H.R. 4615 · In committee · Commerce

Small Business Payment for Performance Act of 2025

What it does

Amends the Small Business Act to allow small business contractors to request equitable adjustments when an agency changes construction contract terms without agreement.
Requires agencies to provide interim partial payments of at least 50 percent of estimated increased costs when a small business submits an equitable adjustment request.
Specifies that interim partial payments do not constitute finalization of the equitable adjustment request.
Requires prime contractors receiving interim partial payments to flow down proportional amounts to first-tier and lower-tier subcontractors based on their incurred cost increases.
Directs the Small Business Administration to implement these requirements by October 1, 2027, or the first full fiscal year after enactment, whichever is earlier.

Sep 16, 2026: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 0.

Committee: House Small Business