Legis Daily

Fair Pay for Federal Contractors Act of 2025

USA119th CongressS-2963| Senate 
| Updated: 10/1/2025
Tina Smith

Tina Smith

Democratic Senator

Minnesota

Cosponsors (35)
Jeanne Shaheen (Democratic)Mazie K. Hirono (Democratic)Angela D. Alsobrooks (Democratic)Tammy Duckworth (Democratic)Ruben Gallego (Democratic)Adam B. Schiff (Democratic)Catherine Cortez Masto (Democratic)Richard J. Durbin (Democratic)Edward J. Markey (Democratic)Lisa Blunt Rochester (Democratic)Kirsten E. Gillibrand (Democratic)Elizabeth Warren (Democratic)Ben Ray Luján (Democratic)Alex Padilla (Democratic)Mark R. Warner (Democratic)Angus S. King (Independent)Amy Klobuchar (Democratic)Tim Kaine (Democratic)Sheldon Whitehouse (Democratic)Jacky Rosen (Democratic)Chris Van Hollen (Democratic)Christopher Murphy (Democratic)Martin Heinrich (Democratic)John Fetterman (Democratic)Bernard Sanders (Independent)Brian Schatz (Democratic)Andy Kim (Democratic)Tammy Baldwin (Democratic)Cory A. Booker (Democratic)Peter Welch (Democratic)Jeff Merkley (Democratic)Elissa Slotkin (Democratic)Ron Wyden (Democratic)Richard Blumenthal (Democratic)Mark Kelly (Democratic)

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.
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Timeline

Bill from Previous Congress

S 118-3008
Fair Pay for Federal Contractors Act of 2023
Sep 30, 2025

Latest Companion Bill Action

HR 119-5657
Introduced in House
Oct 1, 2025
Introduced in Senate
Oct 1, 2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
  • Bill from Previous Congress

    S 118-3008
    Fair Pay for Federal Contractors Act of 2023


  • September 30, 2025

    Latest Companion Bill Action

    HR 119-5657
    Introduced in House


  • October 1, 2025
    Introduced in Senate


  • October 1, 2025
    Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Government Operations and Politics

Related Bills

  • HR 119-5657: Fair Pay for Federal Contractors Act of 2025

Fair Pay for Federal Contractors Act of 2025

USA119th CongressS-2963| Senate 
| Updated: 10/1/2025
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.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

S 118-3008
Fair Pay for Federal Contractors Act of 2023
Sep 30, 2025

Latest Companion Bill Action

HR 119-5657
Introduced in House
Oct 1, 2025
Introduced in Senate
Oct 1, 2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
  • Bill from Previous Congress

    S 118-3008
    Fair Pay for Federal Contractors Act of 2023


  • September 30, 2025

    Latest Companion Bill Action

    HR 119-5657
    Introduced in House


  • October 1, 2025
    Introduced in Senate


  • October 1, 2025
    Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Tina Smith

Tina Smith

Democratic Senator

Minnesota

Cosponsors (35)
Jeanne Shaheen (Democratic)Mazie K. Hirono (Democratic)Angela D. Alsobrooks (Democratic)Tammy Duckworth (Democratic)Ruben Gallego (Democratic)Adam B. Schiff (Democratic)Catherine Cortez Masto (Democratic)Richard J. Durbin (Democratic)Edward J. Markey (Democratic)Lisa Blunt Rochester (Democratic)Kirsten E. Gillibrand (Democratic)Elizabeth Warren (Democratic)Ben Ray Luján (Democratic)Alex Padilla (Democratic)Mark R. Warner (Democratic)Angus S. King (Independent)Amy Klobuchar (Democratic)Tim Kaine (Democratic)Sheldon Whitehouse (Democratic)Jacky Rosen (Democratic)Chris Van Hollen (Democratic)Christopher Murphy (Democratic)Martin Heinrich (Democratic)John Fetterman (Democratic)Bernard Sanders (Independent)Brian Schatz (Democratic)Andy Kim (Democratic)Tammy Baldwin (Democratic)Cory A. Booker (Democratic)Peter Welch (Democratic)Jeff Merkley (Democratic)Elissa Slotkin (Democratic)Ron Wyden (Democratic)Richard Blumenthal (Democratic)Mark Kelly (Democratic)

Homeland Security and Governmental Affairs Committee

Government Operations and Politics

Related Bills

  • HR 119-5657: Fair Pay for Federal Contractors Act of 2025
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted