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H.R. 5657: Fair Pay for Federal Contractors Act of 2025

The Fair Pay for Federal Contractors Act of 2025 aims to provide financial assistance and back pay to employees of federal contractors who were affected by government funding lapses that began around October 1, 2025. The primary components of the bill are as follows:

Short Title

This Act is known as the Fair Pay for Federal Contractors Act of 2025.

Appropriation of Funds

The bill allocates necessary funds from the U.S. Treasury for federal agencies that faced budget interruptions during the fiscal year ending September 30, 2026. These funds will be available until December 31, 2026, to adjust contract prices accordingly.

Back Compensation for Employees

The main purpose of this section is to ensure that federal contractors can compensate employees who were furloughed, laid off, or otherwise financially impacted due to the funding lapse. It includes the following provisions:

Compensation for Affected Employees: Employees who were not working or experienced a reduction in hours or pay during the budget lapse must be compensated at their regular pay rate for the period of the lapse. This also includes restoring paid leave taken during that time.
Adjustment Authority: The bill allows for contract price adjustments to cover these compensation costs regardless of the existing contract terms.
Weekly Compensation Limitations: The maximum compensation that can be adjusted under this bill cannot exceed either the employee's actual weekly pay or $1,442, with a prorated amount for those working less than 40 hours per week.
Documentation Required: Contractors seeking adjustments must provide evidence of the costs incurred to the relevant federal agency.

Reporting Requirements

Within a year of the Act's enactment, the Administrator of the Office of Federal Procurement Policy must report to Congress on the adjustments made under this law. The report will include:

The number of contractor employees affected by the funding lapse.
The number of those employees who were furloughed or laid off.
The number of employees who received back compensation or used paid leave.
A breakdown of compensation amounts provided to those employees.

Definitions

The bill defines key terms as follows:

Appropriate Committees of Congress: Refers to specific congressional committees involved in overseeing government operations related to this bill.
Compensation: Refers to payment made to employees as defined by existing U.S. law.
Employee: Includes both service employees and laborers or mechanics as defined under U.S. federal law.

Authorization of Appropriations

The bill authorizes the appropriation of necessary funds for federal agencies to make the adjustments outlined in the Act.

Relevant Companies

BA (Boeing): As a major federal contractor, Boeing may experience significant impacts due to potential funding lapses affecting its employees and contracts with the government.
LMT (Lockheed Martin): Another key federal contractor, Lockheed Martin might also be affected similarly regarding compensation for its impacted employees during funding interruptions.
GD (General Dynamics): General Dynamics, involved in defense contracting, could have similar implications as it navigates the financial effects of the bill on its workforce.

This is an AI-generated summary of the bill text. There may be mistakes.

Actions

2 actions

Date	Action
Sep. 30, 2025	Introduced in House
Sep. 30, 2025	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.

Corporate Lobbying

0 companies lobbying

None found.

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Potentially Relevant Congressional Stock Trades

Estimated excess return of the underlying stock since the transaction

Politician	Stock	Transaction	Filed	Traded
Val T. Hoyle D / House	BA BOEING COMPANY	Sale $1,001 - $15,000	Oct 10, 2025	Sep 23, 2025	-16.02%
Gilbert Ray Cisneros, Jr. D / House	BA BOEING COMPANY	Purchase $1,001 - $15,000	Jun 06, 2025	May 30, 2025	-25.17%
Jefferson Shreve R / House	BA BOEING COMPANY	Sale $50,001 - $100,000	Jun 22, 2025	May 12, 2025	-22.55%
Marjorie Taylor Greene R / House	BA BOEING COMPANY	Purchase $1,001 - $15,000	May 06, 2025	May 05, 2025	-20.60%
Bruce Westerman R / House	BA BOEING COMPANY	Sale $1,001 - $15,000	May 12, 2025	Apr 21, 2025	-15.50%
Robert Bresnahan R / House	BA BOEING COMPANY	Sale $1,001 - $15,000	Apr 28, 2025	Apr 08, 2025	-3.75%
Bruce Westerman R / House	BA BOEING COMPANY	Purchase $1,001 - $15,000	May 12, 2025	Apr 08, 2025	-3.75%
Julie Johnson D / House	BA BOEING COMPANY	Sale $1,001 - $15,000	May 14, 2025	Apr 01, 2025	-10.62%
Gilbert Ray Cisneros, Jr. D / House	BA BOEING COMPANY	Purchase $1,001 - $15,000	Apr 07, 2025	Mar 31, 2025	-12.54%
Robert Bresnahan R / House	BA BOEING COMPANY	Purchase $15,001 - $50,000	Mar 27, 2025	Feb 25, 2025	-10.09%
Jefferson Shreve R / House	BA BOEING COMPANY	Sale $15,001 - $50,000	Mar 09, 2025	Feb 24, 2025	-10.46%
Julie Johnson D / House	BA BOEING COMPANY	Purchase $1,001 - $15,000	Mar 12, 2025	Feb 12, 2025	-12.73%
Gilbert Ray Cisneros, Jr. D / House	BA BOEING COMPANY	Sale $1,001 - $15,000	Feb 11, 2025	Jan 24, 2025	-6.33%
Julie Johnson D / House	BA BOEING COMPANY	Purchase $1,001 - $15,000	Feb 12, 2025	Jan 15, 2025	-3.05%
Robert Bresnahan R / House	BA BOEING COMPANY	Sale $15,001 - $50,000	Feb 13, 2025	Jan 13, 2025	-7.99%
Val T. Hoyle D / House	BA BOEING COMPANY	Purchase $1,001 - $15,000	Sep 12, 2025	Oct 29, 2024	+4.16%
Thomas R. Suozzi D / House	BA BOEING COMPANY	Sale $1,001 - $15,000	Nov 12, 2024	Oct 24, 2024	+1.99%
William R. Keating D / House	BA BOEING COMPANY	Sale $1,001 - $15,000	Mar 12, 2024	Feb 28, 2024	-43.44%
Blake D. Moore R / House	BA BOEING COMPANY	Sale $1,001 - $15,000	Jan 24, 2024	Jan 09, 2024	-59.67%