The Prompt Payment Act

The Prompt Payment Act is a law that ensures government agencies pay bills from contractors and vendors promptly, usually within a set time frame after receiving a correct invoice. Its goal is to promote timely payments, reduce delays, and improve fairness in government transactions. If payments are delayed beyond the specified period, the law often includes penalties or interest charges to encourage prompt processing. This helps maintain good financial practices and supports businesses that work with the government by ensuring they receive payments on time for their services or products.