Time to Choose Act of 2025
- Bill Number
- S. 731
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-02-25: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2026-04-23T19:22:06Z
AI-Generated Summary
Purpose of the Legislation
The "Time to Choose Act of 2025" aims to eliminate conflicts of interest in federal contracting by preventing consulting firms from simultaneously working for the U.S. government and certain foreign entities (such as China or Russia) that could threaten U.S. economic or national security. It requires these firms to choose between U.S. contracts and contracts with "covered foreign entities," thereby protecting U.S. interests from potential foreign influence.
Key Provisions
- Certification Requirement: The Federal Acquisition Regulation (FAR), which governs how the U.S. government buys goods and services, must be updated within one year to require any firm bidding on consulting contracts (including those in Industry Group code 5416, covering management, scientific, and technical consulting) to certify that neither the firm nor its subsidiaries/affiliates have consulting contracts with covered foreign entities.
- Prohibition on Awards: Federal contracts for consulting services cannot be awarded to firms that fail this certification or are found to provide services to covered foreign entities.
- Waiver Process: Agency heads can grant waivers on a case-by-case basis if it's deemed essential for national security, no conflict-free alternative exists, and strict reporting requirements are met (e.g., notifications to the Office of Management and Budget and Congress, public disclosure of foreign clients unless it harms security). Waivers are limited to 365 days (with one 180-day extension), and only one per firm across all agencies at a time. Contractors must report any risks, human rights violations, or security threats discovered during the contract.
- Penalties for Violations: Firms submitting false certifications face contract termination, suspension, or debarment (barring them from future federal contracts). They may also face penalties under the False Claims Act (a law that imposes fines for fraud against the government, including triple damages).
- Definitions:
- Covered Foreign Entities: Includes the Chinese government, Communist Party, military, or intelligence agencies; Russian government entities under specific sanctions; governments supporting terrorism (as determined by the State Department); entities on U.S. export control lists (e.g., Commerce Department's Entity List); and others identified by the Defense Department or Treasury.
- Consulting Services: Advisory or assistance services (similar to those in FAR 2.101), but excludes routine compliance work like audits or legal disputes.
- No Additional Funding: The law requires implementation without new budget allocations.
Significant Changes to Existing Law
- Introduces a new mandatory self-certification process in the FAR for consulting contracts, which did not previously exist specifically for conflicts with foreign entities.
- Adds a targeted prohibition on federal awards to firms with dual loyalties, expanding beyond general conflict-of-interest rules in the FAR (e.g., subpart 9.5) to focus on national security threats.
- Establishes a structured waiver mechanism with congressional oversight and public transparency requirements, which is more rigorous than current ad-hoc waivers.
- Enhances penalties by explicitly linking false certifications to the False Claims Act and debarment procedures, creating stronger deterrents than prior procurement ethics rules.
Potential Impacts
- On Government Agencies: Procurement processes may become more complex and time-consuming, potentially limiting the pool of available consulting firms and increasing costs for alternatives. However, it could improve security by reducing risks of sensitive information leaks. Agencies like the Department of Defense must consult with intelligence officials for waivers.
- On Citizens: Enhances protection of national and economic security by minimizing foreign influence in U.S. government advice, potentially safeguarding jobs, infrastructure, and defense strategies from adversarial actions.
- On International Relations: Could strain ties with covered countries (e.g., China, Russia) by restricting U.S. business engagements, signaling a tougher U.S. stance on foreign threats. It may encourage allies to adopt similar measures but could face criticism for economic protectionism.
Main Stakeholders Affected
- Consulting Firms: Large firms (e.g., those in management or technical consulting) with international clients must divest from covered foreign entities to retain U.S. contracts, potentially losing revenue or needing to restructure.
- U.S. Government Agencies: Executive agencies (e.g., Department of Defense, intelligence community) involved in contracting will handle certifications, waivers, and reporting, with oversight from the Office of Management and Budget.
- Covered Foreign Entities: Governments and companies in China, Russia, or sanctioned nations may lose access to U.S.-based consulting expertise, affecting their operations.
- Congressional Committees: The Senate Committee on Homeland Security and Governmental Affairs and House Committee on Oversight and Government Reform gain new notification and briefing roles for transparency.
- U.S. Taxpayers and Security Officials: Indirectly benefit from reduced conflict risks but may see higher contracting costs passed on through government budgets.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens federal procurement integrity by integrating national security into contracting rules, but could invite lawsuits from firms claiming unfair restrictions on commerce or due process violations in debarment processes. The False Claims Act integration amplifies civil liabilities for fraud.
- Constitutional: Aligns with Congress's authority over federal spending (Article I, Section 9) and the executive's national security powers, but waivers involving intelligence consultations raise potential separation-of-powers questions if judicial review is sought.
- Political: Addresses bipartisan concerns over foreign influence (introduced by Senators Hawley, Peters, and Scott), potentially advancing U.S. policy on countering China and Russia without new funding. It may polarize debates on balancing security with free-market principles, influencing future trade or sanctions legislation.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Sen. Peters, Gary C. [D-MI], Sen. Scott, Rick [R-FL], Sen. Hassan, Margaret Wood [D-NH], Sen. Sheehy, Tim [R-MT]
Recent Actions
- 2025-02-25: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2025-02-25: Introduced in Senate
Bill Versions
- Time to Choose Act of 2025 — issued 2025-02-25 — PDF (15 pages)