H.R. 5628 — Pay Workers What They’ve Earned Act

This section amends the Antideficiency Act (31 U.S.C. 1341) to require reimbursement of "shutdown costs" (i.e., direct financial costs such as loan or credit card expenses, fees, fines, or interest incurred due to lost salary from a lapse in appropriations) for "covered employees," defined to include furloughed employees of the federal government or District of Columbia public employers (as defined in existing subsection (c)), excepted employees required to work during the lapse, and federal contractors (or their employees) placed on unpaid leave. (1) For the lapse in appropriations beginning on or about October 1, 2025, the Treasury Department must reimburse covered employees' shutdown costs at the earliest date possible after enactment of this provision, subject to appropriations ending the lapse. (2) For any subsequent lapse of 14 days or longer, the Treasury must reimburse such costs at the earliest date possible after the lapse ends, subject to availability of appropriations, upon application by covered employees within one year and with required documentation. (3) States (broadly defined to include territories and Indian tribes) must be reimbursed within 90 days after any lapse of 14 days or longer (including the 2025 lapse) for state expenditures on assistance programs normally funded by the federal government, excluding items reimbursed under other laws (e.g., unemployment compensation), upon application within one year. (4) This section further establishes the Reserve Fund for Employees Affected by Government Shutdowns in the Treasury general fund, to consist of post-enactment appropriations available, subject to availability, to pay covered employees' shutdown costs for lapses after the 2025 lapse. (As background, the Antideficiency Act generally prohibits obligating unappropriated funds; existing subsection (c) requires backpay for furloughed federal and certain DC employees and pay for excepted workers after lapses beginning on or after December 22, 2018. Thus, this provision expands relief to additional costs, contractors, and states.)