Bill > S2963

This bill, known as the Fair Pay for Federal Contractors Act of 2025, provides financial relief for federal contractors affected by government funding lapses during fiscal year 2026. The legislation allows federal agencies to adjust contract prices to compensate contractors for expenses related to employee compensation during periods when government funding is interrupted. Specifically, contractors can receive reimbursement for back pay provided to employees who were furloughed, laid off, had reduced hours, or were required to use paid leave during the appropriations lapse. The bill caps weekly compensation reimbursement at $1,442 per employee or their actual weekly wage, whichever is less. Contractors must provide evidence of actual costs incurred to receive these adjustments, which must be made as soon as possible after the bill's enactment. Additionally, the Administrator of the Office of Federal Procurement Policy is required to submit a comprehensive report to Congress within one year, detailing the number of contractors, employees affected, and compensation provided. The bill aims to protect federal contract workers from financial hardship during government funding interruptions and ensure they receive fair compensation for work disruptions.

Military Affairs and Security

https://www.congress.gov/bill/119th-congress/senate-bill/2963/all-info