PolicyBrief
S. 3012
119th CongressOct 23rd 2025
Shutdown Fairness Act
SENATE FAILED

This bill guarantees that essential government employees, including active-duty military, will receive their regular pay during a government funding lapse beginning in fiscal year 2026.

Ron Johnson
R

Ron Johnson

Senator

WI

LEGISLATION

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

When Congress hits an impasse and the government shuts down, non-essential workers get sent home without a paycheck, but the essential folks—the ones keeping airports running or processing emergency claims—still have to show up. The Shutdown Fairness Act aims to fix the financial uncertainty for those essential workers by guaranteeing they get paid on time, even during a funding lapse.

The Automatic Payroll Guarantee

Starting in Fiscal Year 2026 (which begins October 1, 2025), this bill automatically sets aside money from the Treasury to cover the pay, allowances, and benefits for specific groups of employees during a shutdown. Essentially, if Congress hasn't passed a budget, the paychecks for these workers are funded immediately. This guarantee applies to 'Excepted Employees,' which the bill defines broadly: federal personnel who must work during the lapse, their supporting contractors, and all active duty members of the Armed Forces (SEC. 2).

This is a big deal for continuity. Imagine a park ranger or a TSA agent who is deemed essential—they won't have to worry about whether they can pay rent while they’re working without pay. The bill ensures that the critical functions of government, the ones that keep things safe and operational, don't grind to a halt because the people doing the work can't afford to live. Once Congress finally passes a budget or a new funding resolution, the money that was automatically paid out gets charged against that new official appropriation.

Who Gets the “Excepted” Paycheck?

The key to this bill is the definition of the 'Excepted Employee.' This isn't a blanket rule for all federal workers. It only covers those who an agency head decides must work during the lapse—the essential or emergency workers, as defined by the Office of Personnel Management (OPM). While the intent is clear—pay the people doing critical work—the bill gives significant discretion to agency heads to determine who qualifies (SEC. 2. Defining Who Gets Paid When Funding Stops). This could lead to some inconsistencies across agencies. For instance, the head of one agency might classify a certain IT support role as essential, while another agency might not, meaning two people doing similar work could have very different experiences during a shutdown.

The Trade-Off for Non-Essential Workers

For the millions of federal employees who are not deemed essential and are furloughed, this bill doesn't change much. They still won't be paid during the shutdown itself. While Congress usually passes legislation after the fact to provide back pay for furloughed employees, that process can take weeks. This bill highlights the divide: essential workers get stability and immediate pay, while non-essential workers still face financial uncertainty until the political stalemate is resolved. For the average federal worker—say, a data analyst or a policy researcher—this bill means their essential colleagues are covered, but their own financial stress during a shutdown remains.

This automatic funding also comes with a cost to taxpayers. By creating a mandatory appropriation for these payroll expenses during a lapse, the bill ensures these costs are incurred immediately and outside the normal budget process, regardless of the ongoing budgetary disagreements. While it solves a major pain point for essential workers, it doesn't solve the underlying problem of government shutdowns, it just makes sure the lights stay on and the essential personnel get paid while the political drama plays out.