True Shutdown Fairness Act

This bill aims to ensure that federal employees, contract employees, and military personnel receive their full pay and allowances during the lapse in appropriations that began on October 1, 2025. It specifically appropriates necessary sums for fiscal year 2026 to cover standard rates of pay, allowances, benefits, and other regular payments for these covered individuals . These appropriations are effective retroactively to September 30, 2025, and remain available until new appropriations are enacted into law. Furthermore, the legislation requires agencies to adjust contract prices to compensate contractors for reasonable costs incurred due to the funding lapse. These compensable costs include providing pay to employees who were furloughed, laid off, or experienced reduced hours or compensation, as well as restoring paid leave taken by employees during the shutdown. To prevent further disruption, the bill prohibits agencies from using funds to propose or implement reductions in force or place employees on administrative leave for more than 10 work days during the covered lapse in appropriations.