H.R. 7838House117th Congress (2021-2023)In Committee

Paycheck Protection Program Fairness for Engineering Services Act

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Updated February 8, 2026 at 3:36 PM UTC

The Paycheck Protection Program Fairness for Engineering Services Act stops transportation agencies from lowering contract costs or giving refunds just because a contractor’s PPP loan was forgiven. It applies to cost‑reimbursement contracts for highway and public‑transportation projects and ensures that forgiveness of payroll costs does not affect the contract’s financial terms. The rule is temporary and ends on June 30, 2025.

Key Provisions

Prohibits the Department of Transportation, state transportation departments, transit agencies, or other assistance recipients from reducing contract costs or issuing cash refunds (including lower indirect cost rates) when a contractor’s payroll costs are forgiven under a Paycheck Protection Program loan.
Specifies that this prohibition applies to cost‑reimbursement contracts for highway and public‑transportation projects under the relevant statutes and does not alter other existing legal prohibitions.
Sets an expiration date, so the rule stops being effective on June 30, 2025.

Legislative Activity

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2 earlier actions

HouseCommittee Latest Action

Referred to the Subcommittee on Highways and Transit.

Highways and Transit Subcommittee

May 20, 2022

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HouseIntro Referral

Introduced in House

May 19, 2022

HouseIntro Referral

Referred to the House Committee on Transportation and Infrastructure.

Transportation and Infrastructure Committee

May 19, 2022

HouseCommittee

Referred to the Subcommittee on Highways and Transit.

Highways and Transit Subcommittee

May 20, 2022

Bill Text

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Introduced in HouseIssued May 19, 2022

117th CONGRESS

2d Session

H. R. 7838

IN THE HOUSE OF REPRESENTATIVES

May 19, 2022

Mr. Brown of Maryland (for himself and Mr. Katko) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

A BILL

To ensure that no cost reduction or cash refund is due under certain transportation cost-reimbursement contracts on the basis of the forgiveness of certain covered loans, and for other purposes.

Short title

This Act may be cited as the Paycheck Protection Program Fairness for Engineering Services Act.

Treatment of paycheck protection program loan forgiveness of payroll costs under highway and public transportation project cost-reimbursement contracts

(a)

In general

Notwithstanding section 31.201–5 of title 48, Code of Federal Regulations (or successor regulations), for the purposes of any cost-reimbursement contract awarded in accordance with section 112 of title 23, United States Code, or section 5325 of title 49, United States Code, or any subcontract under such a contract, no cost reduction or cash refund (including through a reduced indirect cost rate) shall be due to the Department of Transportation or to a State transportation department, transit agency, or other recipient of assistance under chapter 1 of title 23, United States Code, or chapter 53 of title 49, United States Code, on the basis of forgiveness of the payroll costs of a covered loan (as those terms are defined in section 7A(a) of the Small Business Act (15 U.S.C. 636m(a))) issued under the paycheck protection program under section 7(a)(36) of that Act (15 U.S.C. 636(a)(36)).

(b)

Saving provision

Nothing in this section amends or exempts the prohibitions and liabilities under section 3729 of title 31, United States Code.

(c)

Termination

This section ceases to be effective on June 30, 2025.