This bill makes sure federal contractors get paid back for money they spent helping their employees during a government shutdown in 2026. When the government shuts down and stops paying federal agencies, contractors often have to send workers home without pay or let them use their vacation days. This bill says the government will reimburse contractors for the costs of paying those workers during the shutdown—either for wages they missed or for paid time off they had to use.

Here's how it works in practice: If a construction company has a contract to build a federal building and a shutdown happens, they might have to send home 50 workers for two weeks. The company could either pay those workers out of pocket or require them to use their vacation days. Under this bill, the government will adjust the contract price to pay the company back for those costs. However, there's a cap—the government will only reimburse up to $1,442 per week per employee (or less if someone works part-time).

Essentially, this protects both contractors and their workers. Contractors won't lose money when shutdowns happen, and workers won't lose pay or be forced to burn through their vacation days. The bill also requires the government to report to Congress on how much money was actually paid out through these adjustments.

Fair Pay for Federal Contractors Act of 2025

Pressley, Ayanna

Fair Pay for Federal Contractors Act of 2025This bill provides back pay to employees of federal contractors who lost pay due to a lapse in appropriations (i.e., government shutdown) in FY2026.Specifically, the bill provides appropriations for federal agencies that are subject to a lapse in appropriations in FY2026 to adjust the price of contracts to compensate federal contractors for&nbsp;providing back pay to employees who were affected by the lapse in appropriations.&nbsp;The agencies must adjust the price of any contract for which the contractor stopped, suspended, delayed, or interrupted all or part of the work under the contract due to the lapse in appropriations. The price adjustment must compensate the contractor for reasonable costs incurred to (1) compensate employees who were furloughed or laid off, were not working, or experienced a reduction of hours or compensation due to the lapse in appropriations; or (2) restore paid leave taken by employees during the lapse in appropriations if the contractor required or permitted employees to use paid leave as a result of the lapse in appropriations.The maximum amount of weekly compensation of an employee for which an adjustment may be made under this bill may not exceed the lesser of (1) the employee's actual weekly compensation, or (2) $1,442 (or a lesser amount pro-rated for an employee who works less than 40 hours per week).The bill also requires the Office of Federal Procurement Policy to submit a report to Congress on the adjustments made under this bill.