Fair Pay for Federal Contractors Act of 2025

This bill requires federal agencies to adjust contract prices for contractors affected by government funding lapses (like shutdowns), ensuring contractors can cover costs for employees who were furloughed, laid off, or had reduced hours. It mandates that contractors receive reimbursement for paying employees at their standard rate during the lapse or restoring paid leave used instead of work. The reimbursement is capped at $1,442 per week (pro-rated for part-time workers), and contractors must provide proof of costs to the agency. Agencies must report to Congress within a year on how many contractor employees were impacted and how compensation was handled.