Congress pays federal workers during shutdown, bars layoffs

What it does

This bill appropriates emergency funds to pay federal employees their regular salaries, allowances, and benefits during the government shutdown that began October 1, 2025, retroactively covering all workers—whether furloughed or deemed essential—plus military personnel and contractors supporting them. It also prohibits agencies from conducting layoffs or placing employees on extended administrative leave during the shutdown.

Why we flagged it

The bill's core function is to ensure federal employees and military personnel receive uninterrupted pay during a government shutdown and to prevent agencies from using the shutdown as a pretext for workforce reductions. This is a straightforward emergency appropriation with protective labor provisions.

What the text implies

• Contractors supporting federal employees are explicitly included as 'covered individuals,' meaning private firms providing services to agencies will be paid from this emergency appropriation—a significant but unstated financial commitment.
• The retroactive effective date (Sept 30, 2025) means the bill covers the entire shutdown period from day one, creating a complete wage replacement rather than a partial catch-up, which may exceed typical emergency-appropriation scope.
• The prohibition on reductions-in-force during the shutdown may create a de facto job-protection guarantee that extends beyond the shutdown itself if the termination date is delayed or if agencies interpret the rule broadly.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Federal employees and military personnel regain lost wages during the shutdown, and the bill protects them from being laid off or punished administratively while government is unfunded. The retroactive effective date ensures no gap in pay. Contractors supporting federal work also receive compensation.

Who stands to gain

• federal employees (all agencies)
• active-duty military personnel
• reserve component members
• contractors providing support to federal agencies

Named in the bill

Office of Personnel Management, Executive Branch agencies, Legislative Branch, Judicial Branch, Armed Forces, Reserve components, Title 5 United States Code (federal employee law)

Where it stands

30 cosponsors: 29 Democrats, 1 Independents.

• Oct 23, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Oct 23, 2025 — Referred to Senate Committee on Homeland Security and Governmental Affairs · Congress.gov: “Read twice and referred to the Committee on Homeland Security and Governmental Affairs”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

5 lobbying clients named this bill on 8 disclosure filings across 3 quarters, Dec 2025 to Jun 2026. Those filings disclosed $2,275,000 in lobbying spend. A filing names 33 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 78% of bills with at least one filing.

Chris Van Hollen, the sponsor, reported $81,250 in PAC receipts in the 2026 cycle.

• American Federation of State County and Municipal Employees — $1,320,000 on 2 filings
• Service Employees International Union Ctw-clc — $505,000 on 2 filings
• American Federation of Teachers — $410,000 on 1 filing
• National Active and Retired Federal Employees Association — $40,000 on 1 filing
• Federal Managers Association — $0 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.