Time to Choose Act of 2025
- Bill Number
- H.R. 2989
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-04-24: Referred to the House Committee on Oversight and Government Reform.
- Last Updated
- 2026-05-18T15:20:39Z
AI-Generated Summary
Purpose of the Legislation
The "Time to Choose Act of 2025" (H.R. 2989) aims to prevent conflicts of interest in federal contracting by prohibiting consulting firms from simultaneously providing services to the U.S. government and certain foreign entities (like China or Russia) that could undermine U.S. economic or national security. It requires firms to choose between U.S. contracts and those with "covered foreign entities," based on findings that such dual roles create risks to American interests.
Key Provisions
- Certification Requirement: The Federal Acquisition Regulatory Council (which oversees federal procurement rules) must amend the Federal Acquisition Regulation (FAR, the main set of rules for government contracts) within one year of enactment. Any firm bidding on consulting services contracts with executive agencies (like the Department of Defense) must certify that neither it nor its subsidiaries/affiliates has a consulting contract with covered foreign entities. Consulting services include advisory work under North American Industry Classification System (NAICS) code 5416, which covers management, scientific, and technical consulting (e.g., strategy, policy analysis).
- Prohibition on Awards: Federal contracts for these services cannot be awarded to firms that fail the certification or are found to provide services to covered foreign entities.
- Waiver Process: Agency heads can grant case-by-case waivers if it's in the national security interest, no conflict-free alternative exists, and other conditions are met (e.g., consultations with the Secretary of Defense and Director of National Intelligence). Waivers require notifications to the Office of Management and Budget (OMB) and congressional committees (Senate Homeland Security and Governmental Affairs; House Oversight and Government Reform), plus public disclosure of foreign clients (unless it harms security). Waivers last up to 365 days, with one possible 180-day extension; only one waiver per entity at a time. Notifications must detail contractor info, foreign ties, contract nature, and a management plan to avoid conflicts. Waived contractors must report any human rights violations, religious liberty issues, or security risks discovered.
- Penalties for Violations: If a firm knowingly provides false certification or information, the agency must terminate the contract and consider suspending or barring the firm from future contracts (per FAR subpart 9.4, which handles contractor responsibility). Violations also trigger the False Claims Act (a law penalizing fraud against the government, including triple damages).
- Definitions:
- Covered Foreign Entity: Includes the Chinese government, Communist Party, military, or intelligence agencies; Russian government or sanctioned entities; governments supporting terrorism (as determined by the Secretary of State); entities on U.S. export control lists (e.g., Commerce Department's Entity List for restricted tech exports); or those identified by the Defense Secretary as foreign military companies.
- Excludes routine services like legal compliance or dispute resolution.
- No additional funding is authorized for implementation.
Significant Changes to Existing Law
- Introduces a new mandatory self-certification and prohibition in the FAR specifically targeting conflicts with covered foreign entities in consulting services—previously, FAR addressed general conflicts of interest but not this targeted foreign security risk.
- Adds waiver mechanisms with strict oversight (e.g., congressional notifications and public reporting), which expand on existing FAR flexibility but tie it to national security reviews.
- Enhances penalties by explicitly linking false certifications to False Claims Act liability and debarment, strengthening enforcement beyond standard contract rules.
Potential Impacts
- Government Agencies: Procurement processes will become more rigorous, potentially delaying contracts and increasing administrative burdens (e.g., reviews and certifications). Agencies like the Department of Defense may rely more on domestic or non-conflicted firms, but waivers allow flexibility for critical needs without new funding.
- Citizens: Could enhance national security by reducing risks of sensitive information or strategies leaking to adversarial foreign entities, indirectly protecting economic interests and public safety from foreign influence.
- International Relations: May heighten tensions with countries like China and Russia by restricting U.S. firms' business there, signaling stronger U.S. efforts to counter foreign economic/military threats. It could encourage allies to adopt similar measures but strain trade ties with affected nations.
Main Stakeholders Affected
- Consulting Firms: Large firms (e.g., those in management consulting under NAICS 5416) with global clients, especially subsidiaries or affiliates tied to China/Russia, face the biggest restrictions—potentially losing U.S. contracts worth billions unless they divest foreign ties.
- U.S. Government Agencies: Executive agencies awarding contracts (e.g., Defense, intelligence) must implement changes, conduct waivers, and monitor compliance.
- Covered Foreign Entities: Governments and companies in China, Russia, or on U.S. sanction lists may lose access to U.S. consulting expertise, impacting their strategies.
- Congress and Oversight Bodies: Committees gain notification and briefing roles, increasing their influence on procurement decisions.
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on existing FAR authority to regulate conflicts, with enforceable penalties via the False Claims Act (which imposes civil and criminal liability for defrauding the government). Self-certification shifts initial burden to contractors, but agencies retain verification power; potential for lawsuits if waivers are denied or certifications challenged.
- Constitutional: Aligns with Congress's powers under the Commerce Clause (regulating interstate/international commerce) and national security authority, but could face scrutiny if waivers are seen as overly restrictive on free enterprise or international business—though national security justifications likely uphold it.
- Political: Addresses bipartisan concerns over foreign influence (e.g., espionage risks from dual-role firms), promoting "America First" procurement without new spending. It may spark debate on balancing security with economic openness, especially for firms in competitive global markets.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Bresnahan, Robert [R-PA-8]
Recent Actions
- 2025-04-24: Referred to the House Committee on Oversight and Government Reform.
- 2025-04-24: Introduced in House
- 2025-04-24: Introduced in House
Bill Versions
- Time to Choose Act of 2025 — issued 2025-04-24 — PDF (15 pages)