Shutdown Fairness Act Guarantees Pay for Essential Federal Workers Starting in FY 2026

The Shutdown Fairness Act aims to end one of the most frustrating side effects of government funding lapses: essential federal employees being forced to work without pay. Starting in fiscal year 2026, this legislation creates an automatic funding mechanism to ensure that federal workers deemed "excepted"—meaning they must work during a shutdown—get their salaries and allowances on time.

The Automatic Paycheck Guarantee

If Congress fails to pass an agency’s budget, this bill mandates that the Treasury Department automatically sets aside the necessary funds to cover the payroll for these excepted employees. Think of it as an emergency escrow account for essential services. This means that if you’re a TSA agent, an air traffic controller, or a Border Patrol agent required to show up, your paycheck is guaranteed, regardless of the political deadlock in Washington. This funding stream continues until Congress passes either the full annual budget or a temporary funding bill (a continuing resolution).

Who Gets Paid and Who Doesn't

This is where the fine print matters. The bill defines an "excepted employee" as anyone an agency head requires to work during a shutdown for emergency purposes. Crucially, the bill also extends this guarantee to contractors who support those essential employees and are required to work during the lapse. For a contractor supporting, say, IT infrastructure for air traffic control, this is a huge step toward financial stability during uncertain times. However, the definition relies entirely on the agency head’s call, which is a little vague. There’s no clear, objective standard for what constitutes "emergency work," leaving room for agencies to potentially over-designate staff to ensure their teams get paid.

The Catch for the Rest of the Federal Workforce

While this is a massive win for essential workers, it’s important to note who doesn't benefit immediately: the vast majority of federal employees who are furloughed or designated as non-excepted. If you’re an office worker or analyst deemed non-essential, you still won’t get paid during the shutdown, though you typically receive back pay once the government reopens. This bill guarantees pay for those who are forced to work, but it doesn't solve the financial stress for the rest of the federal workforce who are told to stay home without income.

Impact on the Budget Process

This automatic appropriation creates a mandatory spending mechanism outside of the usual appropriations process, meaning taxpayers are on the hook immediately if a shutdown occurs. Once the regular budget or continuing resolution is finally passed, the agency must retroactively charge those shutdown payroll costs against the new, regular funding. While the goal is fairness for essential workers, this mechanism essentially removes one of the immediate, public-facing costs of a shutdown—the financial hardship of essential workers—which some might argue reduces the pressure on Congress to pass a budget on time.