House CR would extend COVID-19 reimbursement program for defense contractors

By Tony Bertuca  / September 21, 2020

The House has filed a stopgap continuing resolution that would extend the period by which contractors can be reimbursed for remaining in a "ready state" during the COVID-19 pandemic.

Section 3610 of the Coronavirus Aid, Relief, and Economic Security Act, which would reimburse defense contractors' expenses for paid leave and other pandemic-related costs, is set to expire Sept. 30 but would be extended to Dec. 11 under the House's proposed CR.

Industry has lobbied for the extension for months.

Still, even if the CR passes as is, Congress has yet to appropriate any money for 3610 reimbursements and lawmakers have punted any chance of another COVID-19 stimulus bill until after the November election.

But Pentagon acquisition chief Ellen Lord has also said it could take up to six months to reimburse defense contractors.

On Sept. 9, Lord said the Pentagon estimates it will need between $10 billion and $20 billion to address costs incurred by defense contractors between March 15 and September 15.

"We believe we need that appropriation to maintain readiness because if we do not get that, what we are going to find is we are not going to get the number of units delivered," she said at the time. "We are not going to maintain warfighter readiness. We're not going to move forward in modernization."

Last month, Inside Defense obtained a Pentagon document outlining expected delays to specific programs and identifying a need for $11 billion in emergency supplemental funding to cover the period between March 15 and June 15.