End Race and Sex Contracting Preferences

Summary#

This bill would end federal contracting preferences based on race, ethnicity, or sex. It removes set‑asides and goals for “socially and economically disadvantaged” and women‑owned small businesses across many laws and programs. It keeps preferences for HUBZone small businesses (in under‑served areas) and for service‑disabled veteran‑owned small businesses.

• Ends the SBA’s disadvantaged (8(a)) and women‑owned small business contracting preferences and related goals.
• Repeals the Minority Business Development Agency (MBDA) law from 2021.
• Bars all federal agencies and the Defense Department from using race, ethnicity, or sex in awarding contracts or grants, or requiring contractors to do so.
• Lowers the airport contracting participation goal tied to federal grants from 10% to 5% and removes disadvantaged‑business preferences in that program.
• Requires agencies to remove related rules and guidance within 60 to 180 days after the bill becomes law.
• Keeps HUBZone and service‑disabled veteran‑owned small business programs.

What it means for you#

• Small businesses

  • If you relied on 8(a) or women‑owned set‑asides, you would no longer get those preferences for federal contracts.
  • If you are in a HUBZone or are a service‑disabled veteran‑owned business, your programs stay in place.
  • All firms would compete on the same terms without race, ethnicity, or sex‑based preferences.

• Minority‑ and women‑owned businesses

  • Federal set‑asides and subcontracting goals aimed at your ownership status would end.
  • MBDA business centers and grants created under the 2021 law would be repealed, which could reduce training and technical help that some firms receive from MBDA.

• Prime contractors and grant recipients

  • You would no longer be required or encouraged by the federal government to meet race, ethnicity, or sex‑based subcontracting goals.
  • Compliance paperwork tied to disadvantaged and women‑owned goals would likely shrink. HUBZone and veteran‑owned requirements would remain.

• Airports and transportation grantees

  • The target for participation tied to federal airport improvement grants would drop from 10% to 5%.
  • Disadvantaged Business Enterprise (DBE) preferences tied to race, ethnicity, or sex in these grants would be removed.

• Federal agencies

  • You must change rules and guidance to strip out race, ethnicity, and sex‑based contracting preferences within 60–180 days.
  • Reporting would shift away from tracking awards to disadvantaged and women‑owned firms; HUBZone tracking would remain.

• Taxpayers

  • Overall federal contracting dollars would not change by this bill’s text, but who wins contracts could shift.
  • Some administrative costs may fall as agencies and contractors drop certain compliance steps.

Expenses#

No publicly available information.

Proponents' View#

• Treats all bidders the same and ends what they see as discrimination in government contracting.
• Focuses awards on price and performance rather than owner demographics, which supporters say will increase competition and could lower costs.
• Reduces fraud and abuse risks they argue have occurred in preference programs.
• Cuts red tape for agencies and contractors by removing multiple goal‑setting and reporting rules.
• Keeps help targeted by place (HUBZone) and for service‑disabled veterans while removing preferences based on race, ethnicity, or sex.

Opponents' View#

• Removes tools that aimed to open doors for firms owned by minorities and women, which could reduce their share of federal work.
• Shutters MBDA’s expanded role, likely cutting training, financing help, and networking that some businesses rely on.
• Makes it harder to track inclusion by ending some reporting on awards to disadvantaged and women‑owned firms.
• Could harm local economies where many minority‑ and women‑owned firms depend on federal contracts and airport projects.
• May undercut longstanding transportation DBE efforts by lowering participation targets and removing related preferences.