Pay the People Act

Key Points

• This bill guarantees that federal employees, active-duty military members, and certain government contractors continue receiving their paychecks during any government shutdown. It covers standard pay, allowances, benefits, and other regular payments.
• The bill covers all three branches of government, not just the executive branch. This means workers in Congress and the federal courts are also protected from missed paychecks during funding gaps.
• The automatic funding kicks in whenever regular or continuing appropriations lapse for any agency, starting in fiscal year 2026 and every year after that. It stays active until Congress passes new funding legislation.
• The bill includes a retroactive effective date of September 30, 2025, which is the last day of fiscal year 2025. This would ensure any funding gap that occurred around that date is also covered.
• Once Congress does pass regular appropriations, any money spent under this bill gets charged back to those regular funding accounts. This means the bill does not create separate long-term spending but rather bridges the gap.