Rural Hospital Support Act

Senate Bill

S. 335

119th Congress

Rural Hospital Support Act

In Committee

Introduced:Jul 16, 2025

Primary Sponsor

Chuck Grassley

Senator

Republican

IA

Cosponsors

0

Quick Stats

Policy Area

Government Operations and Politics

Summary

This bill would adjust the threshold for when federal service contractors must pay employees prevailing wages and benefits in the local area. It would raise the current $2,500 threshold to account for inflation since 1965, and provide for future increases based on inflation.

Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

SponsorChuck Grassley (R-IA)

Introduced7/16/2025

StatusRead twice and referred to the Committee on Finance.

ChamberSenate

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Vote Prediction

Rural Hospital Support Act

This bill would adjust the threshold for when federal service contractors must pay employees prevailing wages and benefits in the local area. It would raise the current $2,500 threshold to account for inflation since 1965, and provide for future increases base

Community Breakdown

Pass

0%

Fail

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0 predictions

This bill would adjust the threshold for when federal service contractors must pay employees prevailing wages and benefits in the local area. It would raise the current $2,500 threshold to account for inflation since 1965, and provide for future increases based on inflation.

Bill Number: 335
Sponsor: Chuck Grassley (R-IA)
Introduced: 7/16/2025
Status: Read twice and referred to the Committee on Finance.
Policy Area: Government Operations and Politics

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Rural Hospital Support Act
Bill Number: 335
Sponsor: Chuck Grassley (R-IA)
Status: Read twice and referred to the Committee on Finance.
Introduced: 7/16/2025
Summary: This bill would adjust the threshold for when federal service contractors must pay employees prevailing wages and benefits in the local area. It would raise the current $2,500 threshold to account for inflation since 1965, and provide for future increases based on inflation.

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill would adjust the threshold for when federal service contractors must pay employees prevailing wages and benefits in the local area. It would raise the current $2,500 threshold to account for inflation since 1965, and provide for future increases based on inflation.

Last updated: 12/30/2025

Official Summary

Congressional Research Service summary

Service Contract Modernization Act This bill increases a threshold used to determine whether an employee of a federal services contractor or subcontractor is entitled to wages and fringe benefits prevailing in the locality where services are performed (or in a predecessor contractor's collective bargaining agreement). Under current law, a federal contractor or subcontractor that enters into a service contract in excess of $2,500 must comply with prevailing wage and related requirements. This bill increases that amount by adjusting it for inflation since 1965 and provides for future increases based on inflation.

Key Points

Main provisions of the bill

Raises the $2,500 threshold for when federal service contractors must pay prevailing wages and benefits, to account for inflation since 1965.
Provides for future increases to the threshold based on inflation, so it stays current over time.
Aims to ensure federal service contractors pay fair, locally-competitive wages and benefits to their employees.

How This Impacts Americans

Potential effects on citizens and communities

If this bill becomes law, it would impact federal service contractors and their employees. Contractors would have to pay prevailing wages and benefits to more of their workers, which could increase their costs but also ensure more workers are paid fairly. Employees of these contractors, especially those currently earning below prevailing wages, would likely see their pay and benefits increase.

Policy Areas

Primary Policy Area

Government Operations and Politics

Related Subjects

Employee benefits and pensions

Inflation and prices

Public contracts and procurement

Wages and earnings

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

335, 119th Congress (2025). "Rural Hospital Support Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-335

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