Sponsors (2)
The bill strengthens oversight by excluding people convicted of serious contract-related felonies from federal contracting for three years and centralizing enforcement, trading off reduced business opportunities for some, added agency compliance costs, and potential fairness and consistency concerns in how exclusions and waivers are applied.
Taxpayers and federal contractors are less likely to have federal funds awarded to individuals or entities convicted of serious contract-related felonies because those people are excluded from contracting for three years after conviction.
Federal agencies get a clear, centralized process (Attorney General notification to GSA and SAM exclusion) to identify and block convicted individuals, improving oversight and contract integrity.
Agency heads retain flexibility through a case-by-case waiver process with required written notice to Congress, allowing urgent or exceptional procurements while adding transparency.
Small businesses and individuals tied to covered convictions can lose access to federal contracts and grants for three years, reducing revenue opportunities and potentially harming business viability.
People who entered pleas, deferred adjudication, or other nontraditional dispositions may be treated as 'convicted' and thus barred from contracting, raising fairness and due-process concerns for applicants who avoided formal convictions.
Agencies will incur added administrative burdens and compliance costs to implement AG notifications, update SAM, issue OMB guidance, and revise the FAR, which could divert staff time and resources.
Based on analysis of 2 sections of legislative text.
Prohibits federal contracts, grants, or federal financial assistance for three years for people (or entities they beneficially own) convicted of specified federal felonies, with a waiver option.
Official title: To amend title 31, United States Code, to prohibit Federal Funds from being provided to individuals convicted of certain Federal felonies, and for other purposes.
Introduced December 19, 2025 by Keith Self · Last progress June 9, 2026
Bars federal agencies from awarding, renewing, or extending contracts, grants, or other financial assistance to people convicted of specified federal felonies (or entities controlled by them) for three years after conviction. It requires the Attorney General to notify GSA of covered convictions so GSA can add those individuals or entities to the SAM exclusions list, and directs OMB to issue implementation guidance within one year. Allows agency heads to grant case-by-case waivers if they notify Congress in writing immediately with justification. The prohibition applies to convictions that occur after enactment and defines key terms like "beneficial owner," "convicted," and which felony offenses are covered.