Sponsors (26)
Introduced January 16, 2026 by Dustin Johnson · Last progress January 16, 2026
The bill ensures continuity of pay and essential contracted services during funding gaps, but shifts costs to taxpayers, may reduce incentives for timely appropriations, and creates administrative and rule-bound constraints for agencies and employees.
Federal employees (including those furloughed) and active-duty service members/reservists who perform duty during a lapse will receive their regular pay via automatic Treasury funding, preserving income continuity.
Government contractors required to work during a funding lapse can be paid for required work, helping preserve critical contracted services and continuity of operations.
Agencies get an automatic funding backstop during shutdowns that reduces administrative disruption and allows essential payroll and related actions to continue within about a week of an ongoing lapse.
Taxpayers could face additional costs because the Treasury automatically funds federal pay and contractor payments during future funding gaps.
Automatic payments may reduce political and fiscal pressure on Congress to pass timely appropriations, which could prolong funding lapses in the future.
Agencies and payroll offices will face added administrative burden to prevent duplication of pay and to track and reconcile charges to final appropriations after the lapse ends.
Based on analysis of 2 sections of legislative text.
Automatically provides whatever funds are needed from the Treasury to pay federal employees, active-duty service members on duty, reservists on training, and covered government contractors during any lapse in regular agency appropriations starting in fiscal year 2026. Agencies must pay employees for lapses already underway promptly (no later than 7 days after enactment) and for future lapses on normal pay dates; payments are limited to standard employee compensation and required contractor work and include rules to avoid double payment. The authority remains available until Congress enacts appropriations that cover those pay items for the fiscal year. Payments for later years must follow the same rules and limitations that applied to the pay immediately before the lapse; funds may not be reprogrammed or used for other purposes.