S. 3711Senate117th Congress (2021-2023)In Committee

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.

AI-Generated Summary

Updated February 8, 2026 at 9:39 AM UTC

The bill prevents the Department of Transportation, state transportation departments, transit agencies, or other recipients of federal assistance from receiving any cost reduction, cash refund, or lower indirect cost rate on transportation cost‑reimbursement contracts because a contractor’s payroll costs were forgiven under the Paycheck Protection Program. It applies to contracts awarded under the highway and public‑transportation statutes and their subcontracts, and it remains in effect until June 30 2025.

Key Provisions

No cost reduction or cash refund may be claimed on the basis of PPP loan forgiveness for payroll costs under cost‑reimbursement contracts for highway or public‑transportation projects.
The rule applies to contracts under 23 U.S.C. §112, 49 U.S.C. §5325, and any related subcontracts.
The provision does not change other prohibitions or liabilities under 31 U.S.C. §3729.
The rule expires on June 30 2025.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Environment and Public Works.

Environment and Public Works Committee

February 28, 2022

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SenateIntro Referral

Introduced in Senate

February 28, 2022

SenateIntro Referral

Read twice and referred to the Committee on Environment and Public Works.

Environment and Public Works Committee

February 28, 2022

Bill Text

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Introduced in SenateIssued February 28, 2022

117th CONGRESS

2d Session

S. 3711

IN THE SENATE OF THE UNITED STATES

February 28, 2022

Mr. Braun (for himself and Ms. Duckworth) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works

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.

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.