The bill strengthens procurement integrity by blocking awards to certain special government employees and their close associates, but at the cost of narrowing the eligible award pool, potentially raising costs and slowing projects, complicating research partnerships, and imposing a tight compliance burden on agencies.
Taxpayers and federal programs face fewer conflicts of interest because the bill bars certain special government employees (SGEs) and their closely linked organizations from receiving federal contracts or grants, strengthening procurement integrity.
Federal advisory committees can still access outside expertise because SGEs who serve only on advisory committees are exempted, preserving expert input into agency decisions.
Government contractors, potential grantees, and taxpayers may be harmed because excluding SGEs and their family-linked organizations shrinks the pool of eligible awardees, which could raise procurement costs and slow project delivery.
Scientists, researchers, and nonprofit partners could face reduced collaboration and funding opportunities if individuals who are SGEs cannot receive research awards or cooperative agreements, complicating staffing and project partnerships.
Federal and state agency staff will incur administrative strain because agencies must amend the Federal Acquisition Regulation (FAR) within a short 60-day window, diverting staff time and resources from program delivery and oversight.
Based on analysis of 2 sections of legislative text.
Bars federal awards to special Government employees and certain close relatives/entities, except when the SGE serves only on an advisory committee.
Official title: To prohibit Federal awards for special Government employees, and for other purposes.
Introduced April 10, 2025 by Kathy Castor · Last progress April 10, 2025
Prohibits the federal government from awarding contracts, grants, cooperative agreements, or other federal awards to special Government employees (SGEs) or certain close relatives and entities tied to them, except when the SGE serves only as an advisory committee member. Requires the Federal Acquisition Regulation (FAR) to be updated within 60 days to implement the rule. The rule covers spouses, children, general partners, and organizations where the SGE is an officer, director, trustee, general partner, or employee; it aims to prevent perceived profiteering by restricting direct federal awards to those closely connected to SGEs.