A top-of-mind issue for contractors right now is whether Section 3610 of the CARES Act will expire on September 30, as it is currently set to do. As discussed here and here, Section 3610 authorizes reimbursement of certain contractors who are unable to access their work sites and unable to telework during the pandemic—a critical stopgap designed to keep contractor workforces in a “ready state.”
On September 22, the House of Representatives passed a Continuing Resolution that would fund the government through December 11, 2020, and included in the Continuing Resolution an extension of Section 3610 through that same date. Whether the Senate will approve the Continuing Resolution remains to be seen, but we are cautiously optimistic that Section 3610 will be extended in light of the House’s support.
Of course, as we previously discussed here, there are other potential bases of recovery for contractors beyond Section 3610. However, each basis comes with its own set of limitations, and, thus, the sweeping relief provided through Section 3610 remains critically important. Section 3610, in turn, comes with its own limitations—including that there is no dedicated funding behind it, it is discretionary, it only provides relief for a subset of costs stemming from the pandemic, and, even if extended, it will remain a temporary measure.
We will continue to monitor this important topic and provide updates as they occur.