H.R. 7322

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7322 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7322

To provide for appropriations to pay Federal employees and contractors 
during periods of lapses in appropriations in fiscal year 2026, and for 
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 2, 2026

Mr. Walkinshaw (for himself, Mr. Beyer, Ms. Norton, Mr. Raskin, Mr. 
Subramanyam, Mr. Mfume, and Mr. Vindman) introduced the following bill; 
which was referred to the Committee on Oversight and Government Reform, 
and in addition to the Committees on Appropriations, House 
Administration, the Judiciary, and Armed Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee 
concerned

_______________________________________________________________________

A BILL

To provide for appropriations to pay Federal employees and contractors 
during periods of lapses in appropriations in fiscal year 2026, and for 
other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``True Shutdown Fairness Act''.

SEC. 2. PAYMENT OF EMPLOYEES AND CONTRACTORS DURING SHUTDOWNS.

(a) Definitions.--In this section--
(1) the term ``agency''--
(A) means each authority of the executive, 
legislative, or judicial branch of the Government of 
the United States; and
(B) includes each District of Columbia public 
employer described in clause (i) or (ii) of section 
1341(c)(1)(B) of title 31, United States Code (as in 
effect on the day before the date of enactment of this 
Act);
(2) the term ``contract employee'' means an employee of a 
contractor for whom a lapse in regular appropriations could 
suspend, delay, or interrupt (or, if there is an ongoing lapse 
in regular appropriations on the date of enactment of this Act, 
for whom the lapse in regular appropriations suspended, 
delayed, or interrupted) all or part of the work of the 
applicable contract, or could stop (or stopped) all or part of 
the work called for in that contract, including--
(A) a service employee, as defined in section 
6701(3) of title 41, United States Code, except that an 
individual covered under this subparagraph includes an 
individual described in subparagraph (C) of such 
section 6701(3);
(B) a laborer or mechanic with respect to whom 
section 3142 of title 40, United States Code, applies; 
and
(C) an employee of a business concern that holds a 
contract, subcontract, or other agreement with an 
agency that provides for services or supplies, 
including a service contract under chapter 67 of title 
41, United States Code;
(3) the term ``covered employee''--
(A) means each employee of an agency, without 
regard to whether, for any portion of the period 
beginning on October 1, 2025, and ending on September 
30, 2026--
(i) the head of that agency determined that 
the individual was an excepted employee or an 
employee performing emergency work; or
(ii) the individual was subject to 
furlough;
(B) includes--
(i) a member of the Armed Forces on active 
duty; and
(ii) a member of a reserve component who, 
during a lapse in regular appropriations with 
respect to the applicable agency, performs 
active service or inactive duty training; and
(C) only includes an individual described in 
subparagraph (A) or (B) who was an employee or member 
on, or had accepted an offer of employment with the 
agency or had enlisted in or accepted an appointment to 
the Armed Forces (including a reserve component) on or 
before, the day before the date on which the applicable 
lapse in regular appropriations began;
(4) the term ``lapse in regular appropriations'', with 
respect to an agency, means any period during which interim or 
full-year appropriations for fiscal year 2026 are not in effect 
for the agency; and
(5) the term ``standard employee compensation'' means, with 
respect to a covered employee or a contract employee, the 
standard rate of basic pay, allowances, pay differentials, 
benefits, and other payments otherwise payable on a regular 
basis to the covered employee or contract employee.
(b) Appropriations.--
(1) In general.--For fiscal year 2026, for any lapse in 
regular appropriations with respect to an agency, there are 
appropriated to the head of the agency, out of any money in the 
Treasury not otherwise appropriated, such sums as are necessary 
to provide, with respect to the period of the lapse in regular 
appropriations--
(A) standard employee compensation to covered 
employees of the agency; and
(B) payments to contractors of the agency to 
provide standard employee compensation to contract 
employees with respect to the agency, which shall only 
be used by those contractors to provide standard 
employee compensation to those contract employees.
(2) Agency requirement.--The head of each agency to whom 
amounts are made available under paragraph (1) shall provide 
standard employee compensation to covered employees of the 
agency--
(A) if there is a lapse in regular appropriations 
ongoing on the date of enactment of this Act, as soon 
as is practicable, but not later than 7 days after the 
date of enactment of this Act, without regard to--
(i) scheduled pay dates; or
(ii) whether the covered employee was 
subject to furlough during such lapse in 
regular appropriations; and
(B) with respect to any period of a lapse in 
regular appropriations beginning on or after the date 
of enactment of this Act, on the regularly scheduled 
pay dates of the covered employees.
(c) Price Adjustment.--
(1) In general.--As soon as practicable after the date of 
enactment of this Act, the head of each agency shall adjust the 
price of any contract described in paragraph (2) to compensate 
the applicable contractor for reasonable costs incurred, as 
described in paragraph (3), regardless of whether the contract 
provides for, or otherwise prohibits, the contractor to incur 
those reasonable costs or receive such an adjustment for 
incurring those reasonable costs.
(2) Contract described.--A contract is described in this 
paragraph if the contract is a contract of an agency for which, 
as a result of a lapse in regular appropriations occurring 
before the date of enactment of this Act, the contractor--
(A) suspended, delayed, or interrupted all or part 
of the work under that contract;
(B) stopped all or any part of the work called for 
in the contract; or
(C) with respect to a lapse in regular 
appropriations beginning after the date of enactment of 
this Act, could take an action described in 
subparagraph (A) or (B).
(3) Reasonable costs described.--Reasonable costs described 
in this paragraph are costs actually incurred by the applicable 
contractor--
(A) to provide standard employee compensation for 
the period of the applicable lapse in regular 
