[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5366 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5366
To end preferences for disadvantaged individuals and businesses in
Government contracts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 21, 2024
Mr. Lee introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To end preferences for disadvantaged individuals and businesses in
Government contracts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ending Racism in Government
Contracting Act''.
SEC. 2. ENDING PREFERENCES FOR DISADVANTAGED INDIVIDUALS AND BUSINESSES
IN GOVERNMENT CONTRACTS.
(a) Small Business Act.--The Small Business Act (15 U.S.C. 631 et
seq.) is amended--
(1) in section 2 (15 U.S.C. 631)--
(A) by repealing subsection (f); and
(B) in subsection (h)(1)(H), by striking ``while
not adversely affecting the rights of socially and
economically disadvantaged individuals'';
(2) in section 7 (15 U.S.C. 636)--
(A) in subsection (a)--
(i) in paragraph (15)(E)--
(I) in clause (i), by striking
``including the number of loans'' and
all that follows through the end of the
clause and inserting the following:
``including the number of loans made to
cooperatives;''; and
(II) in clause (ii), by striking
``including the number of financings''
and all that follows through the end of
the clause and inserting the following:
``including the number of financings
made to cooperatives; and''; and
(ii) in paragraph (36)(P)(iv), by striking
``small business concerns owned and controlled
by socially and economically disadvantaged
individuals (as defined in section
8(d)(3)(C)),''; and
(B) in subsection (j)--
(i) in paragraph (11)(I)(iii), by striking
``and a distribution of concerns across all
industry'' and all that follows through ``has
been limited'' in the second sentence; and
(ii) in paragraph (16)(B)(iii), by striking
``owned and controlled by other than socially
and economically disadvantaged individuals'';
(3) in section 8 (15 U.S.C. 637)--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) by inserting ``and'' after the
semicolon at the end;
(II) by striking subparagraphs (B)
and (C); and
(III) by redesignating subparagraph
(D) as subparagraph (B);
(ii) by repealing paragraphs (4) through
(8);
(iii) in paragraph (9)(B)--
(I) by striking clause (i); and
(II) by redesignating clauses (ii),
(iii), and (iv) as clauses (i), (ii),
and (iii), respectively;
(iv) in paragraph (10), in the second
sentence, by striking ``and from small
disadvantaged business concerns in industry
categories that have not substantially
participated in the award of contracts let
under the authority of this subsection''; and
(v) in paragraph (12)--
(I) in subparagraph (A), by
striking ``and Disadvantaged'';
(II) in subparagraph (C), in the
first sentence, by striking ``,
including those owned and controlled by
socially and economically disadvantaged
individuals,''; and
(III) in subparagraph (D)(i), by
striking ``and Disadvantaged'';
(B) in subsection (d)--
(i) in paragraph (1), by striking ``small
business concerns owned and controlled by
socially and economically disadvantaged
individuals,'' each place that term appears;
(ii) in paragraph (3)--
(I) in subparagraph (A), by
striking ``small business concerns
owned and controlled by socially and
economically disadvantaged
individuals,'' each place that term
appears;
(II) by amending subparagraph (C)
to read as follows:
``(C) As used in this contract, the term `small
business concern' shall mean a small business as
defined pursuant to section 3 of the Small Business Act
and relevant regulations promulgated pursuant
thereto.''; and
(III) in subparagraph (F), by
striking ``a small business concern
owned and controlled by socially and
economically disadvantaged
individuals,'';
(iii) in paragraph (4)--
(I) in subparagraph (D), by
striking ``small business concerns
owned and controlled by socially and
economically disadvantaged
individuals,''; and
(II) in subparagraph (E), by
striking ``small business concerns
owned and controlled by the socially
and economically disadvantaged
individuals as defined in paragraph (3)
of this subsection and for'';
(iv) in paragraph (6), by striking ``small
