WOSB Accountability Act
- Bill Number
- H.R. 1816
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Passed House
- Latest Action
- 2025-06-04: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2026-07-10T19:43:25Z
AI-Generated Summary
Legislation Summary: WOSB Accountability Act (H.R. 1816)
Purpose
The WOSB Accountability Act aims to improve accountability in federal contracting programs for small businesses owned and controlled by women (WOSBs). It requires formal certification for these businesses to count toward government contracting goals, shifting away from self-certification to ensure only verified businesses receive credit.
Key Provisions
- Exclusion from Goals: Only WOSBs that receive official certification under Section 8(m)(2)(E) of the Small Business Act will count toward:
- Governmentwide goals for WOSB contracts (5% of federal contracting dollars).
- Agency-specific goals set by federal departments.
- Transitional Rules for Self-Certified Businesses:
- Businesses already self-certified as WOSBs as of the effective date (two fiscal years after the Small Business Administration (SBA) issues regulations) can continue counting toward goals if they apply for certification beforehand and no decision has been made yet.
- These businesses are treated as certified until the SBA or an approved national certifying entity reviews their application.
- Regulatory Timeline: The SBA must issue regulations to implement these changes within one year of the Act's enactment.
- Congressional Oversight: The SBA must provide quarterly briefings to the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship for up to two years. Briefings cover:
- Expected number of certification applicants.
- Pending applications and processing times.
- Approvals, costs (to SBA and applicants), and outreach efforts.
- Recommendations for additional resources.
- Funding Limitation: No new funds are authorized; implementation must use existing SBA resources.
- Definitions: Clarifies terms like "small business concern" (businesses meeting SBA size standards) and "small business concern owned and controlled by women" (at least 51% owned and controlled by women who manage daily operations).
Significant Changes to Existing Law
- Amends Section 15(g) of the Small Business Act (15 U.S.C. 644(g)) by adding a new paragraph excluding self-certified WOSBs from federal contracting goals, effective two fiscal years after SBA regulations are issued.
- Previously, self-certified WOSBs could count toward goals without formal verification, allowing easier participation but raising concerns about accuracy. This Act mandates certification through the SBA or approved entities, ending reliance on self-reporting for goal calculations.
- Introduces temporary "deemed certification" for pending applications to ease the transition, preventing immediate disruption for existing participants.
Potential Impacts
- Government Agencies: Federal agencies must adjust contracting practices to prioritize certified WOSBs for goal credits, potentially slowing procurement if certification backlogs occur. This could lead to more rigorous verification but ensure goals reflect genuine WOSB participation.
- Citizens and Businesses: Women-owned small businesses may face new costs and delays in certification (e.g., application fees to national entities), but it promotes fairness by weeding out ineligible firms. Overall, it could strengthen the WOSB program, increasing opportunities for verified businesses while requiring others to comply.
- International Relations: Minimal direct impact, as the Act focuses on domestic federal contracting; however, it may indirectly affect U.S. companies with international ties if they rely on WOSB status for government work.
Main Stakeholders
- Small Business Administration (SBA): Responsible for regulations, certifications, and briefings; will handle increased administrative workload without extra funding.
- Women-Owned Small Businesses (WOSBs): Directly affected, as they must seek certification to benefit from contracting goals; includes both currently self-certified and new applicants.
- Federal Agencies: Procurement offices (e.g., Department of Defense, General Services Administration) that set and report on WOSB goals.
- National Certifying Entities: Approved third-party organizations that can process certifications, sharing the load with SBA.
- Congress: Oversight committees monitoring implementation and potential need for future resources.
Notable Implications
- Legal: Enhances compliance with the Small Business Act by tying benefits to verified status, reducing risks of fraud or misrepresentation in federal contracting. The transitional provisions mitigate legal challenges from abrupt changes.
- Constitutional: Aligns with equal protection principles by focusing on verifiable criteria for women-owned businesses, without altering core anti-discrimination frameworks.
- Political: Promotes transparency and accountability in small business programs, potentially addressing criticisms of self-certification loopholes. However, no new funding could strain SBA resources, leading to calls for additional appropriations; it may influence broader debates on federal support for underrepresented entrepreneurs.
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 (3)
Rep. LaLota, Nick [R-NY-1], Rep. Goodlander, Maggie [D-NH-2], Rep. Fitzpatrick, Brian K. [R-PA-1]
Recent Actions
- 2025-06-04: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2025-06-03: Motion to reconsider laid on the table Agreed to without objection.
- 2025-06-03: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2393-2394)
- 2025-06-03: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2393-2394)
- 2025-06-03: DEBATE - The House proceeded with forty minutes of debate on H.R. 1816.
- 2025-06-03: Considered under suspension of the rules. (consideration: CR H2393-2395)
- 2025-06-03: Mr. Williams (TX) moved to suspend the rules and pass the bill, as amended.
- 2025-03-24: Placed on the Union Calendar, Calendar No. 26.
- 2025-03-24: Reported by the Committee on Small Business. H. Rept. 119-37.
- 2025-03-24: Reported by the Committee on Small Business. H. Rept. 119-37.
- 2025-03-05: Ordered to be Reported by the Yeas and Nays: 25 - 0.
- 2025-03-05: Committee Consideration and Mark-up Session Held
- 2025-03-03: Referred to the House Committee on Small Business.
- 2025-03-03: Introduced in House
- 2025-03-03: Introduced in House
Bill Versions
- WOSB Accountability Act — issued 2025-06-03 — PDF (8 pages)
- WOSB Accountability Act — issued 2025-03-03 — PDF (6 pages)
- WOSB Accountability Act — issued 2025-06-04 — PDF (7 pages)
- WOSB Accountability Act — issued 2025-03-24 — PDF (8 pages)