The Help Federal Employees During Shutdowns Act would require states to provide unemployment benefits to federal employees who work 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 a lapse in funding—allowing them to collect unemployment compensation for weeks they perform emergency duties. The federal government would fully reimburse states for 100 percent of these benefits and any administrative costs through the Unemployment Trust Fund. However, if an excepted employee eventually receives back pay after the shutdown ends, they must repay the unemployment benefits they received, with the money returned to the state's unemployment fund.
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