business concerns owned and controlled by
socially and economically disadvantaged
individuals,'' each place that term appears;
(v) in paragraph (11)(B), by striking
``small business concerns owned and controlled
by socially and economically disadvantaged
individuals,''; and
(vi) in paragraph (13)(E)(i), by striking
``and Disadvantaged''; and
(C) in subsection (m), by striking paragraphs (7)
and (8);
(4) in section 9(j)(2)(F) (15 U.S.C. 638(j)(2)(F)), by
striking ``socially and economically disadvantaged small
business concerns, as defined in section 8(a)(4), and the
participation of'';
(5) in section 15 (15 U.S.C. 644)--
(A) in subsection (e)(1)(B), by striking ``and
Disadvantaged'';
(B) in subsection (g)--
(i) in paragraph (1)(A)--
(I) in the matter preceding clause
(i), by striking ``small business
concerns owned and controlled by
socially and economically disadvantaged
individuals,'';
(II) by striking clause (iv); and
(III) by redesignating clause (v)
as clause (iv); and
(ii) in paragraph (2)--
(I) in subparagraph (A), by
striking ``by small business concerns
owned and controlled by socially and
economically disadvantaged
individuals,'';
(II) in subparagraph (B), by
striking ``small business concerns
owned and controlled by socially and
economically disadvantaged
individuals,'';
(III) in subparagraph (D), by
striking ``small business concerns
owned and controlled by socially and
economically disadvantaged
individuals,''; and
(IV) in subparagraph (F)(ii), by
striking ``and Disadvantaged'';
(C) in subsection (h)(2)(E)--
(i) by striking clause (iv); and
(ii) by redesignating clauses (v) through
(viii) as clauses (iv) through (vii),
respectively;
(D) in subsection (k)--
(i) in the matter preceding paragraph (1),
by striking ``and Disadvantaged'';
(ii) in paragraph (1), by striking ``and
Disadvantaged''; and
(iii) in paragraph (2), by striking ``and
Disadvantaged'';
(E) in subsection (l)(2)(G), by striking ``and
Disadvantaged'';
(F) in subsection (s)(2)(A), by striking ``and
Disadvantaged''; and
(G) in subsection (y)--
(i) in paragraph (2), by striking ``small
business concerns owned and controlled by
socially and economically disadvantaged
individuals,'' each place that term appears;
(ii) in paragraph (3)(B), by striking
``small business concerns owned and controlled
by socially and economically disadvantaged
individuals,''; and
(iii) in paragraph (4), by striking
subparagraph (D);
(6) in section 16 (15 U.S.C. 645)--
(A) in subsection (d)(1), in the matter preceding
subparagraph (A), by striking ``a `small business
concern owned and controlled by socially and
economically disadvantaged individuals','';
(B) in subsection (e), by striking ``a `small
business concern owned and controlled by socially and
economically disadvantaged individuals',''; and
(C) in subsection (g)(2), by striking ``and
Disadvantaged'';
(7) in section 21(a)(5)(D) (15 U.S.C. 648(a)(5)(D)), by
striking ``small business, woman-owned business, or socially
and economically disadvantaged business'' and inserting ``small
business or woman-owned business'';
(8) in section 22(l) (15 U.S.C. 649(l))--
(A) in paragraph (1)--
(i) in subparagraph (C), by inserting
``and'' at the end;
(ii) by striking subparagraph (D); and
(iii) by redesignating subparagraph (E) as
subparagraph (D); and
(B) in paragraph (3)(B)(ii)--
(i) by striking subclause (I); and
(ii) by redesignating subclauses (II) and
(III) as subclauses (I) and (II), respectively;
and
(9) in section 45(c)(1)(B) (15 U.S.C. 657r(c)(1)(B))--
(A) in clause (iii), by inserting ``or'' after the
semicolon at the end;
(B) by striking clause (iv); and
(C) by redesignating clause (v) as clause (iv).
(b) Amendments to Other Acts.--
(1) American rescue plan act of 2021.--The American Rescue
Plan Act of 2021 (Public Law 117-2) is amended--
(A) in section 5003(c)(3)(A) (15 U.S.C.
9009c(c)(3)(A)), in the first sentence, by striking ``,
small business concerns owned and controlled by
veterans'' and all that follows through the period at
the end and inserting the following: ``or small
business concerns owned and controlled by veterans (as
defined in section 3(q) of that Act (15 U.S.C.
