This bill would provide continuing appropriations for fiscal year 2026 to pay military personnel and civilian employees of certain intelligence-community elements during any period in which interim or full-year appropriations are not in effect. It covers members of the Armed Forces (including reservists performing active service or inactive-duty training) and civilian employees of the Department of Defense, the Coast Guard, the Office of the Director of National Intelligence, and the Central Intelligence Agency.
The act authorizes those payments to continue until a new appropriation is enacted, a regular or continuing appropriations resolution is enacted without the specific pay provision, or September 30, 2026, whichever comes first. It also provides a specific accounting treatment for those funds, clarifying their status under applicable national-security spending authorities through FY2026 until the Intelligence Authorization Act for FY2026 is enacted.
At a Glance
What It Does
Provides continuing appropriations for pay and allowances for armed forces and select IC civilian employees during periods when 2026 appropriations are not yet in effect. Includes active service and certain reserve components.
Who It Affects
Active-duty military personnel, reservists on active service or IDT, and civilian employees of DoD, Coast Guard, ODNI, and CIA who would otherwise face pay gaps during a shutdown.
Why It Matters
Maintains military readiness and IC operations during funding gaps, reducing morale risks and ensuring payroll continuity even when normal appropriations lag.
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What This Bill Actually Does
The Armed Forces Pay Act of 2025 would step in when the federal government experiences a funding gap. For fiscal year 2026, it would place a continuing appropriation mechanism in the Treasury to ensure pay and allowances continue for two groups: active-duty members of the Armed Forces (including reservists who are on active service or performing inactive-duty training) and civilian employees of the DoD, Coast Guard, ODNI, and CIA.
The payments would come from funds not otherwise appropriated and would cover the period during which interim or full-year appropriations for 2026 are not in effect. The mechanism is designed to keep payroll intact so personnel can continue to perform duties without disruption caused by a lapse in appropriations.
The act terminates when a new, applicable appropriation is enacted, when a regular or continuing resolution is enacted without such pay, or on September 30, 2026, whichever happens first. Additionally, Section 4 clarifies that funds used for intelligence activities are treated as being authorized by Congress for purposes of the National Security Act of 1947 during fiscal year 2026 until the Intelligence Authorization Act for FY2026 is enacted.
This ensures a legal basis for disbursing those funds during the 2026 period.
The Five Things You Need to Know
Continuing appropriations for FY2026 pay are authorized to cover military personnel and select IC civilians during funding gaps.
Active-duty service members and reservists on active service or IDT are explicitly eligible for continued pay.
Civilians in DoD, Coast Guard, ODNI, and CIA are included in the payroll continuity.
Payouts remain available until a new appropriation is enacted, a new appropriations resolution is enacted without pay, or Sept. 30, 2026.
Intelligence-program funds are treated as Congress-approved through FY2026 until the Intelligence Authorization Act is enacted.
Section-by-Section Breakdown
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Short title
Section 1 designates the act as the Armed Forces Pay Act of 2025. It establishes the statutory naming for referencing the bill in future fiscal actions and oversight. The core implication is to frame the ensuing sections around payroll continuity for military and select IC personnel during funding gaps.
Continuing appropriations for pay
Section 2 allocates funds for FY2026 out of any Treasury money not otherwise appropriated, to pay and provide allowances to military personnel (including reserve components on active service or inactive-duty training) and to civilian employees of DoD, the Coast Guard, ODNI, and CIA during periods when interim or full-year appropriations are not in effect. The section also defines “active service” and “inactive-duty training” using the definitions in 10 U.S.C. §101(d). This provides a narrow, mission-focused mechanism to maintain payroll while broader funding negotiations proceed.
Termination
Section 3 sets the duration constraint: the appropriations and authority provided shall expire when one of three events occurs—enactment of a new appropriation for the covered purposes, enactment of an applicable regular or continuing appropriations resolution without the pay provision, or September 30, 2026. This creates a hard ceiling and avoids indefinite funding beyond the period of a potential funding gap.
Treatment of appropriated funds
Section 4 ensures that funds used for intelligence activities are deemed Congress-authorized under the National Security Act of 1947 for FY2026 until the Intelligence Authorization Act for FY2026 is enacted. This clause provides a legal basis for continuing intelligence-related payments during the funding gap and clarifies the permissible scope of those expenditures in the absence of a full appropriations package.
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Who Benefits
- Active-duty members of the Armed Forces who would otherwise face interrupted pay during a funding lapse.
- Reservists performing active service or inactive-duty training during a gap, whose compensation would be preserved during the period.
- Civilian employees of the DoD, Coast Guard, ODNI, and CIA who would otherwise be unpaid during a shutdown.
- Families of service members who rely on stable pay to meet household financial obligations.
- Payroll and HR operation teams within the affected agencies who would otherwise face disruption in payroll processing and rapid reprogramming during a lapse.
Who Bears the Cost
- The Treasury and federal agencies are required to fund continued pay, which could entail reprioritization of other programs during a gap.
- Taxpayers bear the fiscal burden of continuing payroll without a fully enacted appropriations package.
- The broader federal budget management system bears near-term pressure as agencies manage cash flow and obligation limitations amid a shutdown window.
- Potential administrative costs associated with implementing and auditing the continuation of pay during an appropriations lapse.
- Any unaddressed gaps in related benefits or allowances (e.g., health, housing, or family support) during the period of continued pay may create downstream costs if not concurrently covered.
Key Issues
The Core Tension
The central dilemma is whether it is prudent to provide continued payroll during a funding lapse, preserving readiness and morale, while potentially diminishing the immediate pressure to resolve broader budgetary disputes and maintain strict fiscal controls.
The bill trades off immediate payroll continuity against broader budgetary discipline and a clear line-by-line approval process for ongoing spending. By authorizing continuing pay during a shutdown period, it reduces the risk to military readiness and national-security operations caused by furloughs or delayed payments.
However, it also creates a partial bypass around the normal appropriations cycle, potentially deferring difficult budgetary trade-offs to a later date. Implementation will require careful coordination across Treasury, DoD, the IC, and payroll systems to ensure timely disbursements and to prevent gaps in other benefits.
Questions remain about the boundaries of coverage, the interaction with other continuing resolutions, and how offsetting savings or reallocation would be managed if the funding gap were to extend beyond the 2026 fiscal year.
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