Sponsors (5)
The bill strengthens national‑security protections and procurement oversight by restricting contracting relationships with adversarial or sanctioned entities and increasing transparency and enforcement, but it does so at the cost of higher compliance and legal burdens, reduced contractor access to foreign markets, possible supply‑chain and readiness disruptions, and pressure on agency budgets.
Federal agencies, taxpayers, and service members will face fewer conflicts of interest and lower risk of covert foreign influence because the bill restricts contracting or consulting relationships with covered adversarial or sanctioned entities and requires screening/clearance.
Federal procurement officials and the public will gain stronger integrity, oversight, and enforcement tools (publication of waived contractors, reporting requirements, management plans, and removal/False Claims Act remedies) to detect, deter, and punish conflicts and fraud in defense and other federal contracts.
Taxpayers will have greater financial protection because the bill enables financial accountability (False Claims Act remedies and treble damages) and does not authorize new spending for implementation, limiting immediate deficit impact.
Government contractors and their employees (especially in consulting/NAICS 5416) may lose foreign clients, revenue, and jobs because firms may have to choose between foreign consulting work and eligibility for federal contracts, reducing competition for federal procurements.
Companies and federal agencies will face substantial new compliance and administrative burdens—more disclosures, ongoing reporting, waiver management, investigations, and potential litigation—which can raise contractors' costs and increase program overhead for taxpayers.
Military readiness and critical projects may be disrupted if bans or restrictions remove skilled vendors or force rapid supply‑chain changes, delaying programs or increasing costs when agencies cannot quickly obtain required expertise.
Based on analysis of 6 sections of legislative text.
Bars firms that consult for specified foreign adversaries from receiving federal consulting contracts unless they certify no such ties, with limited waivers, reporting, and penalties.
Prohibits firms that provide consulting services to specified foreign adversaries from receiving federal consulting contracts unless they certify they and their affiliates have no such contracts, with a limited, documented waiver process for national-security reasons. Establishes reporting and disclosure obligations for contractors, creates penalties (including contract termination and False Claims Act remedies) for false statements or hidden foreign ties, defines covered foreign entities, and requires the FAR be amended within one year to implement these rules without new appropriations.
Introduced February 25, 2025 by Joshua David Hawley · Last progress February 25, 2025