632(q))).''; and
(B) in section 5004(a) (15 U.S.C. 9013(a)), by
amending paragraph (5) to read as follows:
``(5) Eligible business.--The term `eligible business'
means any small business concern, with priority for small
business concerns owned and controlled by women (as defined in
section 3(n) of the Small Business Act (15 U.S.C. 632(n))) and
small business concerns owned and controlled by veterans (as
defined in section 3(q) of that Act (15 U.S.C. 632(q))).''.
(2) Consolidated appropriations act, 2005.--Section 155 of
subtitle E of title I of division K of the Consolidated
Appropriations Act, 2005 (15 U.S.C. 657g) is repealed.
(3) Federal acquisition streamlining act of 1994.--Section
7104 of the Federal Acquisition Streamlining Act of 1994 (15
U.S.C. 644a) is amended--
(A) in subsection (b)(3), by striking ``and
Disadvantaged''; and
(B) in subsection (c)(3), by striking ``and
Disadvantaged''.
(4) Minority business development act of 2021.--The
Minority Business Development Act of 2021 (15 U.S.C. 9521 et
seq.) is repealed.
(5) Small business economic policy act of 1980.--Section
303(e) of the Small Business Economic Policy Act of 1980 (15
U.S.C. 631b(e)) is amended--
(A) by striking paragraph (1); and
(B) by redesignating paragraph (2), the first
paragraph (3) (relating to qualified HUBZone small
business concerns), and the second paragraph (3)
(relating to small business concerns owned and
controlled by veterans) as paragraphs (1), (2), and
(3), respectively.
(6) Small business investment act of 1958.--Section
411(c)(3)(B) of the Small Business Investment Act of 1958 (15
U.S.C. 694b(c)(3)(B)) is amended by striking ``a small business
concern owned and controlled by socially and economically
disadvantaged individuals as defined by section 8(d) of the
Small Business Act, or to''.
(c) Technical and Conforming Amendments.--
(1) American recovery and reinvestment act of 2009.--
Section 6001(h) of the American Recovery and Reinvestment Act
of 2009 (47 U.S.C. 1305(h)) is amended--
(A) in paragraph (1), by inserting ``and'' after
the semicolon;
(B) in paragraph (2)(D), by striking ``; and'' and
inserting a period; and
(C) by striking paragraph (3).
(2) CARES act.--Title I of the CARES Act (15 U.S.C. 9001 et
seq.) is amended--
(A) in section 1107(a) (15 U.S.C. 9006(a)), by
repealing paragraph (5); and
(B) by repealing section 1108 (15 U.S.C. 9007).
(3) Energy policy act of 1992.--Section 3021 of the Energy
Policy Act of 1992 (42 U.S.C. 13556) is amended--
(A) in subsection (a)--
(i) by striking paragraph (1); and
(ii) by redesignating paragraphs (2), (3),
and (4) as paragraphs (1), (2), and (3),
respectively; and
(B) in subsection (b)--
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as
paragraph (2).
(4) Energy policy act of 2005.--Section 1003(a)(1) of the
Energy Policy Act of 2005 (42 U.S.C. 16393(a)(1)) is amended by
striking ``, including socially and economically disadvantaged
small business concerns (as defined in section 8(a)(4) of the
Small Business Act (15 U.S.C. 637(a)(4))),''.
(5) Export-import bank act of 1945.--The Export-Import Bank
Act of 1945 (12 U.S.C. 635 et seq.) is amended--
(A) in section 2(b)(1)(E)(iii)(II) (12 U.S.C.
635(b)(1)(E)(iii)(II)), by striking ``to socially and
economically disadvantaged small business concerns (as
defined in section 8(a)(4) of the Small Business Act),
small business concerns (as defined in section 3(a) of
the Small Business Act) owned by women, and'' and
inserting the following: ``to small business concerns
(as defined in section 3(a) of the Small Business Act
(15 U.S.C. 632(a))) owned by women and'';
(B) in section 3(i)(1) (12 U.S.C. 635a(i)(1)), by
striking ``socially and economically disadvantaged
small business concerns (as defined in section 8(a)(4)
of the Small Business Act) and''; and
(C) in section 8 (12 U.S.C. 635g)--
(i) in subsection (e), by striking
``socially and economically disadvantaged small
business concerns (as defined in section
8(a)(4) of the Small Business Act), small
business concerns (as defined in section 3(a)
of the Small Business Act) owned by women,
and'' and inserting ``small business concerns
small business concerns (as defined in section
3(a) of the Small Business Act (15 U.S.C.
