Letter to the Hon. Donald J. Trump, President of the United States - Rep. Slotkin Urges Trump Administration to Issue Immediate Payments to Small Businesses in Bipartisan Letter

Letter

Dear Mr. President:

We are writing today to request you issue guidance to the entire federal government to expedite outstanding payment to contractors and subcontractors, particularly small businesses, with the goal of making payments within 15 days. Prompt and in-full payment from federal agencies will help alleviate some of the challenges small business contractors and subcontractors are experiencing.

Such guidance is not new, and was actually on track to be implemented in the next 18 months. The guidance we are requesting would mirror the "accelerated payments'' policy authorized less than a decade ago by the Office of Management and Budget (OMB). More importantly, you signed the same program into law on December 20, 2019, via the FY2020 National Defense Authorization Act. However, the rule-making process for the implementation of these laws often takes time -- sometimes as long as 18 months. Given the strain on small businesses due to COVID-19, we urge you to issue immediate guidance reinstating the 15-day payment requirement for the duration of this national emergency.

Businesses that supply the federal government, including the U.S. military, front-load many of their costs as they wait for invoices to be approved and payments to be made. Such a declaration would have a positive impact on small businesses, improving cash flow to primes and suppliers, across the country. Moreover, the requested action would come at no additional cost to taxpayers, but instead simply accelerate payments to those who have effectively provided products and services and are in real need of cash-on-hand.

We respectfully urge you to take action and provide guidance on the matter through OMB as soon as possible.