New 'Shutdown Efficiency Act' Allows Immediate Federal Property Sales to Fund Essential Workers—But Eliminates Back Pay

When the government shuts down, it’s usually a chaotic, costly mess. The Government Shutdown Efficiency Act is an attempt to create a financial escape hatch, but it comes with some serious fine print, especially for federal employees and the public.

The President’s Emergency Real Estate Authority

This bill essentially gives the President a one-time, emergency credit card backed by federal real estate whenever Congress fails to pass a budget and a funding lapse occurs. Section 2 grants the authority to sell any federal real property during a partial or full shutdown, bypassing the usual, often lengthy, procedures required under Chapter 33 of Title 31. This is a massive shift in power, allowing the executive branch to liquidate assets quickly and without the typical public oversight or competitive bidding processes.

The money raised from these quick sales isn't meant to keep the lights on everywhere. It’s strictly designated to pay the salary and expenses of federal officers and employees who are exempted from furlough—meaning those deemed essential for emergencies, safety of human life, or protection of property. Think TSA agents, border patrol, or certain military personnel.

The Back Pay Trade-Off

Here’s where the bill directly impacts the people who keep the government running during a crisis. If you’re one of those essential workers—a member of the Armed Forces or a civilian employee—and you get paid using the funds from these property sales, the bill explicitly states you will not receive back pay under Section 1341(c) of Title 31.

Currently, when a shutdown ends, all furloughed and essential employees typically get paid retroactively for the time they missed or worked. This bill creates two classes of essential workers: those paid via asset sales (no back pay) and everyone else. For a working parent or a young service member relying on every paycheck, losing the guarantee of back pay after a shutdown could create significant financial uncertainty, even if they get paid during the lapse itself.

Who Gets the Land and Where Does the Money Go?

While the primary goal is funding essential personnel, the bill includes two notable provisions regarding the use of the funds and who can buy the property.

First, Section 3 imposes a national security restriction: the President cannot sell any federal property to four specific foreign adversary countries: the Democratic People's Republic of Korea, the People's Republic of China, the Russian Federation, and the Islamic Republic of Iran. This also applies to any entity “substantially controlled” by those nations. This is a clear move to prevent valuable U.S. assets from falling into rival hands during a moment of fiscal weakness.

Second, the bill protects property held in trust for Indian Tribes, explicitly excluding it from the definition of sellable property. This ensures that a shutdown doesn't become an excuse to liquidate sovereign tribal lands.

Finally, there's a highly unusual clause in Section 2 stating that funds from these sales may be used for the purchase of Greenland by the United States. While any funds received after the shutdown ends must go toward deficit reduction, this specific inclusion suggests the President could use this emergency authority for highly speculative or non-essential purposes, raising questions about the scope and intent of this new power.