632(a))) owned by women and''; and
(ii) in subsection (f)(4), by striking
``socially and economically disadvantaged small
business concerns (defined in section 8(a)(4)
of the Small Business Act) and''.
(6) Federal acquisition streamlining act of 1994.--Section
7104(c) of the Federal Acquisition Streamlining Act of 1994 (15
U.S.C. 644a(c)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph
(2).
(7) Small business act.--Section 7(j) of the Small Business
Act (15 U.S.C. 636(j)) is amended--
(A) in paragraph (10)(D)(i), by striking ``and
shall be designed to result in the Program Participant
eliminating the conditions or circumstances upon which
the Administration determined eligibility pursuant to
section 8(a)(6)''; and
(B) in paragraph (11)--
(i) by striking subparagraph (B);
(ii) by redesignating subparagraphs (C)
through (I) as subparagraphs (B) through (H),
respectively;
(iii) in subparagraph (C), as so
redesignated, by striking ``(as defined
pursuant to section 8(a)(4))''; and
(iv) in subparagraph (E), as so
redesignated--
(I) by striking clause (i); and
(II) by redesignating clauses (ii)
through (viii) as clauses (i) through
(vii), respectively.
(8) Small business jobs act of 2010.--Title III of the
Small Business Jobs Act of 2010 (12 U.S.C. 5701 et seq.) is
amended--
(A) in section 3002 (12 U.S.C. 5701)--
(i) by striking paragraph (18); and
(ii) by redesignating paragraph (19) as
paragraph (18);
(B) in section 3003 (12 U.S.C. 5702), by repealing
subsections (d) and (e); and
(C) in section 3009(e) (12 U.S.C. 5708(e))--
(i) in paragraph (1)--
(I) in the matter preceding
subparagraph (A), by striking
``business enterprises owned and
controlled by socially and economically
disadvantaged individuals, to very
small businesses and business
enterprises owned and controlled by
socially and economically disadvantaged
individuals'' and inserting ``very
small businesses''; and
(II) in subparagraph (B), by adding
``and'' after the semicolon at the end;
(ii) by striking paragraph (2);
(iii) by redesignating paragraph (3) as
paragraph (2); and
(iv) in paragraph (2), as so redesignated--
(I) by striking ``(with priority
given to business enterprises owned and
controlled by socially and economically
disadvantaged individuals),''; and
(II) by striking ``to provide
technical assistance to business
enterprises owned and controlled by
socially and economically disadvantaged
individuals'' and inserting ``to
provide technical assistance to
business enterprises''.
(9) Title 51, united states code.--Section 30304 of title
51, United States Code, is repealed.
SEC. 3. ENDING RACIAL AND ETHNIC PARTICIPATION GOALS FOR DEPARTMENT OF
TRANSPORTATION FINANCIAL ASSISTANCE PROGRAMS.
(a) Written Assurances for Airport Improvement Project Grants.--
Section 47107(e) of title 49, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking ``10 percent'' and inserting ``5
percent''; and
(B) by striking ``small business concerns'' and all
that follows through the period at the end and
inserting ``disadvantaged business concerns (as defined
in section 47113(a) of this title).'';
(2) in paragraph (4)(B), in the second sentence, by
striking ``small business concern'' and all that follows
through the period at the end and inserting ``disadvantaged
business concern (as defined in section 47113(a) of this
title).''; and
(3) in paragraph (6), by striking ``small business
concern'' and all that follows through ``Small Business Act)''
and inserting ``disadvantaged business concern (as defined in
section 47113(a) of this title)''.
