The bill strengthens protections, transparency, and enforcement against child labor in federal contracting—giving children and the public greater safeguards—while imposing notable compliance costs, procurement constraints, and a funding ban that could limit or delay actual implementation.
Children and families: federal procurement changes, higher civil penalties, strengthened enforcement training, and GAO oversight together increase protection against unlawful child labor in federal supply chains.
Taxpayers and the public: agencies must publish names/addresses of contractors with final child-labor findings and GAO will study contractor compliance, improving transparency and enabling targeted congressional and public oversight.
Employers/firms that acknowledge violations have a path to remedy: the Secretary can negotiate corrective actions so businesses can potentially cure problems and regain eligibility for federal contracts.
Federal agencies and beneficiaries: a prohibition on new spending to implement the Act may prevent or delay enforcement and services, forcing agencies to reallocate funds or scale back other programs.
Small contractors and subcontractors face higher compliance costs, multi-year debarments, and exposure to False Claims Act liability for inaccurate certifications or omissions, risking significant financial penalties and business disruption.
Taxpayers and agencies could face higher procurement costs or slower procurements because bans on contracting with listed entities may narrow the vendor pool and reduce competition.
Based on analysis of 7 sections of legislative text.
Requires federal contractors to certify past child-labor findings, blocks awards for noncompliant firms, raises penalties, mandates agency training and a GAO study, with no new funding.
Introduced March 10, 2025 by Joshua David Hawley · Last progress March 10, 2025
Adds new procurement and enforcement rules to stop child labor by federal contractors. It requires companies bidding for executive-branch contracts to annually report and certify whether they or their subcontractors have been found to have violated the child-labor law, and bars awards to entities that admit violations and fail to implement negotiated corrective measures. It also raises civil penalties for child-labor violations, orders the Labor Department to provide training for agency staff on detecting child-labor violations, directs a Government Accountability Office study on contractor violations, and prohibits new appropriations for carrying out the law. The Federal Acquisition Regulation must be updated within 18 months to include these annual representations and certifications, and the increased penalties apply to violations occurring on or after enactment. The law requires referrals to the Department of Labor for corrective negotiations and creates additional compliance and reporting duties for contractors and subcontractors, without authorizing new funding to implement the requirements.