Freedom from Government Competition Act of 2025

This bill, called the “Freedom from Government Competition Act of 2025,” would make most federal agencies buy the goods and services they need from private companies instead of doing that work themselves, unless a clear exception applies. It says the government should rely on the private market and avoid competing with it, while keeping truly core government work with federal employees. Exceptions include when the law requires an agency to do the work, when it’s needed for national defense or homeland security, when the task is a core government duty or critical to the agency’s mission, or when no private company can do it.

Agencies could meet this rule by selling off activities, awarding competitive contracts, or after a review that shows hiring a company offers the best value for taxpayers; agencies could also bring work back in‑house if a review shows that would save money. The Office of Management and Budget (OMB) would write the rules, and states and local governments would have to follow them when spending federal funds. OMB must also report to Congress every year by June 30 and include a plan to move “commercial” work to the private sector within five years of each report. The bill is built on the finding that private businesses are generally more efficient and that unfair government competition hurts the economy.

Key points

• Who is affected: Federal agencies and employees; private businesses that can provide goods and services; states and local governments that use federal funds .
• What changes: Most non‑core work would be contracted out; clear exceptions are allowed; OMB sets rules; annual reviews and plans to shift work within five years.
• When: Yearly OMB reports are due by June 30, and each report must include a five‑year schedule to transfer eligible work to private companies.