(b) Disadvantaged Business Concern.--Section 47113 of title 49,
United States Code, is amended--
(1) in subsection (a)--
(A) by striking paragraph (2); and
(B) by inserting the following:
``(2) `disadvantaged business concern' and `disadvantaged
business enterprise' mean a concern owned and controlled by
women or a qualified HUBZone small business concern; and'';
(2) by striking subsection (b);
(3) in subsection (d), by striking ``small business
concerns referred to in subsection (b) of this section'' and
inserting ``disadvantaged business concerns''; and
(4) by striking subsection (e).
(c) Environmental Protection Agency.--The matter under the heading
``administrative provisions'' under the heading ``Environmental
Protection Agency'' under the heading ``INDEPENDENT AGENCIES'' in title
III of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1993, is
amended by striking the first paragraph (42 U.S.C. 4370d).
SEC. 4. ENDING RACIAL AND ETHNIC CONTRACTING GOALS IN OTHER GOVERNMENT
PROGRAMS.
(a) Elimination of Reporting on Small Business Concerns Owned and
Controlled by Socially and Economically Disadvantaged Individuals.--
Section 1713 of title 41, United States Code, is amended--
(1) in subsection (a)--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph
(2); and
(2) in the first sentence of subsection (b), by striking
``, the number of small businesses owned and controlled by
women, and the number'' and all that follows through the period
at the end and inserting ``and the number of small businesses
owned and controlled by women.''.
(b) Disadvantaged Business Enterprises.--
(1) In general.--Section 3021 of the Energy Policy Act of
1992 (42 U.S.C. 13556) is repealed.
(2) Clerical amendment.--The table of contents in section
1(b) of the Energy Policy Act of 1992 (Public Law 102-486; 106
Stat. 2782) is amended by striking the item relating to section
3021.
SEC. 5. ENDING ALL RACIAL AND ETHNIC DISCRIMINATION IN GOVERNMENT
CONTRACTING AND AWARDS.
(a) Civilian Contracts.--
(1) In general.--Chapter 47 of title 41, United States
Code, is amended by adding at the end the following new
section:
``Sec. 4715. Prohibition on racial and ethnic preferences in government
contracts and awards
``The head of an executive agency may not--
``(1) take into consideration the race or ethnicity of
individuals owning, controlling, or managing businesses or
other entities when granting contracts or awards; or
``(2) place requirements on contractors or grantees that
require or encourage them to take into consideration the race
or ethnicity of individuals to whom they award contracts,
subcontracts, or awards.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 47 of title 10, United States Code, is
amended by inserting after the item relating to section 4714
the following new item:
``4715. Prohibition on racial and ethnic preferences in government
contracts and awards.''.
(b) Defense Contracts.--
(1) In general.--Chapter 363 of title 10, United States
Code, is amended by adding at the end the following new
section:
``Sec. 4663. Prohibition on racial and ethnic preferences in defense
contracts and awards
``The head of an agency may not--
``(1) take into consideration the race or ethnicity of
individuals owning, controlling, or managing businesses or
other entities when granting contracts or awards; or
``(2) place requirements on contractors or grantees that
require or encourage them to take into consideration the race
or ethnicity of individuals to whom they award contracts,
subcontracts, or awards.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 363 of title 10, United States Code, is
amended by inserting after the item relating to section 4662
the following new item:
``4663. Prohibition on racial and ethnic preferences in defense
contracts and awards.''.
(c) Rulemaking.--Not later than 60 days after the date of the
enactment of this Act, the head of each executive agency that has rules
or regulations requiring or encouraging consideration of the racial or
ethnic status of individuals to whom they grant contracts or awards
shall submit a proposed rulemaking removing all such references. The
agency shall complete the rulemaking within 180 days after the date of
the enactment of this Act.
(d) Guidance.--Not later than 60 days after the date of the
enactment of this Act, the head of each executive agency that has
guidance documents, directives, or notices requiring or encouraging
consideration of the racial or ethnic status of individuals to whom
they grant contracts or awards shall submit new guidance, directives,
or notices removing all such references.
(e) Executive Agency Defined.--In this section, the term
``executive agency'' has the meaning given the term in section 133 of
title 41, United States Code.
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