[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