Sponsors (33)
The bill secures pay and reduces service disruption for federal workers and contractors during funding lapses and preserves budget accounting, but shifts costs to taxpayers, may lessen pressure on Congress to pass appropriations promptly, and adds administrative and worker-pressure risks.
Federal employees who are excepted, emergency, or furloughed will receive pay continuity and prompt back pay for work performed during funding lapses (with agencies required to provide back pay within seven days if a lapse is ongoing at enactment).
Government contractors required to work during a funding lapse can be paid from Treasury funds, reducing unpaid labor and contract disruption.
Agencies must charge expenditures to the appropriate appropriation once enacted, preserving normal budgetary accounting and program integrity.
Taxpayers will likely face increased federal outlays because the Treasury will fund pay and contractor payments during future funding gaps.
Creating a permanent Treasury backstop could reduce congressional urgency to pass regular appropriations, potentially prolonging funding gaps and shifting political incentives.
Treasury-funded payments may overlap or complicate interactions with existing continuing appropriations, requiring administrative reconciliation and creating implementation complexity for agencies and contractors.
Based on analysis of 2 sections of legislative text.
Permanently appropriates funds starting FY2026 to pay covered federal employees’ regular compensation and to pay covered contractors for work during funding lapses.
Introduced January 16, 2026 by Dustin Johnson · Last progress January 16, 2026
Provides a permanent Treasury appropriation starting in fiscal year 2026 to pay federal employees and certain contractors for work performed during any lapse in regular appropriations. It defines who counts as a covered employee and covered contractor, which agencies are included, what counts as standard compensation, and includes certain active duty and reserve service members who work during a lapse. The measure covers employees who were excepted/emergency or furloughed between October 1, 2025 and enactment, limits coverage to people employed/enlisted/appointed before the lapse, and requires agency determinations that pre‑payment is permissible under applicable law before contractor payments are made.