During a government shutdown, federal agencies currently have to furlough workers or ask them to keep working without pay until Congress passes new funding. The Pay the People Act creates a standing appropriation that automatically continues pay, allowances, and benefits for federal employees, the contractors who support them, and active-duty service members whenever funding for an agency lapses, starting with fiscal year 2026. That funding would keep flowing until Congress enacts regular or continuing appropriations covering the same purpose, at which point the temporary payments would stop. The bill is written to apply retroactively to September 30, 2025, so it would also reach back to cover any shutdown already in progress around that date.
Average Household Impact
- Federal pay continuity during shutdowns — Automatically funds pay for federal employees, support contractors, and active-duty troops whenever agency funding lapses
Congressional Summary
Pay the People ActThis bill provides appropriations to pay federal employees during a government shutdown due to a lapse in appropriations.Specifically, the bill provides appropriations for federal agencies to provide standard rates of pay, allowances, pay differentials, benefits, and other payments to agency employees (including contractors and members of the Armed Forces on active duty) during any period in which interim continuing appropriations or full-year appropriations are not in effect for a fiscal year (i.e., a government shutdown).A federal agency may not use the funds provided by this bill during any period in which continuing appropriations are in effect for the purpose of paying employees of the agency.The bill must take effect as if it had been enacted on September 30, 2025.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-10-28
- Date Added
- 2026-07-07
- Source
- Congress.gov →
Like reading a bill in plain English?
We're building an app that does this for every bill in Congress and lets you tell your reps how you want them to vote. We're a small team getting ready to launch, and we're trying to show investors that real people want this. Be one of them. Help us get it built. Leave your email and we'll tell you the moment the app is ready.