As Congress still appears far from reaching a spending agreement to end the partial government shutdown, hundreds of thousands of federal employees are expecting to miss their first full paychecks this Friday.

Many excepted and furloughed federal employees received partial paychecks around Oct. 10, for the pay period that ended Oct. 4 — although they were only paid for workdays through Sept. 30.

But while the shutdown drags on, some members of Congress are looking at other options to try to secure pay and benefits for certain employees impacted by the funding lapse.

One Republican-led bill aims to provide immediate and regular compensation to excepted employees, who are continuing to work throughout the shutdown without pay. Sen. Ron Johnson (R-Wis.), who introduced the Shutdown Fairness Act last week, said while the shutdown remains ongoing, Congress should “at least agree to pay all the federal employees that are forced to continue working.”

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“The 2025 Shutdown Fairness Act is a permanent fix that will ensure excepted workers and our troops are paid during a shutdown,” Johnson said.

Despite the Republican bill being teed up for consideration in the Senate this week, some Democrats, including House Minority Leader Hakeem Jeffries, have already indicated they would not support the legislation, since it provides pay for only a portion of the federal workforce. The GOP-led bill would not cover the some 700,000 federal employees who are currently furloughed.

Military members, law enforcement officers and personnel at the Department of Homeland Security received paychecks last week after the Trump administration took extraordinary measures to immediately compensate certain groups of excepted employees.

DHS, for instance, is using funds it received from the “One Big, Beautiful Bill Act” to pay 70,000 employees in law enforcement positions. Other sections of DHS’s workforce, such as Transportation Security Administration personnel, will not be paid during the shutdown — similar to the majority of excepted and furloughed federal employees governmentwide.

“We got the people that we want paid, paid,” President Donald Trump said last week.

The White House is also suggesting that furloughed federal employees aren’t guaranteed back pay after a shutdown ends — despite a 2019 law ensuring retroactive compensation for both furloughed and excepted federal workers.

Efforts to pay for federal contract workers

Johnson’s bill to pay excepted employees is far from the only legislation seeking to support those impacted by the shutdown. A separate Democratic bill, for example, looks to provide back pay for federal contract workers once the shutdown ends. Although federal employees are ensured retroactive pay after a shutdown due to a 2019 law, federal contractors currently aren’t extended that same guarantee.

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The lawmakers co-sponsoring the Fair Pay for Federal Contractors Act said missing paychecks can be particularly harmful to janitorial, food and security services workers under federal contracts. Many are staffed at federal facilities, such as Smithsonian museums, that are shuttered for the duration of a shutdown.

“These are often lower-wage jobs, with many workers living paycheck to paycheck,” Sen. Tina Smith (D-Minn.) said. “These workers can’t afford to go without, and they shouldn’t have to.”

If enacted, the bill would require agencies to adjust their contract prices to ensure back pay for federal contract employees. The compensation would be equal to their standard weekly pay, up to a maximum of $1,442 per week.

Many unions, including the International Association of Machinists and Aerospace Workers, which represents over 600,000 employees, urged lawmakers to get the bill across the finish line as soon as possible.

“Through no fault of their own, many of these families faced the reality of missing payments on their mortgages, student loans, school tuition, car loans, health care premiums, day care, interest fees and so many other expenses,” IAM Union International President Brian Bryant said. “Contract workers and their families should not suffer the consequences of a shutdown they had no hand in creating.”

At the same time, there have been multiple attempts by lawmakers to block Congress members from receiving pay during government shutdowns. While much of the federal workforce goes without pay during the funding lapse, lawmakers continue to receive paychecks as usual.

For instance, one recent bill from Reps. Bill Huizenga (R-Mich.) and Scott Peters (D-Calif.), called the “No Budget, No Pay Act,” aims to block pay for Congress members unless all appropriations bills are passed on time.

Bills looking to tweak benefits for federal employees

Another recent bill from Democrats looks to remove penalty fees for federal employees who pull money out of the Thrift Savings Plan during a shutdown. The legislation from Sen. Tim Kaine (D-Va.) earlier this month, called the Emergency Relief for Federal Workers Act, seeks to make things easier for federal employees who may need to withdraw from their retirement accounts to make ends meet while not getting paid.

During a funding lapse, feds facing financial challenges may look to take out a “hardship withdrawal” to help cover expenses while not being paid as usual. Typically, TSP participants need to prove that they are facing financial difficulties to be able to make this type of withdrawal. But if the legislation is enacted, it would make any shutdown lasting longer than two weeks automatically considered a “financial hardship,” allowing feds to make withdrawals without needing to provide additional proof.

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The bill would also waive the 10% penalty fee that feds incur if they are at or below 59 years old and make an early withdrawal from their TSP accounts. And once a shutdown ends, the legislation would let feds recontribute some or all of the withdrawn funds — something that’s currently not allowed.

Already, TSP participants are automatically kept in good standing on any loans, even if they miss payments during a shutdown. But the legislation would make additional adjustments to loan operations during a shutdown.

For example, the bill would allow feds to pull out loans for shutdowns lasting over 30 days. Currently, TSP participants cannot take out new loans if a shutdown is expected to last longer than 30 days. The legislation would also pause all TSP loan payments during a shutdown.

Kaine’s bill currently has 17 co-sponsors, all of whom are Democrats. Rep. Don Beyer (D-Va.) introduced a companion bill for the Emergency Relief for Federal Workers Act in the House, which has 35 Democratic co-sponsors.

“Government shutdowns inflict senseless pain on federal workers,” Kaine said earlier this month. “If workers need to withdraw funds from their retirement accounts during a shutdown, this bill would ensure they don’t face penalties, that they can access TSP loans and will address other problems a shutdown can create for TSP account holders.”

A similar bill called the Emergency Relief for Federal Contractors Act also attempts to provide financial assistance to federal contractors during a funding lapse. If the bill is enacted, it would waive penalties that contractors would otherwise incur if they make withdrawals from their retirement savings accounts.

One other recent bill from Democrats seeks to shield federal employees and contractors from evictions, foreclosures and repossessions, as well as preventing impacts on credit history or health insurance due to financial challenges. The legislation has been introduced in both the House and Senate.

Democrats have also been calling on major utility companies not to shut off services for federal employees during the shutdown, even if they miss a payment.

If you would like to contact this reporter about recent changes in the federal government, please email drew.friedman@federalnewsnetwork.com or reach out on Signal at drewfriedman.11

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