Horsford Introduces Legislation to Close Gaps for Federal Contractors, States and Reimburse Americans for Financial Losses as a Result of An Unnecessary Government Shutdown

WASHINGTON – Today, Congressman Steven Horsford (NV-04) introduced H.R. 5758, the ‘Pay Workers What They've Earned Act,' to reimburse federal employees for fees, interest, and fines charged through no fault of their own during a government shutdown. The bill would also reimburse state and tribal governments for costs incurred during government shutdowns.

"Extreme MAGA Republicans are hellbent on shutting down the federal government, harming thousands of Nevadan workers and small business contractors, wreaking havoc on our economy and impacting essential services to women and children, our military, and delays to Medicare and social security payments to seniors. This is wrong and unacceptable, and it’s why I’m committed to supporting a bi-partisan solution to keep the government working for constituents in Nevada. If a Republican-caused shutdown does occur, I’m working to ensure that Nevada's federal workers and small business contractors aren't on the hook for the additional costs of that shutdown,” said Congressman Horsford. "As thousands of federal employees and contractors learned in previous shutdowns, simply reopening the government doesn't help them pay the credit card interest fees and overdue rent notices that pile up during a government shutdown. Congress needs to make Nevadans whole for the costs they incur during shutdowns - including the Nevada taxpayers and tribal governments who pick up the slack when the federal government stops paying its bills."

In previous government shutdowns, many states across the country were forced to tap into their own resources to cover the federal government's lapse in appropriations for Supplemental Nutrition Assistance (SNAP), Temporary Assistance For Needy Families (TANF), and housing assistance. Other individuals, like many of our servicemembers, air traffic controllers, and TSA agents at the airport, were required to show up to work but not get regular paychecks, forcing some to take short-term, high-interest loans to make ends meet.

Southern Nevada, and the Silver State as a whole, relies heavily on the tourism and travel industry. Last year, the economic impact of Las Vegas tourism hit a record high of $79.3 billion. The impacts of a Republican shutdown on the local tourism industry could be devasting, setting back the progress and momentum of the region. Air traffic controllers and Transportation Safety Administration (TSA) agents would have to work without pay, potentially leading to significant air travel delays and longer wait times and possibly leading to full ground stops at some airports.

The ‘Pay Workers What They've Earned Act' would:

• Cover Family Costs: Provide compensation to federal employees and contractors during a lapse in appropriations to cover the fees, interest and fines incurred due to the lapse in appropriations by setting up a reimbursement verification mechanism with the Department of Treasury.
• Provide Timely State and Tribal Reimbursement: Ensure the federal government reimburses states that have used state budget funds to cover federal programs within 90 days after a shutdown.
• Prevent Burden for Families in the Future: Creates a reserve fund for Federal Employees and Contractors who are furloughed during any future shutdowns.

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