This legislation amends the Social Security Act to ensure that federal employees performing emergency work during government shutdowns receive unemployment compensation. Specifically, it requires state unemployment compensation laws to allow these "excepted Federal employees" to apply for and receive benefits during lapses in appropriations occurring in fiscal years 2026 or 2027. A key provision stipulates that if an excepted federal employee later receives back pay for the period they received unemployment benefits, they must repay the compensation to the state . Any unrepaid compensation will be treated as an overpayment, subject to the state's standard recovery procedures, with all recovered funds deposited into the state's unemployment fund. To support states, the bill mandates that the Secretary of Treasury reimburse states for 100% of the unemployment compensation paid to these federal employees, as well as any additional administrative expenses incurred. These reimbursements will be drawn from the federal Unemployment Trust Fund, ensuring states are not financially burdened by providing these benefits during federal government shutdowns.