To provide back pay to Federal contractors, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
Appropriates and authorizes sums necessary for federal agencies to adjust contract prices so contractors can provide back compensation and restore paid leave for employees affected by fiscal year 2026 appropriations lapses.
Who Benefits and How
Federal contractor employees furloughed, laid off, not working, working reduced hours, receiving reduced compensation, or forced to use paid leave during a lapse could receive back compensation or restored leave through contract price adjustments.
Who Bears the Burden and How
Federal agencies would need to adjust contracts, contractors would need to document actual costs, OFPP would need to report, and the Treasury would fund the adjustments.
Key Provisions
- Appropriates such sums as necessary for fiscal year 2026 contract price adjustments tied to lapses beginning around October 1, 2025 and later fiscal year 2026 lapses.
- Requires agencies to adjust covered contract prices to compensate contractors for reasonable employee back-pay and paid-leave restoration costs.
- Caps weekly employee compensation eligible for adjustment at actual weekly compensation or $1,442, prorated for part-time work.
- Requires contractors to provide evidence of actual costs to agency heads.
- Requires OFPP to report within one year on agencies, affected workers, back compensation, paid leave, and cap application.
- Authorizes such sums as necessary for agencies subject to lapses to make the adjustments.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Appropriates and authorizes sums necessary for federal agencies to adjust contract prices so contractors can provide back compensation and restore paid leave for employees affected by fiscal year 2026 appropriations lapses.
Key Policy Areas
Labor, Procurement, Appropriations, Government Operations
Primary Purpose
Appropriates and authorizes sums necessary for federal agencies to adjust contract prices so contractors can provide back compensation and restore paid leave for employees affected by fiscal year 2026 appropriations lapses.
Policy Domains
Main Provisions
Identified Gains
Contextual inference, no direct clause citation- Federal contractor employees affected by appropriations lapses
- Federal contractors reimbursed for covered employee compensation and leave restoration costs
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal agencies, OFPP, and taxpayers funding and administering contract price adjustments
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMs. Smith (for herself, Mr. Kaine, Mr. Warner, Mr. Van …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Federal contractor employees indirectly supported by funded back-pay adjustments, Federal contractor employees receiving back compensation or restored paid leave after shutdown-related work interruptions, Federal contractor employees supported by authorized back-pay adjustments
Federal agencies and Treasury funding contract adjustment appropriations, Federal agencies reviewing evidence and adjusting contract prices, OFPP administrators reporting on contract adjustment implementation
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "agency_head"
- → Head of the Federal agency concerned
- "ofpp_administrator"
- → Administrator of the Office of Federal Procurement Policy
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology