Ending Discrimination in Government Contracting Act
Sponsored By: Senator Lee, Mike [R-UT]
Introduced
Summary
End race-, ethnicity-, and sex-based preferences in federal contracting. This bill would shift federal procurement toward a HUBZone-focused system and give specific priority to veteran-owned firms while narrowing which businesses qualify as "small business concerns".
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- Minority-, women-, and socially and economically disadvantaged business owners would lose many status-based contracting preferences as the bill removes or restricts those classifications and related statutory provisions.
- HUBZone-qualified and veteran-owned firms would become the primary focus for set-asides and priorities, with "qualified HUBZone small business concerns" defined by reference to 15 U.S.C. 657a(b).
- Federal agencies would have to remove race-, ethnicity-, and sex-based rules and guidance on tight timelines. Proposed rulemaking is due in 60 days and final rules in 180 days. Guidance updates must happen within 60 days and the Department of Transportation's small-business participation target drops from 10% to 5%.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 1 costs, 3 mixed.
Repeal of disadvantaged-business programs
This bill would repeal several laws and provisions that set up disadvantaged-business programs. Repeals listed include parts of the CARES Act, the Energy Policy Act, the Minority Business Development Act of 2021, and certain EPA provisions. If enacted, businesses that use those programs could lose eligibility or statutory support. These repeals would take effect upon enactment.
Priority for HUBZone and veteran firms
This bill would replace many race- or gender-based contracting preferences with rules that favor qualified HUBZone small businesses. The bill would define “qualified HUBZone small business concern” by reference to 15 U.S.C. 657a(b). It would also prioritize veteran-owned small businesses in some programs, including specified American Rescue Plan Act provisions. These changes would take effect upon enactment.
Ban on race- and sex-based contracting
This bill would add new laws that prohibit agency heads from considering a contractor owner's race, ethnicity, or sex when awarding civilian or defense contracts. It would also bar agencies from requiring contractors or grantees to consider those traits when awarding subcontracts or awards. These prohibitions would apply across civilian and defense contracting and would take effect upon enactment.
Deadlines to remove race-based rules
If enacted, agency heads would have to propose rule changes removing race, ethnicity, and sex references within 60 days. Agencies would have to complete final rulemaking within 180 days. Agencies would also have to update guidance and notices removing such references within 60 days. These requirements would force agencies to revise rules and reporting that encourage demographic preferences.
Sponsors & CoSponsors
Sponsor
Lee, Mike [R-UT]
UT • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov