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Prompt Payment Act

Public Law 97-177 · S. 1131 · 97th Congress · began in the Senate

Signed by Ronald Reagan (R) on May 21, 1982 · Government Operations and Politics

Sponsor: Sen. John Danforth (R-MO)

Cosponsors (65): Sen. Lowell Weicker,

Passage votes

  • HouseVoice vote
  • SenateUnanimous consent
Data notes

The final version of the law, as each chamber passed it. A chamber that passed it by voice vote or unanimous consent has no count. “Method not stated” means the record does not say how the chamber voted. Where the record has a member-by-member vote, the “Who voted for it” section shows who voted yea.

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Summary

The Congressional Research Service’s plain-language summary of what the law does.

Prompt Payment Act - Requires Federal agencies to pay interest penalties on overdue payments to businesses for property or services (excluding disputed payments). Requires the Office of Management and Budget (OMB) to prescribe required payment dates, including specified payment dates for meat food products and perishable agricultural commodities.

Specifies procedures for computing such penalties. Directs an agency to pay any interest penalty out of funds made available for the program for which the penalty was incurred.

Authorizes Federal grant recipients to provide for the payment of interest penalties on overdue payments on their procurement contracts, except that Federal funds shall not be used to pay such penalties.

Entitles an agency to an early payment discount offered by a business only if payment is made within the prescribed time. Requires an agency to pay an interest penalty on any amount overdue.

Permits contractors to file claims under the Contract Disputes Act of 1978 for the payment of interest penalties. Prohibits the continued accrual of interest penalties: (1) after such a claim is filed; or (2) for more than one year.

Directs each agency to report to OMB annually on interest penalty payments made during the fiscal year. Requires OMB to report to specified congressional committees on agency compliance with this Act.

Subjects the Tennessee Valley Authority to the provisions of this Act, but not to regulations promulgated pursuant to this Act.

Committees

The committees the bill was sent to, and what each did with it.

Data notes

A committee links to its page only where it exists in the current Congress; older and renamed committees are named without a link.

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Timeline

From introduction to signing, newest first: the committees, the floor and the president. 16 actions.

  1. May 21, 1982Became lawBecame law · Became Public Law No: 97-177.
  2. Became lawBecame law · Signed by President.
  3. May 13, 1982PresidentPresident · Presented to President.
  4. May 11, 1982Resolving differencesResolving differences · Senate agreed to House amendments. By Unanimous Consent.
  5. Mar 23, 1982FloorFloor · Passed House (Amended) by Voice Vote.
  6. FloorFloor · Called up by House by Unanimous Consent.
  7. CommitteeCommittee · Discharged from House Oversight and Government Reform Committee
  8. Jan 4, 1982CommitteeCommittee · Referred to Military and Foreign Affairs Subcommittee of the House Oversight and Government Reform Committee
  9. Dec 15, 1981FloorFloor · Passed Senate with an amendment by Voice Vote.
  10. CommitteeCommittee · Referred to House Oversight and Government Reform Committee
  11. Dec 14, 1981CommitteeCommittee · Reported by Senate Homeland Security and Governmental Affairs Committee
  12. Dec 9, 1981CommitteeCommittee · Markup by Senate Homeland Security and Governmental Affairs Committee
  13. May 13, 1981CommitteeCommittee · Hearings by State, Local, and Private Sector Preparedness and Integration (Ad Hoc) Subcommittee of the Senate Homeland Security and Governmental Affairs Committee
  14. May 12, 1981CommitteeCommittee · Referred to State, Local, and Private Sector Preparedness and Integration (Ad Hoc) Subcommittee of the Senate Homeland Security and Governmental Affairs Committee
  15. May 6, 1981CommitteeCommittee · Referred to Senate Homeland Security and Governmental Affairs Committee
  16. IntroducedIntroduced · Introduced in the Senate
Data notes

Shows the introduction, each committee and subcommittee step the source dates (referral, hearings, markup, report, discharge), and the floor, conference, presidential and became-law steps. Calendar placements, messages between the chambers, amendments and committee report numbers are not shown for laws before the 108th Congress. Two entries the source lists twice are shown once.

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Official record

The bill’s full text and every action, including introduction and committee steps, are on Congress.gov. Data through Oct 7, 2026.