Sponsors (2)
The bill limits DoD awards to firms without recent ties to senior federal officials to reduce conflicts of interest and protect taxpayers, but it risks narrowing the bidder pool, raising costs or delays for defense acquisitions, and imposing compliance burdens that could harm some firms.
Taxpayers, service members, and the public: procurement decisions are less likely to favor firms tied to current or recent senior federal officials, improving oversight, reducing perceived conflicts of interest, and increasing public trust in DoD contracting.
Contractors without covered current or recent senior federal officials: more likely to win DoD contracts, leveling the playing field and promoting fairer competition for firms that do not have high‑level ties.
Taxpayers: by restricting awards to firms with covered insider ties, the bill may reduce the risk of contracts that unduly benefit insiders and help protect government funds from wasteful or biased spending.
Military personnel and taxpayers: narrowing the pool of eligible bidders could raise contract costs and delay Defense acquisitions, potentially slowing delivery of capability and reducing readiness.
Government contractors and federal procurement officials: new screening thresholds and the requirement to identify covered relationships within 30 days will create additional administrative burden and compliance costs for both DoD and vendors.
Small businesses and firms that employ former or current senior federal officials: could suddenly lose eligibility for DoD contracts, causing revenue loss, layoffs, or other economic harm to those companies and their employees.
Based on analysis of 2 sections of legislative text.
Stops the Secretary of Defense from contracting with entities tied to certain senior officials or their immediate family members and requires regulations within 30 days.
Prohibits the Secretary of Defense from starting, renewing, or extending any contract or acquisition from an entity when certain government-connected people (senior appointees, Schedule C employees, special government employees, or SES members) — or specified immediate family members — are officers, directors, partners, majority owners, or would otherwise receive substantial financial benefit. The Secretary must issue implementing regulations, including definitions and thresholds, within 30 days of enactment.
Official title: To prohibit the Secretary of Defense from awarding contracts to entities of which certain current Government employees are officers or owners, and for other purposes.
Introduced December 12, 2025 by Steven Horsford · Last progress December 12, 2025