Sponsors (136)
The bill protects contractors, contractor employees, and continuity of services during funding lapses by authorizing contract adjustments and back pay, but it does so by creating potentially open‑ended taxpayer liabilities and reducing congressional control and budgetary priorities.
Government contractors will receive contract price adjustments to cover costs caused by the FY2026 funding lapse, reducing sudden unpaid obligations and helping firms avoid immediate losses.
Federal agencies can promptly honor adjusted contract payments (and have flexibility to cover necessary costs), helping maintain continuity of services that rely on federal contracts and avoiding separate emergency appropriations.
Contractor employees who were furloughed or had reduced hours will receive restored pay (up to a weekly cap of $1,442) and have paid leave restored, returning lost wages and protecting leave balances for affected workers.
Taxpayers face potentially large, unspecified costs because the bill authorizes 'such sums as may be necessary' (and one section allows uncapped payments), increasing federal outlays and deficit risk without a dollar cap.
The open-ended spending authority and post-lapse adjustments reduce congressional control and fiscal oversight during funding lapses, weakening Accountability over how much is paid and when.
During funding gaps, the bill may prioritize contractor contractual adjustments over other limited priorities (including broader services or federal employee pay), shifting scarce funds toward contractors.
Based on analysis of 4 sections of legislative text.
Introduced September 30, 2025 by Ayanna Pressley · Last progress September 30, 2025
Requires federal agencies that experienced (or later experience) a lapse in appropriations to raise contract prices to reimburse contractors for actual, reasonable costs of paying employees who lost pay or had reduced hours/leave during the lapse, and to restore paid leave used because of the lapse. It directs agencies to make these adjustments quickly, sets a weekly reimbursement cap per employee, requires contractor documentation, and authorizes Treasury funding to cover the adjustments.