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Requires the Federal Acquisition Regulatory Council to issue rules within one year that make federal contractors review their job classifications to identify positions that require a bachelor’s degree and determine whether those degree requirements are actually necessary. Contractors must file a report of the review results within 180 days after the rules take effect and may face administrative penalties for failing to comply; degree requirements may be retained when shown to be necessary or legally required, and the rules apply to contracts entered on or after the rules’ effective date.
The Federal Acquisition Regulatory Council must issue regulations not later than 1 year after enactment requiring any Federal contractor that enters into a contract subject to the Federal Acquisition Regulation to perform the duties set out in this section.
Federal contractors must conduct a comprehensive review of all job classifications within their Federal contract-related workforce as required by the regulations.
Federal contractors must identify each position that requires a bachelor’s degree or higher as a condition of employment.
Federal contractors must determine whether such educational requirements are demonstrably necessary for the performance of essential job functions.
Not later than 180 days after the effective date of the regulations, each Federal contractor must submit a report to the Federal Acquisition Regulatory Council outlining the job classification review results, including (1) a list of positions where a degree requirement was determined to lack demonstrable occupational necessity and (2) a plan to revise such job classifications with alternative criteria (for example, relevant work experience, certifications, or skills assessments).
Primary impact falls on federal contractors and their HR teams, which will need to inventory job classifications, assess whether listed bachelor’s degree requirements are truly necessary, document justifications, and submit a report within the 180-day reporting window after the FAR rules take effect. This creates direct compliance costs (staff time, possible hiring of consultants, recordkeeping) and potential operational changes where degree requirements are removed or replaced with competency-based criteria. Job applicants and existing employees could be affected positively by reduced credential inflation and broader access to positions if unnecessary degree requirements are removed; conversely, employers who rely on degree screens may need to expand hiring assessments or adjust pay/position structures. Federal contracting authorities and the FAR Council will incur administrative work to write, implement, and enforce the new rules. The provision may also interact with occupation-specific licensure or legal requirements — degree requirements that are legally mandated would remain in place. The magnitude of effects depends heavily on the content of the FAR rule (definitions, scope, subcontractor coverage, penalty structure), which the legislation delegates to the FAR Council to define.
Referred to the House Committee on Oversight and Government Reform.
Last progress June 10, 2025 (8 months ago)
Introduced on June 10, 2025 by Ritchie Torres
Updated 1 week ago
Last progress June 17, 2025 (7 months ago)