Ending Discrimination in Government Contracting Act
- Bill Number
- S. 4390
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-04-27: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2026-05-14T19:30:46Z
AI-Generated Summary
Purpose
The Ending Discrimination in Government Contracting Act (S. 4390) aims to eliminate federal government contracting preferences based on race, ethnicity, gender, or social/economic disadvantage. It removes set-asides (reserved contracts), goals, and reporting requirements for small businesses owned by socially/economically disadvantaged individuals (typically minority-owned) and women, while retaining programs for HUBZone (Historically Underutilized Business Zone) small businesses and service-disabled veteran-owned small businesses.
Key Provisions
- Amendments to Small Business Act (15 U.S.C. 631 et seq.):
- Repeals or strikes all references to preferences for disadvantaged individuals and women-owned businesses across loans, contracts, subcontracting goals, and reporting.
- Ends the 8(a) Business Development Program (sole-source contracts for disadvantaged firms).
- Retains HUBZone and service-disabled veteran preferences.
- Repeals and Amendments to Other Laws:
- Repeals Minority Business Development Act of 2021 and sections of American Rescue Plan Act, CARES Act, and others removing similar preferences.
- Adjusts Department of Transportation (DOT) airport grants: Lowers disadvantaged business goals from 10% to 5% and redefines them to exclude race/gender.
- New Prohibitions (Sections 4715 and 4663 of Titles 41 and 10 U.S.C.):
- Bans executive agencies from considering race, ethnicity, or sex in awarding contracts or grants.
- Prohibits requiring contractors to use such factors in subcontracts.
- Agency Actions:
- Agencies must propose rule changes within 60 days and finalize within 180 days.
- Issue new guidance removing race/gender references within 60 days.
Significant Changes to Existing Law
- Eliminates 8(a) and Women-Owned Small Business (WOSB) Programs: No more sole-source or set-aside contracts based on owner disadvantage or gender.
- Removes Contracting Goals: Ends mandates for agencies to award percentages (e.g., 5% for disadvantaged businesses) to specific groups.
- Simplifies Reporting: Stops tracking awards by race, ethnicity, gender, or disadvantage status.
- Preserves Some Programs: HUBZone (location-based for underserved areas) and veteran-owned preferences remain intact.
Potential Impacts
- Government Agencies: Small Business Administration (SBA), Department of Defense (DOD), DOT, and others face rulemaking burdens but simplified procurement without race/gender tracking.
- Citizens and Businesses: Levels playing field for all small businesses; disadvantaged/women-owned firms lose advantages, potentially reducing their federal contract share (historically ~10-15% via preferences).
- Economy: May increase competition, lower costs, but could reduce diversity in contractors.
- No Direct International Impact.
Main Stakeholders Affected
- Losing Preferences: Minority-owned (socially/economically disadvantaged) and women-owned small businesses.
- Gaining/Unaffected: HUBZone small businesses, service-disabled veteran-owned businesses, non-preferred small/large businesses.
- Agencies: SBA (major program cuts), DOD, DOT, executive agencies (compliance required).
- Taxpayers/Contractors: Broader competition in bidding.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns with Supreme Court rulings (e.g., against race-based affirmative action); invites lawsuits testing "color-blind" contracting.
- Constitutional: Promotes equal protection (14th Amendment) by banning race/ethnicity/sex classifications in government action.
- Political: Sparks debate on equity vs. merit; requires congressional override of executive preferences.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-27: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2026-04-27: Introduced in Senate
Bill Versions
- Ending Discrimination in Government Contracting Act — issued 2026-04-27 — PDF (31 pages)