Sponsors (2)
The bill strengthens protections for taxpayers and procurement integrity by excluding convicted fraudsters and centralizing records, but it risks excluding people who avoided convictions, shrinking the available contractor workforce and adding administrative and political burdens on agencies.
Taxpayers and federal agencies will face reduced risk of fraud and waste because contractors and grant recipients convicted of covered fraud offenses are barred from receiving federal awards for three years, shrinking opportunities for repeat bad actors.
Federal agencies and contracting officers will get faster, centralized information (AG notification + SAM entry) that makes it easier to identify and avoid disqualified parties, improving procurement transparency and compliance.
Individuals and agencies have a path to restore eligibility because agency heads can grant waivers when exclusion would be unduly harmful or contrary to the public interest, preserving case-by-case flexibility.
People who resolved charges through deferred prosecution or withheld judgments (diversion programs) may be barred from federal awards for three years, excluding individuals who avoided formal convictions and harming their employment and rehabilitation prospects.
Available qualified personnel for federal awards could shrink—especially in specialized fields—because a blanket three-year ban can disqualify otherwise skilled workers and worsen their long-term employment prospects.
DOJ, GSA, and contracting agencies will face additional administrative workload and compliance costs to notify, record, process exclusions, and handle waiver requests and guidance—imposing operational burdens on federal staffs.
Based on analysis of 3 sections of legislative text.
Requires DOJ to report specified felony convictions tied to federal awards to GSA, which places the convicted individuals on SAM and bars them from federal awards for three years unless waived.
Introduced December 19, 2025 by Keith Self · Last progress June 9, 2026
Bars individuals convicted of certain federal felonies tied to federal contracts, grants, loans, cooperative agreements, or other federal financial assistance from receiving federal awards for three years unless an agency head grants a written waiver. The Attorney General must notify the General Services Administration (GSA) of qualifying convictions and GSA must add the individual to the System for Award Management (SAM) exclusions list promptly. Requires the Attorney General, working with the GSA Administrator, to issue implementation guidance within one year. The measure defines covered offenses and "convicted" broadly (including guilty pleas, findings of guilt, and some deferred disposition arrangements) and preserves existing criminal, civil, and suspension/debarment authorities.