WOSB Certification Expansion and Opportunity Act

Bill Number

H.R. 1586

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-02-25: Referred to the House Committee on Small Business.

Last Updated

2025-06-11T15:36:19Z

AI-Generated Summary

Purpose of the Legislation

The WOSB Certification Expansion and Opportunity Act (H.R. 1586) aims to strengthen the federal contracting program for Women-Owned Small Businesses (WOSBs) by requiring formal certification for these businesses to count toward government contracting goals. This ensures that only verified WOSBs receive credit in meeting federal targets for awarding contracts to such businesses, promoting fairness and accuracy in the program.

Key Provisions

• Exclusion of Self-Certified WOSBs from Goals: Amends the Small Business Act to specify that only WOSBs certified by the Small Business Administration (SBA) or an approved national certifying entity can be included when calculating:
• Governmentwide goals for WOSB contracts (at least 5% of federal prime contracts).
• Agency-specific goals set by federal departments.
• Transitional Deeming Provision: Self-certified WOSBs that apply for certification before the law's effective date will be treated as certified (for goal calculations) until the SBA or an approved entity makes a final determination on their application. This applies to businesses already self-certified as of the effective date.
• Rulemaking Requirement: The SBA Administrator must issue regulations to implement these changes within one year of the bill's enactment.
• Quarterly Congressional Briefings: Starting 60 days after enactment and continuing until the effective date, the SBA must provide quarterly updates to the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship. These briefings cover:
• Expected number of certification applicants.
• Pending and approved applications.
• Processing timelines and costs (for SBA and applicants).
• Outreach efforts to WOSBs and federal agencies.
• Recommendations for additional resources or legislative changes.
• Effective Date: Changes take effect on the first day after the end of the second fiscal year following the issuance of required regulations.
• No Additional Funding: The bill complies with the Congressional Budget Office's pay-as-you-go rules (CUTGO), meaning no new appropriations are authorized.

Significant Changes to Existing Law

• Under current law (Section 15(g) of the Small Business Act), self-certified WOSBs can count toward federal contracting goals without formal verification. This bill eliminates that, mandating certification under Section 8(m)(2)(E) of the Small Business Act for inclusion in goal calculations.
• Introduces a certification application process through the SBA or approved third-party entities (e.g., Women's Business Centers or other national organizations), shifting from a self-attestation model to a verified one.
• Adds oversight through mandatory briefings, which did not previously exist for this specific transition.

Potential Impacts

• On Government Agencies: Federal agencies may face challenges in meeting WOSB contracting goals if fewer businesses qualify due to the certification requirement, potentially requiring adjustments in procurement strategies or outreach to certified WOSBs.
• On Citizens (WOSB Owners): Women entrepreneurs owning small businesses will need to pursue formal certification to benefit from set-aside contracts, which could increase administrative burdens and costs but ensure more credible access to federal opportunities. During the transition, existing self-certified businesses are protected from immediate exclusion.
• On International Relations: No direct impacts, as the bill focuses on domestic small business contracting.
• Broader Economic Effects: Could enhance program integrity, reducing fraud risks in WOSB designations, but may temporarily slow goal attainment until certification processes scale up.

Main Stakeholders Affected

• Small Business Administration (SBA): Responsible for rulemaking, certifications, and reporting; will incur additional administrative workload and costs.
• Women-Owned Small Businesses (WOSBs): Primary beneficiaries, but must navigate certification to participate in goal-eligible contracts; includes the estimated thousands of currently self-certified firms needing to apply.
• Federal Agencies and Procuring Entities: Must adapt contracting practices to prioritize certified WOSBs for goal compliance.
• Congressional Committees: House and Senate small business committees receive briefings and can influence future adjustments based on SBA recommendations.
• National Certifying Entities: Approved third-party organizations (e.g., under SBA's 8(m) program) will handle some certifications, sharing the workload.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Reinforces the Small Business Act's framework by emphasizing verification to prevent misuse of WOSB status, potentially reducing legal challenges related to fraudulent claims. The transitional deeming provision avoids abrupt disruptions, ensuring due process for existing self-certified businesses.
• Constitutional Implications: Aligns with equal protection principles by promoting opportunities for women-owned businesses without creating new classifications; no apparent conflicts with commerce or spending clause authorities.
• Political Implications: Supports bipartisan efforts (introduced by Reps. Velazquez and LaLota) to expand opportunities for underrepresented groups in federal contracting, but the no-funding clause may limit implementation scope without future appropriations. Could spark debates on administrative burdens versus program integrity.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Velázquez, Nydia M. [D-NY-7]

Cosponsors (1)

Rep. LaLota, Nick [R-NY-1]

Recent Actions

• 2025-02-25: Referred to the House Committee on Small Business.
• 2025-02-25: Introduced in House
• 2025-02-25: Introduced in House

Bill Versions

• WOSB Certification Expansion and Opportunity Act — issued 2025-02-25 — PDF (6 pages)