BASIC Act

Bill Number

H.R. 6658

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Government Operations and Politics

Status

Introduced

Latest Action

2025-12-11: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-04-02T15:50:10Z

AI-Generated Summary

Purpose of the Legislation

The Ban on Self-Interested Contracting Act (BASIC Act) aims to prevent conflicts of interest among special Government employees (SGEs)—temporary or intermittent federal workers serving no more than 130 days in a year—by prohibiting them from personally benefiting from large federal contracts or grants awarded by their employing agency. It also seeks to increase public transparency about SGEs' roles and finances to promote accountability in government contracting.

Key Provisions

• Prohibition on Awards (Section 2):
• Adds a new Section 221 to Title 18 of the U.S. Code, making it illegal for SGEs to knowingly demand, seek, receive, or agree to receive "covered Federal awards" (contracts, grants, cooperative agreements, or similar instruments worth more than $1 million annually) from their employing agency.
• Violations carry penalties under existing law (Section 216), which can include fines or imprisonment.
• Covers indirect benefits, such as awards to family members (e.g., spouse, child) or organizations where the SGE holds a leadership role (e.g., officer, director) and would assist in the work or receive compensation linked to the award.
• Exceptions apply to SGEs who only serve on advisory committees (groups providing expert advice to the government), have low-level duties (comparable to a GS-10 federal pay grade or below, roughly mid-level administrative roles), or hold student-designated positions.
• Requires updates to the Federal Acquisition Regulation (rules for government procurement) and related regulations within 60 days of enactment to enforce the ban.
• Directs the Office of Government Ethics (OGE) to issue guidance on implementation.

• Enhanced Transparency for SGE Positions (Section 3):
• Amends Title 5 of the U.S. Code to require public reporting of SGE positions in federal workforce data, excluding those in advisory roles, low-level duties, or student positions.
• Mandates that executive agencies make financial disclosure reports filed by SGEs publicly available online (using existing procedures), with exceptions for certain high-level or exempt filers and the same excluded categories as above.

• SGE Database (Section 4):
• Requires the Office of Personnel Management (OPM) Director, in coordination with OGE, to create and maintain a free, searchable online database of SGEs.
• Database includes each SGE's name, a running count of service days, and the reason for their SGE designation (rather than full-time employment).
• Excludes advisory committee members, low-level SGEs, and certain exempt individuals.

Significant Changes to Existing Law

• Introduces a new criminal prohibition (18 U.S.C. § 221) specifically targeting SGEs' involvement in high-value federal awards, expanding beyond general conflict-of-interest rules (e.g., 18 U.S.C. § 208) that apply to all federal employees but do not explicitly address SGEs' indirect benefits or large awards.
• Builds on existing transparency laws (e.g., 5 U.S.C. §§ 3330f and 13107) by mandating inclusion of SGEs in public workforce data and financial disclosures, which were previously not required for most SGEs.
• Adds a dedicated public database (amending 5 U.S.C. § 1103), creating a centralized resource not previously available for tracking SGE service.

Potential Impacts

• On Government Agencies: Executive branch agencies must revise procurement processes to screen awards for SGE conflicts, potentially slowing contracting for large projects. Increased reporting and database maintenance could add administrative burdens but improve oversight.
• On Citizens and Contractors: Greater transparency may build public trust by revealing potential insider dealings, while organizations and individuals linked to SGEs face restrictions on bidding for or receiving multimillion-dollar federal funds, possibly reducing opportunities for those with SGE ties.
• On International Relations: Minimal direct impact, though it could indirectly affect U.S. agencies involved in international grants or contracts by limiting SGE participation, potentially influencing foreign aid or partnerships if SGEs are experts in those areas.

Main Stakeholders Affected

• Special Government Employees (SGEs): Face new restrictions on personal or indirect financial gains from federal awards, with exceptions for lower-impact roles; must comply with heightened disclosure.
• Federal Agencies and Departments: Responsible for enforcing prohibitions, updating regulations, and publishing data, affecting hiring and contracting practices.
• Contractors and Organizations: Businesses, nonprofits, or individuals receiving large federal awards may be barred if connected to an SGE, impacting eligibility for over $1 million in annual funding.
• Public and Oversight Bodies: Taxpayers and watchdog groups gain access to more information via disclosures and the database, aiding monitoring of government ethics; OGE and OPM handle new guidance and database duties.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens federal ethics enforcement by treating SGE self-dealing as a criminal offense, aligning with broader anti-corruption statutes but potentially increasing litigation over "indirect" benefits or award valuations. The $1 million threshold provides a clear limit, reducing ambiguity.
• Constitutional: No major challenges anticipated, as it regulates public employees' conduct without infringing on free speech or due process; exceptions preserve access for advisory and entry-level roles.
• Political: Promotes bipartisan anti-corruption goals (introduced by a diverse group of representatives), but could spark debate over burdens on expert SGEs in fields like science or consulting, potentially affecting recruitment for temporary government roles.

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

Sponsor

Rep. Min, Dave [D-CA-47]

Cosponsors (7)

Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Ansari, Yassamin [D-AZ-3], Rep. Garcia, Robert [D-CA-42], Rep. Tlaib, Rashida [D-MI-12], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Carson, André [D-IN-7], Rep. Horsford, Steven [D-NV-4]

Recent Actions

• 2025-12-11: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-11: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-12-11: Introduced in House
• 2025-12-11: Introduced in House

Bill Versions

• Ban on Self-Interested Contracting Act — issued 2025-12-11 — PDF (6 pages)