The bill keeps pay flowing and critical government operations running through funding gaps—protecting workers and services—but increases taxpayer exposure, expands agency discretion, and may weaken incentives for timely congressional appropriations.
Federal employees designated as "excepted" will be paid and receive allowances during funding lapses beginning in FY2026, reducing lost income for those workers.
Provides predictable authority for agencies to maintain essential operations during funding gaps, reducing abrupt interruptions to government services.
Contractors required to work during funding lapses (when designated) can be paid, which helps reduce disruption to critical services delivered through contractor staff.
By insulating some pay and operations from shutdown effects, the bill could reduce political and budgetary pressure on Congress to pass regular appropriations on time.
Taxpayers may face additional outlays when the Treasury advances funds to cover pay and operations during funding gaps.
Expands agency head discretion to determine who qualifies as an "excepted employee," risking inconsistent or unfair application across agencies and potential unequal treatment of workers.
Based on analysis of 2 sections of legislative text.
Establishes a permanent Treasury appropriation to pay excepted federal employees and required contractors during funding lapses beginning in FY2026.
Official title: Appropriate funds for pay and allowances of excepted Federal employees, and for other purposes.
Introduced October 9, 2025 by Ron Johnson · Last progress October 9, 2025
Creates a permanent funding mechanism so that "excepted employees" who must work during a federal funding lapse (including agency-designated excepted or emergency employees and contractors who support them) are paid. Beginning in fiscal year 2026, the Treasury may supply whatever sums are necessary to pay those workers during a lapse, with those amounts later charged to the relevant agency appropriation once Congress enacts appropriations for the year or a continuing resolution.