appropriations, at the standard rate of compensation, 
to any contract employee employed by the contractor 
who, as a result of that lapse in regular 
appropriations--
(i) was furloughed or laid off;
(ii) was otherwise not working;
(iii) experienced a reduction of hours; or
(iv) experienced a reduction in 
compensation; or
(B) to restore paid leave taken by any contract 
employee described in subparagraph (A) during the 
applicable lapse in regular appropriations, if the 
contractor required or permitted employees of the 
contractor to use paid leave as a result of that lapse 
in regular appropriations.
(4) Evidence.--A contractor seeking an adjustment under 
paragraph (1) shall provide the head of the applicable agency 
any evidence of the reasonable costs incurred by the contractor 
described in paragraph (3) as the head of the agency, in 
consultation with the Administrator of the Office of Federal 
Procurement Policy, considers appropriate.
(d) Termination.--Appropriations and funds made available and 
authority granted under subsection (b) shall be available to the head 
of an agency until whichever of the following first occurs:
(1) The enactment into law of appropriations for the agency 
until the end of fiscal year 2026 (including a continuing 
appropriation) that provide amounts for the purposes for which 
amounts are made available under subsection (b).
(2) The enactment into law of appropriations for the agency 
until the end of fiscal year 2026 (including a continuing 
appropriation) without any appropriation for such purposes.
(e) Limitation to Individuals Affected by a Shutdown.--Amounts 
provided under subsection (b) may not be used for a purpose described 
in subparagraph (A) or (B) of subsection (b)(1) for any portion of a 
lapse in regular appropriations for which a covered employee is 
provided with standard employee compensation or a contractor is 
provided payment to provide a contract employee with standard employee 
compensation, respectively, using amounts other than amounts provided 
under subsection (b).
(f) Interim Continuing Appropriations.--Appropriations made 
available under subsection (b) may not be obligated by the head of an 
agency during any period during which continuing appropriations for the 
purposes for which amounts are made available under subsection (b) are 
in effect for the agency.
(g) Charging to Future Appropriations.--Expenditures made pursuant 
to subsection (b) shall be charged to the applicable appropriation, 
fund, or authorization whenever an Act in which such applicable 
appropriation, fund, or authorization is included is enacted into law.
(h) Limitation on Transfer Authority.--Notwithstanding any other 
provision of law (including any appropriation Act), the amounts 
provided under subsection (b)--
(1) shall be available solely for a purpose described in 
subparagraph (A) or (B) of subsection (b)(1); and
(2) may not be transferred, reprogrammed, obligated, or 
expended for any other purpose.
(i) Terms and Conditions.--For fiscal year 2026, standard employee 
compensation provided to covered employees, and payments to contractors 
to provide standard employee compensation to contract employees, 
provided by an agency using amounts provided under subsection (b) shall 
be subject to--
(1) the requirements, authorities, conditions, and 
limitations applicable with respect to the provision of 
standard employee compensation, or payment to contractors, 
respectively, by the agency under the Continuing Appropriations 
Act, 2026 (division A of Public Law 119-37); or
(2) if an Act is enacted after the date of enactment of the 
Continuing Appropriations Act, 2026 (division A of Public Law 
119-37) that provides continuing appropriations for fiscal year 
2026 for the agency to provide standard employee compensation, 
or payment to contractors, respectively, the requirements, 
authorities, conditions, and limitations applicable with 
respect to the provision of standard employee compensation, or 
payment to covered contractors, respectively, by the agency 
under that subsequently enacted Act.
(j) Authorization To Obligate and Expend Funds.--Funds appropriated 
by this section may be obligated and expended notwithstanding section 
15 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 
2680) and section 504(a)(1) of the National Security Act of 1947 (50 
U.S.C. 3094(a)(1)).
(k) Rules of Construction.--
(1) Standard employee compensation.--This section shall be 
construed to provide each covered employee and contract 
employee with standard employee compensation for the period of 
the lapse in regular appropriations as if the covered employee 
or contract employee was performing the duties of the covered 
employee or contract employee during the lapse in regular 
appropriations.
(2) No change in agency responsibilities.--Nothing in this 
section may be construed to require an agency to take any 
action that the agency is not required to take under the terms 
of a contract during any period during which there is not a 
lapse in regular appropriations.
(l) Agency Activities.--
(1) In general.--Covered employees and contract employees 
shall perform their typical duties to the maximum extent 
practicable during a lapse in regular appropriations.
(2) Other obligations or expenditures.--This section does 
not authorize or necessarily imply that an agency or employee 
may incur any obligations or expenditures that are not 
explicitly authorized by this section.

SEC. 3. LIMITATION ON REDUCTIONS IN FORCE.

(a) Definitions.--In this section--
(1) the term ``agency''--
(A) means each authority of the executive, 
legislative, or judicial branch of the Government of 
the United States; and
(B) includes each District of Columbia public 
employer described in clause (i) or (ii) of section 
1341(c)(1)(B) of title 31, United States Code (as in 
effect on the day before the date of enactment of this 
Act); and
(2) the term ``lapse in regular appropriations'', with 
respect to an agency, means any period during which interim or 
full-year appropriations for fiscal year 2026 are not in effect 
for the agency.
(b) Prohibition.--During a lapse in regular appropriations, none of 
the funds made available by this or any other Act may be used to--
(1) propose or implement a reduction in force, or any 
similar effort, to permanently reduce the number of employees 
employed by an agency; or
(2) place any employee of an agency in administrative leave 
for more than 10 work days in any calendar year.
(c) Rule of Construction.--Nothing in this section may be construed 
to affect a voluntary separation payment offered to an employee under 
section 3523 of title 5, United States Code.
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