Sponsors (10)
The bill would provide reimbursements and establish a reserve to reduce financial harms from prolonged federal shutdowns for workers, contractors, and states, but those protections are conditional on future appropriations and carry administrative limits and potential costs to taxpayers and some state budgets.
Federal and D.C. public employees and federal contractors placed on unpaid leave can be reimbursed for shutdown-related loan or credit-card fees, fines, or interest for shutdowns beginning Oct 1, 2025.
States (including territories) and Indian Tribes that use state funds to continue assistance during a shutdown of 14 or more days will be reimbursed within 90 days after the lapse ends, helping preserve services to residents.
Creates a dedicated Reserve Fund to hold appropriations for paying shutdown-related costs, which could speed payments when Congress funds it.
All reimbursements and payments are subject to future congressional appropriations, so individuals and governments may not receive timely or guaranteed compensation.
If Congress appropriates funds to cover shutdown costs and state reimbursements, taxpayers could face increased federal spending and associated fiscal impacts.
States that already receive federal reimbursement for certain expenditures are barred from duplicative payments, which could leave some state-incurred costs uncompensated if other federal sources don't cover them.
Based on analysis of 2 sections of legislative text.
Requires Treasury to reimburse eligible furloughed federal employees, certain contractors, and States for specified costs from government shutdowns and creates a reserve fund to pay those costs.
Introduced September 30, 2025 by Steven Horsford · Last progress September 30, 2025
Provides a process for reimbursing people and States harmed by federal government shutdowns. It defines who counts as a covered employee (furloughed federal or D.C. public employer employees, federal contractors placed on unpaid leave, excluding excepted employees who worked), what counts as a shutdown cost (direct costs such as loan/credit-card fees, fines, interest), and requires Treasury to pay those costs for a lapse beginning on or about October 1, 2025, and for future lapses of 14+ days, subject to available appropriations. The bill also lets States that spend money to continue assistance programs during long shutdowns be reimbursed and creates a Reserve Fund in the general fund to receive appropriations to pay shutdown costs.