S. 3039 — True Shutdown Fairness Act

This section appropriates, for fiscal year 2026, such sums as necessary from the Treasury to the head of each executive, legislative, or judicial branch agency experiencing a lapse in appropriations beginning October 1, 2025 (i.e., covered lapse), to provide standard pay rates, allowances, differentials, benefits, and other regular payments to covered individuals—which include all agency employees (furloughed or excepted), supporting contractors, active-duty Armed Forces members, and reservists performing active service or inactive-duty training during the lapse—until a termination date when appropriations are enacted for such purposes or otherwise. Such funds are available until the termination date; expenditures are charged to applicable future appropriations when enacted; and the provision is retroactive to September 30, 2025. (Thus, the measure ensures continuous pay during a potential government shutdown, with later reimbursement from regular appropriations.)

This section prohibits, during a covered lapse in appropriations, the use of appropriated funds by an agency to (1) propose or implement a reduction in force, or any similar effort, to permanently reduce the number of agency employees; or (2) place any agency employee on administrative leave for more than 10 work days in any calendar year. Nothing in this section affects voluntary separation incentive payments under 5 U.S.C. 3523 (i.e., lump-sum payments to eligible employees who voluntarily separate, equal to the lesser of the amount under 5 U.S.C. 5595(c) or $25,000 as determined by the agency head).