Sponsors
The bill tightens contracting rules, disclosure, and penalties to protect U.S. national security and procurement integrity, but does so at the cost of reduced market access and competition for some U.S. firms, higher compliance and litigation burdens, potential procurement delays and higher costs, and uncertainty about implementation funding.
Federal agencies and U.S. taxpayers: the bill limits contractors' ties to adversary or covered foreign entities and authorizes use of Commerce/OFAC/DoD lists and State Department terrorism findings to keep sensitive work away from risky actors, strengthening national security and supply-chain protection.
Taxpayers and agency procurement offices: the bill reduces conflicts of interest and increases oversight (certifications, waiver limits, transparency, consultations, and reporting), improving procurement integrity and limiting prolonged reliance on conflicted firms.
Taxpayers and government integrity: the bill increases contractor accountability by enabling suspension/debarment, False Claims Act treble-damages exposure for false reporting, and quicker contract termination for misconduct, deterring concealment of risky foreign ties and fraud.
U.S. firms and workers (especially consultancies and mid-size/multinationals): the bill may bar or force firms to forgo foreign clients or markets, reducing revenue and risking job losses.
Federal programs and taxpayers: tighter exclusions and reduced competition may shrink the pool of qualified contractors, slow procurements, and drive up costs for defense and other federal projects.
States, localities, nonprofits, and intended beneficiaries: the bill bars additional appropriations to implement the Act, risking incomplete implementation, underfunded programs, or uncertainty/shortfalls for entities expecting federal support.
Based on analysis of 6 sections of legislative text.
Bars firms advising specified foreign entities from receiving federal consulting contracts unless they certify no such ties; allows narrow waivers, requires disclosures, and enables penalties for false certification.
Introduced April 24, 2025 by Robert P. Bresnahan · Last progress April 24, 2025
Bars firms that provide consulting services to certain foreign governments, entities, or affiliates from receiving federal consulting contracts unless they certify they do not hold such foreign consulting relationships. Agencies must adopt this rule in the Federal Acquisition Regulation within one year, may grant narrow time-limited waivers under strict conditions, and must terminate or pursue penalties against contractors who knowingly misrepresent their foreign consulting ties. Requires contractors who receive waivers to provide detailed disclosures, report human-rights or religious-liberty violations discovered while performing federal contracts, and exposes violators to contract termination, suspension/debarment consideration, and False Claims Act liability. The Act defines covered foreign entities broadly (including specified PRC and Russian entities, Commerce and Treasury restricted lists, and governments designated for terrorism support) and does not authorize new appropriations for implementation.