HB5572, the Help Federal Employees During Shutdowns Act, would require states to allow certain federal employees who are working without pay during a lapse in appropriations to apply for and receive unemployment compensation benefits. The bill is aimed at “excepted” federal employees—those required to keep working during a shutdown but who are not being paid—and it applies to shutdowns occurring in fiscal years 2026 or 2027.
The bill also creates a repayment and reimbursement structure. If an affected federal employee later receives back pay under federal law for the same period, the employee must repay the state unemployment benefits received for that period, and any unrepaid amounts would be treated as overpayments recoverable under state unemployment law. States would be fully reimbursed by the federal government for both the unemployment benefits paid and related administrative costs, with the money coming from the Unemployment Trust Fund. In effect, the bill temporarily expands state unemployment systems to cover unpaid federal workers during shutdowns while shifting the financial burden to the federal government.
Impact
HB5572 would amend section 303 of the Social Security Act to add a new federal requirement for state unemployment compensation laws. States would have to treat certain unpaid federal employees as eligible for unemployment compensation during a lapse in appropriations, even though they are still performing emergency work. The bill would also require states to establish repayment and overpayment recovery procedures for any later-paid back wages, and to deposit recovered funds into the state unemployment fund. Federal reimbursement would cover 100 percent of benefit payments and administrative expenses, using the Unemployment Trust Fund, so the measure would not leave states bearing the direct cost of the new eligibility rule.
Sentiment
Based on the bill text and available context, the measure appears to have been introduced as a targeted relief bill for federal workers affected by shutdowns, with no recorded committee debate or votes in the provided materials. The sponsor list suggests support from multiple Democratic members, indicating a generally favorable posture toward providing temporary income support to unpaid federal employees. Because there is no voting history or transcript, there is no evidence in the record provided of organized opposition or amendment activity.
Contention
The main policy issue is whether unemployment compensation should be made available to federal employees who are still technically working during a shutdown but are not receiving pay. Supporters are likely to view the bill as a practical safety net for essential or excepted workers facing financial hardship. Potential concerns could include the interaction with existing federal back-pay rules, the administrative burden on state unemployment systems, and the precedent of using unemployment insurance for workers who remain employed but unpaid. However, no specific objections or competing arguments are included in the provided materials.