H.R. 7137 — Shutdown Fairness Act

This section establishes automatic appropriations, for FY2026 and each fiscal year thereafter, to provide standard employee compensation to covered employees of any federal agency (including legislative, judicial, executive branches, Armed Forces, reserves, and District of Columbia public employers) and payments to covered contractors during any lapse in regular appropriations (i.e., government shutdown). Covered employees include all agency personnel employed or offered employment before the lapse began, without regard to furlough or excepted status; covered contractors are those required to support such employees and perform work during the lapse under Antideficiency Act exceptions (31 U.S.C. §1341). Agency heads must pay covered employees within 7 days of enactment for any ongoing lapse or on regular pay dates thereafter. (Thus, this eliminates delayed backpay during shutdowns.) Such funds terminate upon enactment of full-year or continuing appropriations (even if providing zero funding for these purposes); may not be used for already-paid periods, during continuing resolutions, or transferred; and must be charged against subsequent appropriations when enacted.