Title: Paycheck Protection Program Fairness for Engineering Services Act
Policy area: Transportation and Public Works

Summary:
Paycheck Protection Program Fairness for Engineering Services Act
This bill exempts until June 30, 2025, certain contractors that receive federal highway or public transportation funding from having to adjust costs associated with their contracts to account for loan forgiveness through the Paycheck Protection Program (PPP). (The PPP provided small businesses with loans for payroll and other costs to respond to the COVID-19 emergency with loan forgiveness under certain conditions.)
Under current law, a contractor with a cost-reimbursable contract must reduce costs or provide cash refunds to the Department of Transportation (or a state department of transportation) if the contractor receives or accrues any income, rebate, allowance, or other credit relating to an allowable contract cost, which includes PPP loan forgiveness.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7838 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 7838

 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.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 2. 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.
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