True Shutdown Fairness Act

The True Shutdown Fairness Act requires U.S. government agencies to pay standard wages, benefits, and allowances to covered employees (including contract workers, military members on active duty, and furloughed staff) during a government shutdown beginning October 1, 2025. It mandates agencies to adjust contract prices for contractors who incurred costs compensating furloughed workers or restoring paid leave during the shutdown. The bill also prohibits agencies from implementing layoffs or placing employees in administrative leave for more than 10 work days during the shutdown period. These provisions apply retroactively to shutdowns starting September 30, 2025, and fund the payments through existing Treasury appropriations.