Government withholding law repealed

A law enacted in 2005 that required government agencies to withhold 3% of the payment owed to government contractors for goods or services those contractors provided has been repealed.

Repeal legislation was passed by the House of Representatives several weeks ago, and sent to the Senate for action.  Last week the Senate passed the repeal legislation, but amended the bill to add language not in the House bill.  Because the Senate modified the legislation, the bill had to be sent back to the House for another vote.

The National Association of Wholesalers-Distributors (NAW) worked with the Government Withholding Relief Coalition to push for enactment of legislation to successfully repeal this law.

The House passed the Senate version of the repeal legislation on Nov. 16, sending it to the President for his signature.  With President Obama's signature, the law will be repealed, after a six-year fight, without ever actually taking effect.


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