Stop 8(a) Contracting Fraud Act

Last action on Dec 10, 2025Committee on Small Business and Entrepreneurship. Hearing...

Summary

The Stop 8(a) Contracting Fraud Act would temporarily halt the Small Business Administration from awarding sole-source contracts under its 8(a) Business Development Program. The 8(a) program is designed to help small businesses and disadvantaged entrepreneurs compete for federal contracts. The moratorium would remain in effect until the SBA completes a comprehensive audit of the program and submits findings to Congress. The bill allows for limited exceptions when national security is at stake, requiring special approval from the SBA Administrator.

The bill responds to recent fraud allegations in the 8(a) program. Investigations have uncovered cases where companies falsely claimed to be eligible small businesses or used pass-through arrangements where larger companies performed the actual work while small businesses received the contract benefits. These schemes have cost taxpayers millions of dollars. If enacted, this bill would not permanently eliminate the 8(a) program but would pause one of its most valuable tools—sole-source contracts that don't require competitive bidding—pending a thorough review of program integrity and oversight.

Lifecycle of the Bill

Committee on Small Business and Entrepreneurship. Hearings held.

Dec 10, 2025

HearingSenateMeeting

Dec 10, 2025 · 19:30

Hearings to examine running government like a small business, focusing on waste and fraud, including S.1199, to extend the statute of limitations for fraud under certain pandemic programs, S.3173, to prohibit the Small Business Administration from awarding sole source contracts until the Administration conducts a full audit of and submits to Congress a report on the business development program, S.1991, to amend chapter 33 of title 31, United States Code, to require adequate information regarding payments of Federal funds.

Committee

Senate Committee on Small Business and Entrepreneurship

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Summary

The Senate Committee on Small Business and Entrepreneurship held a hearing on December 10, 2025, to examine three bills aimed at reducing government waste and fraud. S.1199, the SBA Fraud Enforcement Extension Act, would extend the statute of limitations to 10 years for fraud prosecutions related to pandemic relief programs including the Paycheck Protection Program, Restaurant Revitalization Fund, and Economic Injury Disaster Loans. S.3173, the Stop 8(a) Contracting Fraud Act, would impose a moratorium on the Small Business Administration's sole-source contracts under its 8(a) Business Development Program until the agency completes a comprehensive audit and submits findings to Congress, with limited exceptions for national security. S.1991, the Delivering On Government Efficiency in Spending Act, would require federal agencies to report detailed information about each payment they authorize, including the payment's purpose and funding source, and to verify this information annually for inclusion in Treasury's disbursement system. The committee received testimony from four witnesses: Courtney LaFountain, Acting Director of Financial Markets and Community Investment at the Government Accountability Office; Luke Rosiak from The Daily Wire; Dylan Hedtler-Gaudette from the Project On Government Oversight; and John Hart from Open the Books. The hearing reflected broader concerns about fraud in federal programs and the need for greater oversight and transparency in government spending. The bills represent efforts to strengthen enforcement mechanisms and improve accountability in federal contracting and pandemic relief administration. A hearing does not guarantee that bills will advance to a vote or become law.

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Stop 8(a) Contracting Fraud Act

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Senate Committee on Small Business and Entrepreneurship

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