractors, and States may still face delays, uncertainty, or unpaid claims if Congress does not fund the program.
Establishing reimbursements and a reserve fund increases federal spending and could raise the deficit or force offsetting cuts or tax increases if the costs are not fully offset.
Administering the reimbursement program will create paperwork and administrative burdens (applications, documentation, approvals) for Treasury and for States, requiring state resources to compile claims within a one-year window and potentially delaying payments.
Based on analysis of 2 sections of legislative text.
Establishes reimbursement to eligible federal employees and to States for certain shutdown-related costs and creates a Treasury reserve fund to pay such costs, subject to appropriations.
Introduced September 30, 2025 by Steven Horsford · Last progress September 30, 2025
Requires the federal government to reimburse certain federal employees for costs they incur during a government shutdown that begins on or about October 1, 2025, and sets rules for reimbursing States that pay federal-assistance benefits during such shutdowns. Creates a Treasury reserve fund to receive appropriations and directs the Secretary of the Treasury to run an application and approval process for reimbursements, with a one-year window to apply and time limits for State payments.