Federal workers guaranteed pay during 2026 shutdowns—but contractors get reimbursed too
H.R. 7322 — True Shutdown Fairness Act · Filed by James Walkinshaw (D-VA) · 37 cosponsors · Introduced Feb 2, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill ensures that federal employees, military personnel, and contractors working on federal contracts continue to receive their regular pay during government shutdowns in fiscal year 2026. It appropriates emergency funds to pay these workers and requires agencies to reimburse contractors for wages they paid to their employees during shutdowns. It also prohibits agencies from laying off workers or placing them on extended administrative leave during a shutdown.
Why we flagged it
The bill's core mechanism is ensuring continuous pay for federal workers and contractors during appropriations lapses, with a secondary provision protecting job security. It is fundamentally a worker-protection and government-continuity measure, not a deregulation or subsidy bill.
- Section 2(c) requires agencies to adjust contract prices to reimburse contractors for wages paid during shutdowns, even if contracts prohibit such costs—a mechanism unrelated to the core employee-pay guarantee.
What the text implies
- Section 2(c) price-adjustment mechanism may create incentive for contractors to pay workers during shutdowns (knowing reimbursement is guaranteed), shifting shutdown costs from federal budget to contractor balance sheets temporarily, then back to federal budget via contract adjustments—a cost-shifting rather than cost-saving mechanism.
- The bill applies to FY 2026 only; if shutdowns occur in subsequent years, workers would revert to historical unpaid-leave status unless Congress re-enacts similar protections, creating recurring legislative dependency.
The full analysis lists 4 implications of this text.
Who stands to gain
federal contractors (via price adjustments for wages paid during shutdowns); federal employees (via guaranteed pay continuity); military personnel (via guaranteed pay continuity)