Protecting Small Business Competitions Act of 2026
- Bill Number
- H.R. 2804
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2026-07-02: Placed on the Union Calendar, Calendar No. 624.
- Last Updated
- 2026-07-10T10:43:55Z
AI-Generated Summary
Summary of H.R. 2804: Protecting Small Business Competitions Act of 2026
Purpose
This legislation aims to strengthen opportunities for small businesses in federal contracting by making a long-standing policy a permanent requirement under law. It focuses on ensuring that certain contracts are set aside for small businesses when competition among them is expected.
Key Provisions
- Codification of the Rule of Two: The bill amends Section 15(j) of the Small Business Act to add a new paragraph requiring that covered contracts for goods or services (with an anticipated value above the simplified acquisition threshold) must be reserved for small business concerns if a contracting officer reasonably expects:
- Offers from two or more responsible small business concerns.
- The contract to be awarded at a fair market price.
- Definition of Covered Contract: This requirement applies only to new contracts and explicitly excludes delivery orders or task orders.
- Short Title: The Act is named the "Protecting Small Business Competitions Act of 2026."
Significant Changes to Existing Law
- The Rule of Two, previously a regulatory policy, becomes a statutory requirement in the Small Business Act, making it binding law rather than an administrative guideline.
- This addition creates a mandatory reservation process for qualifying contracts, which was not explicitly codified in this section before.
Potential Impacts
- Government Agencies: Federal contracting officers and agencies must adjust procurement practices to check for expected small business competition before proceeding with open bidding on applicable contracts, potentially increasing administrative steps in the award process.
- Citizens and Businesses: Small businesses gain more protected access to federal contracts, which may lead to increased participation and competition in the small business sector.
- International Relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Small business concerns seeking federal contracts.
- Federal contracting officers and agencies responsible for procurement.
- Larger businesses that may face reduced access to contracts previously open to broader competition.
Notable Legal, Constitutional, or Political Implications
- The bill embeds a specific contracting preference into federal statute, which could lead to future legal challenges regarding its application or consistency with broader procurement laws.
- It reinforces congressional support for small business set-asides without altering constitutional procurement authorities.
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 (4)
Rep. Cisneros, Gilbert Ray, Jr. [D-CA-31], Rep. Davids, Sharice [D-KS-3], Rep. Case, Ed [D-HI-1], Rep. Williams, Roger [R-TX-25]
Recent Actions
- 2026-07-02: Placed on the Union Calendar, Calendar No. 624.
- 2026-07-02: Reported (Amended) by the Committee on Small Business. H. Rept. 119-719.
- 2026-07-02: Reported (Amended) by the Committee on Small Business. H. Rept. 119-719.
- 2026-05-20: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 0.
- 2026-05-20: Committee Consideration and Mark-up Session Held
- 2025-04-09: Referred to the House Committee on Small Business.
- 2025-04-09: Introduced in House
- 2025-04-09: Introduced in House
Bill Versions
- Protecting Small Business Competitions Act of 2025 — issued 2025-04-09 — PDF (2 pages)
- Protecting Small Business Competitions Act of 2026 — issued 2026-07-02 — PDF (4 pages)