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119-s-1365119th CongressWALLET

No Federal Payments to Companies Controlled by Special Government Employees Act of 2025

Sponsored By: Senator Shaheen, Jeanne [D-NH]

Introduced

Summary

Would bar federal contracts, grants, and related payments to companies that have owners who serve as special Government employees (SGEs). The bill ties a company's eligibility for federal funds to whether any of its owners serve as an SGE.

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  • Companies: Firms with a "covered beneficial owner" who directly or indirectly owns 5% or more of the company's equity would be ineligible for federal contracts, grants, cooperative agreements, or related payments unless that owner stops being an SGE and remains non-SGE for a 365-day period.
  • Special Government employees: An SGE who meets the beneficial-ownership test could cause their company to lose access to federal funds, creating pressure to resign the SGE role for at least 365 days to restore eligibility.
  • Executive agencies: Agencies that award federal contracts and grants would be prevented from paying these companies under the bill's rules, and the text does not list exceptions, waivers, or enforcement details beyond the prohibition itself.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

No federal payments to SGE-owned firms

If enacted, this bill would bar executive agencies from giving a federal contract, grant, cooperative agreement, or any payment tied to them to a company when any covered beneficial owner was a special Government employee on or after January 1, 2025. A "covered beneficial owner" means someone who is a beneficial owner under 17 CFR 240.13d-3 (as in effect on December 20, 2019) and who directly or indirectly owns 5% or more of the company's equity. To receive federal awards, that owner would have to stop being a special Government employee immediately and then remain not a special Government employee for the full 365 days after the bill becomes law. The bill says "company" includes corporations, LLCs, limited partnerships, business trusts, and similar entities.

Sponsors & CoSponsors

Sponsor

Shaheen, Jeanne [D-NH]

NH • D

Cosponsors

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 9/3/2025

Roll Call Votes

No roll call votes available for this bill.

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