Fair Pay for Federal Contractors Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5657 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 5657

  To provide back pay to Federal contractors, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 30, 2025

 Ms. Pressley (for herself, Mr. Norcross, Ms. Norton, Ms. Ansari, Ms. 
Balint, Ms. Barragan, Mrs. Beatty, Mr. Beyer, Ms. Bonamici, Ms. Brown, 
Ms. Budzinski, Mr. Casar, Mr. Casten, Ms. Castor of Florida, Ms. Clarke 
   of New York, Mr. Cleaver, Mr. Davis of Illinois, Ms. DeGette, Ms. 
    DelBene, Ms. Elfreth, Ms. Escobar, Mr. Espaillat, Mr. Evans of 
 Pennsylvania, Mr. Fields, Mrs. Fletcher, Mr. Garcia of Illinois, Ms. 
   Garcia of Texas, Mr. Goldman of New York, Mr. Green of Texas, Mr. 
Horsford, Mr. Jackson of Illinois, Ms. Jayapal, Mr. Nadler, Mr. Kennedy 
 of New York, Mr. Landsman, Mr. Larson of Connecticut, Mr. Lynch, Ms. 
   Matsui, Ms. McClellan, Ms. McCollum, Mr. Moulton, Mr. Mullin, Ms. 
 Ocasio-Cortez, Mr. Peters, Ms. Pettersen, Ms. Pingree, Ms. Plaskett, 
  Mrs. Ramirez, Mr. Raskin, Ms. Rivas, Mr. Ruiz, Ms. Schakowsky, Mr. 
 Sherman, Ms. Simon, Ms. Stansbury, Mr. Subramanyam, Mr. Swalwell, Mr. 
   Thanedar, Mr. Thompson of Mississippi, Ms. Tlaib, Ms. Tokuda, Mr. 
 Tonko, Mrs. Trahan, Mr. Tran, Ms. Underwood, Mr. Vargas, Mr. Veasey, 
    Ms. Velazquez, Ms. Waters, Mrs. Watson Coleman, Ms. Williams of 
 Georgia, Ms. Moore of Wisconsin, Mr. Castro of Texas, Mrs. Cherfilus-
 McCormick, Ms. McBride, Mr. McGovern, Mr. Walkinshaw, Ms. Bynum, and 
 Mr. Auchincloss) introduced the following bill; which was referred to 
 the Committee on Appropriations, and in addition to the Committee on 
   Oversight and Government Reform, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To provide back pay to Federal contractors, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Pay for Federal Contractors Act 
of 2025''.

SEC. 2. APPROPRIATION.

    There is hereby appropriated, out of any money in the Treasury not 
otherwise appropriated, for the fiscal year ending September 30, 2026, 
such sums as may be necessary for each Federal agency subject to the 
lapse in appropriations that began on or about October 1, 2025, and any 
subsequent lapse in appropriations occurring during fiscal year 2026 
for adjustments in the price of contracts of such agency under section 
3: Provided that, such sums shall be available for such purposes until 
December 31, 2026.

SEC. 3. BACK COMPENSATION FOR EMPLOYEES OF GOVERNMENT CONTRACTORS IN 
              CONNECTION WITH THE LAPSE IN APPROPRIATIONS.

    (a) Back Compensation.--
            (1) In general.--Each Federal agency subject to the lapse 
        in appropriations shall adjust the price of any contract of 
        such agency for which the contractor suspended, delayed, or 
        interrupted all or part of the work of such contract, or 
        stopped all or any part of the work called for in such 
        contract, as a result of the lapse in appropriations to 
        compensate the contractor for reasonable costs incurred--
                    (A) to provide compensation, at an employee's 
                standard rate of compensation, to any employee who was 
                furloughed or laid off, or who was not working, who 
                experienced a reduction of hours, or who experienced a 
                reduction in compensation, as a result of the lapse in 
                appropriations (for the period of the lapse); or
                    (B) to restore paid leave taken by any employee 
                during the lapse in appropriations, if the contractor 
                required or permitted employees to use paid leave as a 
                result of the lapse in appropriations.
            (2) Adjustment notwithstanding contract terms.--An 
        adjustment may be made under this subsection for costs incurred 
        as described in paragraph (1) regardless of whether the 
        contract concerned provides for, or otherwise prohibits, the 
        contractor to incur such costs or receive such an adjustment 
        for incurring such costs.
    (b) Limitation on Amount of Weekly Compensation Covered by 
Adjustment.--The maximum amount of weekly compensation of an employee 
for which an adjustment may be made under subsection (a) may not exceed 
the lesser of--
            (1) the employee's actual weekly compensation; or
            (2) $1,442 (or an appropriate lesser amount pro-rated for 
        an employee who works less than 40 hours per week).
    (c) Scope of Adjustment Authority.--
            (1) Adjustment only for costs actually incurred.--An 
        adjustment may be made under subsection (a) only for costs 
        actually incurred by a contractor as described in paragraph (1) 
        of that subsection.
            (2) Proof of provision of compensation.--A contractor 
        seeking an adjustment under subsection (a) shall provide the 
        head of the Federal agency concerned such evidence of the costs 
        incurred by the contractor as described in paragraph (1) of 
        that subsection as the head of the agency, in consultation with 
        the Administrator of the Office of Federal Procurement Policy, 
        considers appropriate.
    (d) Timing of Adjustments.--The adjustments required by subsection 
(a) shall be made as soon as practicable after the date of the 
enactment of this Act.
    (e) Report.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Administrator of the Office of 
        Federal Procurement Policy shall submit to the appropriate 
        committees of Congress and make publicly available a report on 
        the adjustments made under subsection (a).
            (2) Elements.--The report required by paragraph (1) shall 
        set forth the following:
                    (A) Each Federal agency described in paragraph (1) 
                of subsection (a) that made adjustments required by 
                that subsection.
                    (B) For each agency, the following:
                            (i) The total number of contractor and 
                        subcontractor employees working for such agency 
                        as of the commencement of the lapse in 
                        appropriations described in subsection (a)(1).
                            (ii) The total number of contractor 
                        employees covered by clause (i) who were 
                        furloughed, laid off, or did not work as a 
                        result of the lapse in appropriations.
                            (iii) The total number, if any, of 
                        employees covered by clause (ii) who received 
                        back compensation in connection with the 
                        furlough, lay off, or cessation of work.
                            (iv) The total number, if any, of employees 
                        covered by clause (ii) who were required or 
                        permitted to use paid leave in place of the 
                        furlough, lay off, or cessation of work.
                            (v) The total number, if any, of employees 
                        covered by clause (ii) who received back 
                        compensation equal to such employees' actual 
                        weekly compensation in connection with the 
                        furlough, lay off, or cessation of work.
                            (vi) The total number, if any, of employees 
                        covered by clause (ii) who received back 
                        compensation that was subject to the limitation 
                        in subsection (b).
    (f) Definitions.--In this section:
            (1) The term ``appropriate committees of Congress'' means--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                    (B) the Committee on Oversight and Government 
                Reform of the House of Representatives.
            (2) The term ``compensation'' has the meaning given that 
        term in section 6701(1) of title 41, United States Code.
            (3) The term ``employee'' means the following:
                    (A) A ``service employee'' as that term is defined 
                in section 6701(3) of title 41, United States Code, 
                except that the term also includes service employees 
                described in subparagraph (B) or (C) of that section 
                notwithstanding such subparagraph.
                    (B) A ``laborer or mechanic'' covered by section 
                3142 of title 40, United States Code.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary for each Federal agency subject to a lapse in appropriations 
for adjustments in the price of contracts of such agency under section 
3.
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