Sponsors (2)
The bill reduces conflicts of interest and increases fairness in DoD contracting by restricting awards to firms with close ties to senior officials, but it narrows the bidder pool and imposes compliance costs that could raise procurement costs, delay acquisitions, and harm some businesses and employees.
Taxpayers, military personnel, and the public: procurement decisions are less likely to favor firms tied to current or recent senior federal officials, reducing conflicts of interest and increasing trust in DoD contracting.
Taxpayers: restricting awards to firms closely tied to high‑level officials reduces the risk of undue spending on contracts that benefit insiders.
Government contractors without covered current or recent senior federal officials: face improved competitive opportunities and a greater chance of winning DoD contracts when not competing with firms that have insider ties.
Military personnel and taxpayers: narrowing the pool of eligible bidders could raise contract costs or delay Defense acquisitions, potentially slowing delivery of capabilities.
Government contractors and DoD/federal procurement offices: new rules to identify covered relationships within 30 days and new thresholds create administrative burdens and ongoing compliance costs.
Firms that employ former or current senior federal officials and their employees: could lose business suddenly under the restrictions, causing economic harm and potential job losses.
Based on analysis of 2 sections of legislative text.
Bars the Secretary of Defense from contracting with entities led by or financially benefiting certain senior federal officials, Schedule C appointees, SES members, special government employees, or their immediate family.
Introduced December 12, 2025 by Steven Horsford · Last progress December 12, 2025
Prohibits the Secretary of Defense from entering into, renewing, or extending contracts or agreements to acquire goods or services from any entity when certain covered government-connected persons are officers, directors, partners, majority owners, or otherwise would substantially benefit financially from the entity. Covered persons include Presidential appointees confirmed by the Senate, Schedule C executive-branch employees, Senior Executive Service members, special government employees, and specified immediate family members. The Secretary must issue implementing regulations, including definitions and thresholds, within 30 days of enactment.