Countering Hate Against Israel by Federal Contractors Act

Bill Number: H.R. 3050
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Government Operations and Politics
Status: Introduced
Latest Action: 2025-04-28: Referred to the House Committee on Oversight and Government Reform.
Last Updated: 2026-01-14T16:49:38Z

AI-Generated Summary

Purpose

This legislation aims to prevent federal agencies from entering into contracts with companies that engage in boycotts against Israel, promoting fair commercial relations and countering discriminatory actions targeting Israel.

Key Provisions

Certification Requirement: Starting January 1, 2026, federal agencies cannot enter contracts over $100,000 with companies unless the company certifies it is not boycotting Israel. Contracts must also include a clause prohibiting boycotts during the contract term.
Notices and Enforcement: Agencies must include warnings about the boycott prohibition in all contract solicitations. If a violation is confirmed (via public reports or congressional notice), the agency notifies the company and posts the determination online. Contracts are terminated 30 days after notification unless the company stops the boycott to the agency's satisfaction.
Appeal Process: Companies can appeal terminations using the existing federal appeals system under U.S. procurement law (chapter 71 of title 41).
Definitions:
Company: Any business entity (e.g., corporation, partnership) with more than 10 employees, including subsidiaries and affiliates, but excluding individuals or sole proprietorships.
Boycott of Israel: Actions that limit business with Israel or Israeli entities, taken in response to boycott calls, or that discriminate based on nationality, origin, or religion without a valid business reason. It also includes company statements admitting participation in such actions.
Limitations: The law explicitly does not violate First Amendment rights (free speech protections) or address final resolutions in the Israeli-Palestinian conflict.

Significant Changes to Existing Law

This bill introduces a new federal restriction on procurement, building on prior anti-boycott laws (like those under the Export Administration Act) by extending prohibitions to all federal contracts over $100,000. It mandates certifications and contract clauses not previously required across all agencies, with standardized enforcement and termination procedures.

Potential Impacts

On Government Agencies: Increases administrative burdens for verifying certifications, issuing notices, and handling terminations or appeals, potentially limiting the pool of eligible contractors and affecting procurement efficiency.
On Citizens and Businesses: U.S. companies with over 10 employees bidding on federal contracts may face compliance costs (e.g., legal reviews, certifications) and risk losing business if involved in boycotts. It could discourage boycott participation among firms reliant on government work.
On International Relations: Strengthens U.S. support for Israel by penalizing anti-Israel economic actions, potentially straining ties with countries or groups advocating boycotts (e.g., BDS movement), while aligning with U.S. foreign policy favoring Israel.

Main Stakeholders Affected

Federal Agencies: Heads of agencies (e.g., defense, health, energy departments) responsible for procurement and enforcement.
Companies: Businesses seeking or holding federal contracts over $100,000, particularly those in international trade or with ties to Middle East markets.
Israel and Advocacy Groups: Israeli government and pro-Israel organizations benefit from reduced economic pressure; anti-boycott advocates (e.g., AIPAC) may support it.
Boycott Participants: Entities or activists involved in movements like BDS (Boycott, Divestment, Sanctions) could face indirect restrictions through affiliated companies.

Notable Legal, Constitutional, or Political Implications

Legal: Reinforces anti-discrimination in commerce but relies on agency determinations of "boycotts," which could lead to litigation over what constitutes a valid business reason versus prohibited action. The appeal process provides due process safeguards.
Constitutional: Explicitly disclaims First Amendment infringement, addressing potential free speech challenges (e.g., companies' rights to express political views via boycotts), though courts may still scrutinize if enforcement chills protected expression.
Political: Signals strong bipartisan support for Israel in Congress (introduced by Republicans but with broad implications), amid ongoing U.S. debates on foreign aid and Middle East policy. It may polarize views on economic activism as a form of protest versus discrimination.

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

Sponsor

Rep. Tenney, Claudia [R-NY-24]

Cosponsors (6)

Rep. Stefanik, Elise M. [R-NY-21], Rep. Steube, W. Gregory [R-FL-17], Rep. Lawler, Michael [R-NY-17], Rep. Cline, Ben [R-VA-6], Rep. Rutherford, John H. [R-FL-5], Rep. Yakym, Rudy [R-IN-2]

Recent Actions

2025-04-28: Referred to the House Committee on Oversight and Government Reform.
2025-04-28: Introduced in House
2025-04-28: Introduced in House

Bill Versions

Countering Hate Against Israel by Federal Contractors Act — issued 2025-04-28 — PDF (5 pages)