Fair Pay for Federal Contractors Act of 2025

This bill would require federal agencies affected by the government funding lapse that began around October 1, 2025, and any later lapse in fiscal year 2026, to adjust contract prices so contractors are repaid for paying workers who were furloughed, laid off, or had reduced hours or pay because of the lapse. Contractors could also be repaid for restoring paid leave that workers used during the lapse. Covered weekly pay would be capped at the lesser of the worker's actual weekly pay or $1,442, and contractors would have to show proof of costs actually incurred. The bill provides the money needed for these payments, available until December 31, 2026, and requires a public report within one year on the adjustments made.

Full text and official record on Congress.gov

Sponsors

• Tina Smith Democrat sponsor
• 35 cosponsors