Small Business Payment for Performance Act of 2025
Sponsored By: Representative Stauber
Introduced
Summary
This bill would require federal agencies to make interim partial payments to small businesses holding construction contracts when an agency directs a change in contract performance. It sets a floor of at least 50% of the contractor's estimated additional costs and lets small firms request that payment as part of an equitable adjustment claim.
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- Small business contractors: A small business could submit a timely equitable adjustment request that states its estimated extra costs and receive an interim partial payment of not less than 50% of that estimate.
- Subcontractors: Prime contractors must pay first-tier subcontractors the portion of each interim partial payment that corresponds to increased subcontractor costs, and first-tier subcontractors must pass appropriate portions to lower tiers.
- Agencies and the Small Business Administration: Agencies must provide the interim payment on receipt of a qualifying request, and the SBA must implement the requirement by the earlier of the first day of the first full fiscal year after enactment or October 1, 2027.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Interim payments for small construction contractors
If enacted, small businesses on federal construction jobs could request an equitable adjustment when an agency orders a change without your agreement. You would need to make the request on time under your contract and include your estimated extra costs. After you submit it, the agency would have to pay at least 50% of that estimate as an interim payment. That interim payment would not settle the final amount. Prime contractors would have to pass the right share to first tier subcontractors, and those subs would pass it down further. This would take effect no later than the first full fiscal year after enactment, or by October 1, 2027.
Sponsors & CoSponsors
Sponsor
Stauber
MN • R
Cosponsors
Rep. Veasey, Marc A. [D-TX-33]
TX • D
Sponsored 7/22/2025
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 7/22/2025
Norcross
NJ • D
Sponsored 7/22/2025
Rep. Sorensen, Eric [D-IL-17]
IL • D
Sponsored 8/26/2025
Rep. Case, Ed [D-HI-1]
HI • D
Sponsored 9/26/2025
Rep. Davids, Sharice [D-KS-3]
KS • D
Sponsored 10/8/2025
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 10/8/2025
Carson
IN • D
Sponsored 10/28/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 1/2/2026
Davis (NC)
NC • D
Sponsored 1/6/2026
Rep. Landsman, Greg [D-OH-1]
OH • D
Sponsored 4/20/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov