The "Fair Pay for Federal Contractors Act of 2025" aims to provide financial relief to federal contractors and their employees impacted by government funding lapses. It appropriates necessary funds for federal agencies to adjust contract prices, covering costs incurred by contractors due to a lapse in appropriations beginning on or about October 1, 2025, or any subsequent lapse in fiscal year 2026. These funds are available until December 31, 2026, to ensure contractors can compensate their workforce. Specifically, the bill requires federal agencies to compensate contractors for reasonable costs associated with providing back pay to employees who were furloughed, laid off, or experienced reduced hours or compensation as a direct result of a government shutdown. It also covers costs for restoring paid leave that employees were required or permitted to use during such periods. These contract price adjustments are mandated regardless of existing contract terms, ensuring broad applicability. There is a limitation on the amount of weekly compensation covered by these adjustments, capped at the lesser of an employee's actual weekly compensation or $1,442, with pro-rated amounts for part-time workers. Contractors must provide proof of actually incurred costs to receive adjustments. The bill also mandates a report from the Administrator of the Office of Federal Procurement Policy within one year, detailing the adjustments made, including the number of affected contractor employees and the types of compensation provided.