DemocratBill · S. 2963· Senate(119-S-2963)

Fair Pay for Federal Contractors Act of 2025

Rep. Smith
Age: 68 years
Minnesota
Introduced
10/1/2025
Last activity
10/1/2025 — Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Sponsored by
Tina Smith
Cosponsors
Democrat - 33Republican - 0
Government Operations and Politics
  1. Introduced
  2. In Committee

What this bill would do

The Fair Pay for Federal Contractors Act of 2025 aims to provide back pay to Federal contractors during a lapse in appropriations. Federal agencies must adjust contract prices to cover reasonable costs incurred by contractors who had to suspend or delay work. This includes paying employees who were furloughed, laid off, or had reduced hours and pay. It also covers restoring paid leave used during the lapse. The bill sets a maximum weekly compensation cap for these adjustments and requires a public report on the adjustments made.

Yes· 3 of 6

  • Would union members be better off under this?+6

    The bill ensures workers receive their standard rate of compensation even when work is suspended by the government.

  • Does this make it easier to run a small business?+6

    The bill ensures contractors are reimbursed for labor costs and leave restoration despite existing contract restrictions.

  • Would households on low incomes be better off under this?+5

    The bill protects the income of workers who may experience furloughs or reduced hours due to funding lapses.

The opposite

  • Does this reduce what the federal government spends?-3

    The bill requires additional federal spending to reimburse contractors for employee compensation and leave.