Help FEDS Act

Key Points

• This bill would require states to let federal employees who must work during a government shutdown collect unemployment benefits, even though they are technically still employed. These "excepted" workers keep the government running but don't get paid until the shutdown ends.
• The coverage only applies during shutdowns in fiscal years 2026 and 2027, meaning it is a temporary fix rather than a permanent change to how shutdowns affect workers.
• Once the shutdown ends and workers receive their back pay, they must repay the unemployment benefits to the state. If they don't, the state can treat it as an overpayment and use its normal collection methods to get the money back.
• The federal government would fully reimburse states for the cost of the benefits plus any extra administrative expenses, so state unemployment funds would not bear the financial burden.