Pay Workers What They’ve Earned Act

Pay Workers What They’ve Earned Act

This bill requires the federal government to reimburse states and employees of the federal government, the District of Columbia government, or federal contractors for certain costs incurred as a result of a lapse in appropriations (i.e., a government shutdown). 

Employee costs that must be reimbursed include costs incurred by an employee as a direct result of a lapse in appropriations, including expenses for loans and credit cards, and any fees, fines, or interest resulting from the employee's inability to make payments as a direct result of a loss in salary due to the lapse in appropriations. 

With respect to a lapse in appropriations that begins on or about October 1, 2025, employees must be reimbursed for any shutdown costs on the earliest date possible after the enactment of this bill (subject to the enactment of an appropriations act ending the lapse). For subsequent lapses in appropriations, the bill requires that each employee be reimbursed for any shutdown costs on the earliest date possible after the end of a lapse in appropriations that lasts at least 14 days.

States must be reimbursed for payments for assistance programs that would otherwise be provided by the federal government but for a lapse in appropriations that lasts at least 14 days. The states must be reimbursed no later than 90 days after the end of the lapse in appropriations. 

The reimbursements required by this bill are subject to the availability of appropriations. 

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5628 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 5628

 To amend title 31, United States Code, to reimburse employees of the 
 Federal Government and the District of Columbia, Federal contractors, 
 and the States for certain costs incurred as a result of a Government 
                   shutdown, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 30, 2025

 Mr. Horsford (for himself, Ms. Norton, and Ms. Ansari) introduced the 
 following bill; which was referred to the Committee on Oversight and 
                           Government Reform

_______________________________________________________________________

                                 A BILL


 
 To amend title 31, United States Code, to reimburse employees of the 
 Federal Government and the District of Columbia, Federal contractors, 
 and the States for certain costs incurred as a result of a Government 
                   shutdown, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pay Workers What They've Earned 
Act''.

SEC. 2. REIMBURSEMENT FOR INDIVIDUALS AFFECTED BY GOVERNMENT SHUTDOWNS.

    Section 1341 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(d)(1) In this subsection--
            ``(A) the term `covered employee' means--
                    ``(i) any employee of the United States Government 
                or of a District of Columbia public employer furloughed 
                as a result of a lapse in appropriations;
                    ``(ii) any excepted employee who is required to 
                perform work during such lapse; and
                    ``(iii) any contractor with the Federal Government 
                (or an employee of such contractor) placed on unpaid 
                leave as a result of such lapse;
            ``(B) the term `shutdown cost' means any cost incurred by a 
        covered employee as a direct result of a lapse in 
        appropriations, including expenses for loans and credit cards, 
        and any fees, fine, or interest resulting from the employees 
        inability to make payments as a direct result of a loss in 
        salary due to such lapse;
            ``(C) the terms `District of Columbia public employer', 
        `employee', and `excepted employee' have the meaning given 
        those terms in subsection (c); and
            ``(D) the term `State' means any of the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, Guam, 
        the Virgin Islands, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any territory or possession of 
        the United States, and includes Indian Tribes.
    ``(2)(A) With respect to the lapse in appropriations beginning on 
or about October 1, 2025, each covered employee shall be paid for any 
shutdown cost at the earliest date possible after the date of enactment 
of this subsection, and subject to the enactment of appropriations Acts 
ending the lapse.
    ``(B) With respect to any other lapse in appropriations of a 
duration of 14 days or longer occurring after the lapse in 
appropriations described in subparagraph (A), any covered employee 
shall, subject to the availability of appropriations, be paid for any 
shutdown cost at the earliest date possible after the lapse in 
appropriations ends.
    ``(3)(A) Any State that makes an expenditure of State funds for 
payments for assistance programs that would be, but for a lapse in 
appropriations of a duration of 14 days or longer (including the lapse 
described in subparagraph (A)), provided by the Federal Government 
shall be reimbursed for such payments not later than 90 days after the 
lapse in appropriations ends.
    ``(B) This paragraph shall not apply to any State expenditure with 
respect to which reimbursement is provided by the Federal Government 
under any other provision of law, including unemployment compensation.
    ``(4)(A) In order to receive reimbursement under paragraph (2) or 
(3), a covered employee or State (as the case may be) shall submit an 
application to the Secretary of the Treasury, in such form and manner 
as the Secretary deems appropriate, not later than 1 year after the 
applicable lapse in appropriations ends.
    ``(B) The Secretary shall determine what documentation shall be 
included with such an application to verify the shutdown costs or 
expenditure submitted by a covered employee or a State, respectively.
    ``(C) Upon approval by the Secretary, reimbursement shall be 
provided to the covered employee or State, consistent with the 
requirements of this subsection.
    ``(5)(A) There is established in the general fund of the Treasury a 
fund, to be known as the `Reserve Fund for Employees Affected By 
Government Shutdowns' (in this paragraph referred to as the `Fund'), 
which shall consist of amounts appropriated into the Fund after the 
date of enactment of this subsection.
    ``(B) Subject to the availability of appropriations, amounts in the 
Fund shall be available for purposes of paying the shutdown costs of 
any covered employee during a lapse in appropriations beginning after 
the lapse referred to in paragraph (2)(A).''.
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