The bill tightens procurement ethics and forces quick regulatory fixes to boost trust and consistency, but narrows who can do business with the government, may deter outside experts, and creates short-term implementation burdens.
Federal employees and government contractors: SGEs and their close associates will be barred from receiving federal contracts or awards, reducing conflicts of interest and increasing public trust in procurement.
Federal employees and government contractors: the FAR must be revised within 60 days to clarify procurement rules, speeding implementation and making procurement decisions more consistent across agencies.
Federal employees and nonprofits: Experts may be deterred from serving as SGEs if doing so would bar their affiliated organizations from receiving federal funds, reducing agencies' access to outside expertise.
Government contractors and nonprofits: Individuals and organizations connected to SGEs may be excluded from contracting opportunities, reducing revenues for some vendors and potentially raising competition costs.
Federal employees and government contractors: Requiring rapid FAR changes and quick compliance creates administrative burden and could disrupt procurements during the 60-day implementation window, causing delays or extra costs.
Based on analysis of 2 sections of legislative text.
Prohibits federal contracts, grants, and similar awards to special government employees and certain close associates, except when the SGE serves only on an advisory committee.
Introduced April 10, 2025 by Kathy Castor · Last progress April 10, 2025
Prohibits the federal government from awarding contracts, grants, cooperative agreements, other federal awards, or OTA-type agreements to special government employees (SGEs) or to certain close associates of SGEs (spouses, children, general partners, or organizations where the SGE serves in a leadership or employee role). Allows an exception when the SGE serves only as a member of an advisory committee. Requires the Federal Acquisition Regulation (FAR) to be updated to implement the restriction within 60 days after the law takes effect. This creates a narrow, statutory bar intended to prevent SGEs and their immediate associates from receiving federal awards, expands the definitions of covered parties, and imposes a short compliance timeline for agency procurement rules. It does not create new funding or authorize programs.