The Help Federal Employees During Shutdowns Act requires states to provide unemployment compensation benefits to federal employees who continue working without pay during government shutdowns in fiscal years 2026 and 2027. The bill specifically targets "excepted" federal employees—those required to work during a shutdown despite not receiving paychecks—allowing them to collect unemployment benefits for weeks they perform emergency work. The federal government will fully reimburse states for all unemployment benefits paid out and any administrative costs incurred through the Unemployment Trust Fund, so states bear no financial burden. However, if an excepted employee eventually receives back pay from the government, they must repay the unemployment benefits they received, with funds returned to the state's unemployment fund. This legislation aims to help essential federal workers like those in national security, air traffic control, and law enforcement maintain income during shutdown periods.
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