Skills-Based Federal Contracting Act of 2025
- Bill Number
- H.R. 5235
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Passed House
- Latest Action
- 2026-02-24: Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2026-02-25T11:56:30Z
AI-Generated Summary
Purpose of the Legislation
The Skills-Based Federal Contracting Act of 2025 aims to promote flexibility in federal contracting by limiting the use of minimum education requirements (such as degrees or specific coursework) for proposed contractor personnel. It encourages a focus on skills and experience instead, unless such requirements are strictly justified as necessary to meet agency needs.
Key Provisions
- Prohibition on Minimum Education Requirements: Federal contract solicitations (requests for bids) cannot impose minimum education standards for bidder eligibility unless the contracting officer provides a written justification explaining why the agency's needs cannot be met without it and how it ensures those needs are fulfilled. This applies to executive agencies (federal departments and independent agencies, excluding Congress and courts).
- Definitions:
- Education: Refers to degrees (associate, bachelor's, graduate, or professional) or specified coursework from accredited colleges, universities, or state-approved institutions.
- Education Requirement: Includes mandates met solely by education, education combined with experience, or education as an alternative to experience.
- Guidance from Office of Management and Budget (OMB): Within 180 days of enactment, OMB must issue instructions to executive agencies, including how contracting officers should justify and review education requirements, and encourage alternatives like skills assessments.
- Applicability and Timeline: The rules apply to solicitations issued 15 months after enactment.
- Repeal of Prior Law: Repeals a 2001 provision (Section 813 of the Floyd D. Spence National Defense Authorization Act) that allowed certain education requirements in federal IT contracts, as implemented in federal regulations.
- Government Accountability Office (GAO) Report: Within 3 years of enactment, GAO must evaluate and report to Congress on executive agencies' compliance with the new rules.
Significant Changes to Existing Law
- Amends Chapter 33 of Title 41, United States Code (which governs federal procurement planning and solicitation), by adding a new Section 3313 to require justifications for education requirements, shifting from potentially automatic use of such criteria to a more restrictive, case-by-case approach.
- Eliminates the 2001 repeal target, which permitted education mandates in specific federal acquisition regulations (e.g., for IT contracts), promoting broader flexibility across all executive agency solicitations.
- Introduces mandatory OMB guidance and GAO oversight, which were not previously required for this aspect of contracting.
Potential Impacts
- On Government Agencies: Contracting processes may become more efficient by expanding the pool of eligible bidders, potentially reducing costs and improving access to diverse talent. However, agencies must invest time in justifications and alternative assessments, with OMB guidance to standardize implementation.
- On Citizens: Individuals without formal degrees but with relevant skills or experience (e.g., through apprenticeships or on-the-job training) could gain more opportunities to work on federal contracts, reducing barriers to employment in government-related roles.
- On International Relations: No direct impacts, as the law focuses on domestic federal procurement and does not address foreign contractors or international agreements.
Main Stakeholders Affected
- Executive Agencies: Must adapt solicitation practices, with contracting officers bearing responsibility for justifications.
- Potential Contractors and Personnel: Businesses and workers without advanced degrees benefit from reduced eligibility barriers, potentially increasing competition and innovation in bidding.
- Office of Management and Budget (OMB): Responsible for issuing implementation guidance.
- Government Accountability Office (GAO): Tasked with compliance monitoring and reporting to Congress.
- Congress: Receives the GAO report and oversees broader federal acquisition policy.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens federal acquisition laws by embedding accountability (justifications and reviews) into procurement rules, potentially leading to challenges if agencies fail to comply. It aligns with existing Federal Acquisition Regulation principles but narrows the use of education as a proxy for qualifications.
- Constitutional Implications: None significant; the law operates within Congress's authority over federal spending and procurement under Article I, without infringing on individual rights or state powers.
- Political Implications: Encourages a "skills-based" approach to hiring, which could appeal to efforts to address workforce shortages and credential inflation, but may spark debate over whether it sufficiently protects against unqualified personnel in critical roles like national security or public health.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Perez, Marie Gluesenkamp [D-WA-3]
Recent Actions
- 2026-02-24: Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2026-02-23: Motion to reconsider laid on the table Agreed to without objection.
- 2026-02-23: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2247)
- 2026-02-23: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2247)
- 2026-02-23: DEBATE - The House proceeded with forty minutes of debate on H.R. 5235.
- 2026-02-23: Considered under suspension of the rules. (consideration: CR H2247-2248)
- 2026-02-23: Mr. Timmons moved to suspend the rules and pass the bill, as amended.
- 2025-12-02: Ordered to be Reported (Amended) by the Yeas and Nays: 44 - 0.
- 2025-12-02: Committee Consideration and Mark-up Session Held
- 2025-09-09: Referred to the House Committee on Oversight and Government Reform.
- 2025-09-09: Introduced in House
- 2025-09-09: Introduced in House
Bill Versions
- Skills-Based Federal Contracting Act of 2025 — issued 2026-02-23 — PDF (6 pages)
- Skills-Based Federal Contracting Act — issued 2025-09-09 — PDF (4 pages)
- Skills-Based Federal Contracting Act of 2025 — issued 2026-02-24 — PDF (5 pages)