Sponsors (38)
Official title: To appropriate funds for pay and allowances of Federal employees, contract employees, and members of the Armed Forces during a lapse in appropriations, and for other purposes.
Introduced January 16, 2026 by Dustin Johnson · Last progress January 16, 2026
The bill guarantees pay and prompt back pay for federal employees and payments for covered contractors during funding gaps while preserving budget accounting, but it increases taxpayer costs, administrative complexity, and could lessen Congress's urgency to timely fund the government and create pressure on workers.
Federal employees (including excepted, emergency, and furloughed staff) will receive pay continuity during funding lapses and will get back pay disbursed within 7 days if a lapse is ongoing at enactment.
Government contractors required to work during a lapse will be eligible to receive payment from Treasury funds, reducing unpaid work and contract disruptions.
Agencies and programs will have expenditures charged to the appropriate appropriation once enacted, preserving normal budgetary accounting and program integrity.
Taxpayers will likely face higher federal spending because the Treasury will permanently fund employee pay and contractor payments during funding gaps.
The public and federal operations may experience longer or more frequent funding gaps because the permanent backstop could reduce Congress's urgency to pass regular appropriations.
Federal agencies, contractors, and administrators will face added administrative complexity and reconciliation burdens due to overlap with existing continuing appropriations and Treasury-funded payments.
Based on analysis of 2 sections of legislative text.
Permanently appropriates such sums as necessary to pay covered federal employees and qualifying contractors for work during any lapse in regular appropriations starting FY2026.
Provides a permanent appropriation so federal employees, certain military personnel, and contractors who must work during a funding lapse are paid for the period of any lapse in regular appropriations. It defines who is covered and what counts as standard compensation, and authorizes payment of such sums as are necessary from the Treasury each fiscal year starting FY2026. Covers executive, legislative, and judicial branch employees (including certain D.C. public employer elements), active-duty and eligible reserve members who perform duty during a lapse, and contractors required to work to support those employees. It establishes terms but does not change other statutes' operative text beyond making the permanent appropriation and definitional rules for application during appropriations gaps.