Made in America Integrity Act of 2025

Bill Number

H.R. 6239

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-11-20: Referred to the House Committee on Small Business.

Last Updated

2025-12-15T16:26:20Z

AI-Generated Summary

Purpose

The "Made in America Integrity Act of 2025" (H.R. 6239) aims to deter small businesses from misleading federal agencies by falsely claiming that their goods or services are made or produced in the United States (often called "Made in America" claims) to secure government contracts. It promotes honesty in federal contracting and supports domestic production preferences.

Key Provisions

• New Penalty Subsection: Adds a new subsection (h) to Section 16 of the Small Business Act (15 U.S.C. 645), targeting small business concerns (typically companies with fewer than 500 employees that qualify for federal small business programs).
• Application of Penalties: If a small business wins a federal contract partly or fully due to a false "Made in America" claim, it faces penalties outlined in subsection (d)(2) of the same section. These include:
• Civil penalties (fines).
• Suspension or debarment from future federal contracts.
• Other remedies like contract termination.
• Extended Debarment Period: The standard 3-year debarment (a ban from federal contracting) is extended to 5 years specifically for these false claims.
• In Addition to Other Penalties: These measures apply on top of any existing fines or punishments under federal law for fraud or misrepresentation.

Significant Changes to Existing Law

• Amendment to Small Business Act: Introduces the first specific penalties within the Small Business Act for false "Made in America" claims by small businesses, building on general fraud provisions but tailoring them to domestic production certifications.
• Longer Debarment: Increases the debarment period from 3 years to 5 years for this violation, making the consequences more severe than for other small business program infractions under subsection (d)(2).
• No changes to definitions of "Made in America" (which generally means substantial transformation in the U.S. under federal rules), but enhances enforcement.

Potential Impacts

• On Government Agencies: Federal agencies awarding contracts (e.g., Department of Defense or Small Business Administration) may see reduced false claims, leading to fairer competition and better enforcement of "Buy American" policies. This could increase administrative workload for verifying claims.
• On Citizens and Businesses: Small businesses must ensure accurate labeling, potentially encouraging genuine U.S. manufacturing and job creation. Consumers and taxpayers benefit from contracts going to legitimate domestic producers, reducing waste from fraudulent awards.
• On International Relations: Reinforces U.S. preferences for domestic goods in federal procurement, which could strain trade ties with countries exporting to the U.S. if it leads to stricter scrutiny of foreign-sourced components.

Main Stakeholders Affected

• Small Business Concerns: Primary targets; those falsely claiming U.S. production face heightened financial and operational risks, including longer bans from contracts worth billions annually.
• Federal Government and Agencies: Including the Small Business Administration (SBA), which oversees certifications, and contracting offices that rely on accurate claims for procurement decisions.
• U.S. Manufacturers and Workers: Benefit from a level playing field, potentially gaining more contracts and supporting domestic employment.
• Taxpayers: Indirectly affected through more efficient use of federal funds.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens anti-fraud measures under the False Claims Act and related laws, allowing for quicker debarment without new trials. It may lead to more litigation over what constitutes a "false claim," requiring clearer SBA guidance on U.S. production standards.
• Constitutional: Aligns with Congress's spending power (Article I, Section 8) to regulate federal procurement, promoting national economic interests without directly conflicting with free speech or due process, as penalties target verifiable falsehoods.
• Political: Supports "America First" policies by penalizing offshoring disguised as domestic production, potentially appealing to manufacturing states. It could spark debate on overregulation of small businesses versus protecting U.S. jobs, influencing future trade or procurement bills.

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

Sponsor

Rep. Van Duyne, Beth [R-TX-24]

Recent Actions

• 2025-11-20: Referred to the House Committee on Small Business.
• 2025-11-20: Introduced in House
• 2025-11-20: Introduced in House

Bill Versions

• Made in America Integrity Act of 2025 — issued 2025-11-20 — PDF (2 pages)