Homeland Security and Governmental Affairs Committee
Introduced
In Committee
On Floor
Passed Chamber
Enacted
This bill aims to provide financial relief to federal contractors and their employees affected by government shutdowns. It specifically appropriates funds for the fiscal year ending September 30, 2026, to cover adjustments in contract prices for federal agencies impacted by the lapse in appropriations that began on or about October 1, 2025, and any subsequent lapses in FY2026. These funds will be available until December 31, 2026, ensuring that contractors can be compensated for certain costs incurred during such periods. A core provision of the bill mandates that federal agencies adjust the price of any contract where work was suspended, delayed, or interrupted due to a lapse in appropriations. This adjustment is intended to provide back compensation to contractors for reasonable costs incurred to pay employees who were furloughed or laid off , or experienced reduced hours or compensation during the shutdown. Additionally, it covers costs to restore paid leave taken by employees if they were required or permitted to use it as a result of the lapse, with these adjustments required regardless of existing contract terms. The bill establishes a limitation on the maximum amount of weekly compensation covered by these adjustments, capping it at the lesser of an employee's actual weekly compensation or $1,442, with pro-rated amounts for part-time workers. Contractors seeking these adjustments must provide evidence of the costs actually incurred. Furthermore, the Administrator of the Office of Federal Procurement Policy is required to submit a public report within one year of the Act's enactment, detailing the adjustments made, including the number of affected contractor employees and the total compensation provided.
This bill aims to provide financial relief to federal contractors and their employees affected by government shutdowns. It specifically appropriates funds for the fiscal year ending September 30, 2026, to cover adjustments in contract prices for federal agencies impacted by the lapse in appropriations that began on or about October 1, 2025, and any subsequent lapses in FY2026. These funds will be available until December 31, 2026, ensuring that contractors can be compensated for certain costs incurred during such periods. A core provision of the bill mandates that federal agencies adjust the price of any contract where work was suspended, delayed, or interrupted due to a lapse in appropriations. This adjustment is intended to provide back compensation to contractors for reasonable costs incurred to pay employees who were furloughed or laid off , or experienced reduced hours or compensation during the shutdown. Additionally, it covers costs to restore paid leave taken by employees if they were required or permitted to use it as a result of the lapse, with these adjustments required regardless of existing contract terms. The bill establishes a limitation on the maximum amount of weekly compensation covered by these adjustments, capping it at the lesser of an employee's actual weekly compensation or $1,442, with pro-rated amounts for part-time workers. Contractors seeking these adjustments must provide evidence of the costs actually incurred. Furthermore, the Administrator of the Office of Federal Procurement Policy is required to submit a public report within one year of the Act's enactment, detailing the adjustments made, including the number of affected contractor employees and the total compensation provided.