Sponsors
Introduced April 27, 2026 by Mike Lee · Last progress April 27, 2026
The bill simplifies and standardizes federal procurement reporting and shifts emphasis toward HUBZone beneficiaries, at the trade-off of removing race/sex-conscious goals and reporting—reducing oversight and contract opportunities for many disadvantaged and non-HUBZone small businesses.
Federal procurement and contractor compliance will be simpler: reporting is consolidated to a single HUBZone definition and references to race/ethnicity/sex are removed, reducing paperwork and administrative burden for agencies and contractors.
Small businesses located in HUBZone (historically underutilized) areas gain clearer, prioritized procurement language and potentially greater targeted access to federal contracts.
Agencies gain greater flexibility to set contracting priorities without a statutory 10% disadvantaged-business obligation, potentially allowing reallocation of procurement dollars across programs.
Women-, minority-, and other socially/economically disadvantaged small businesses are likely to lose statutory recognition, reporting support, and contract opportunities due to repeal of disadvantaged-business targets and removal of race/sex-conscious criteria.
Removing race- and sex-conscious criteria and goals will reduce federal efforts to diversify suppliers and address historical disparities, likely decreasing participation of minority- and women-owned firms in federal contracting over time.
Mandated reporting on contracting with women- and disadvantaged-owned firms is eliminated, reducing transparency and making it harder for Congress, watchdogs, and the public to track disparities or hold agencies accountable.
Based on analysis of 5 sections of legislative text.
Removes race-, ethnicity-, and sex-based preferences and reporting in federal contracting and grants, lowers certain DOT airport small-business goals, and requires agencies to eliminate related rules and guidance.
Removes many federal rules and statutory references that set aside contracting goals, reporting, or preferences based on race, ethnicity, or sex. It narrows or eliminates special counting, reporting, and goal requirements for disadvantaged- and women-owned small businesses across the Small Business Act, Department of Transportation airport grant law, EPA funding set-asides, and other federal programs, and it bars executive and defense agencies from considering owners’ race, ethnicity, or sex when awarding contracts or grants. Agencies must revise or repeal existing rules and guidance quickly: proposed rulemaking within 60 days and final rulemaking within 180 days after enactment (and guidance must be revised within 60 days).