Pay Workers What They’ve Earned Act

This bill requires the federal government to reimburse states and employees of the federal government, the District of Columbia government, or federal contractors for certain costs incurred as a result of a lapse in appropriations (i.e., a government shutdown).

Employee costs that must be reimbursed include costs incurred by an employee as a direct result of a lapse in appropriations, including expenses for loans and credit cards, and any fees, fines, or interest resulting from the employee's inability to make payments as a direct result of a loss in salary due to the lapse in appropriations.

With respect to a lapse in appropriations that begins on or about October 1, 2025, employees must be reimbursed for any shutdown costs on the earliest date possible after the enactment of this bill (subject to the enactment of an appropriations act ending the lapse). For subsequent lapses in appropriations, the bill requires that each employee be reimbursed for any shutdown costs on the earliest date possible after the end of a lapse in appropriations that lasts at least 14 days.

States must be reimbursed for payments for assistance programs that would otherwise be provided by the federal government but for a lapse in appropriations that lasts at least 14 days. The states must be reimbursed no later than 90 days after the end of the lapse in appropriations.

Summary by the Congressional Research Service.