Introduced in Senate — S. 4390

119th CONGRESS

2d Session

S. 4390

IN THE SENATE OF THE UNITED STATES

April 27, 2026

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 Discrimination in Government Contracting Act.

Sec. 2. Ending Federal contracting preferences for small businesses owned and controlled by socially and economically disadvantaged individuals and small businesses owned and controlled by women

(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)

in subparagraph (A), 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 qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women each place that term appears and inserting and qualified HUBZone small business concerns;

(ii)

in paragraph (3)—

(I)

in subparagraph (A), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women each place that term appears and inserting and qualified HUBZone small business concerns;

(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 small business concern owned and controlled by service-disabled veterans, a small business concern owned and controlled by socially and economically disadvantaged individuals, or a small business concern owned and controlled by women and inserting or a small business concern owned and controlled by service-disabled veterans;

(iii)

in paragraph (4)—

(I)

in subparagraph (D), by striking small business concerns owned and controlled by service-disabled veterans, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and small business concerns owned and controlled by service-disabled veterans; and

(II)

in subparagraph (E), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by the socially and economically disadvantaged individuals as defined in paragraph (3) of this subsection and for small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns;

(iv)

in paragraph (6), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women each place that term appears and inserting and qualified HUBZone small business concerns;

(v)

in paragraph (11)(B), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns; and

(vi)

in paragraph (13)(E)(i), by striking and Disadvantaged;

(C)

by striking subsection (m); and

(D)

by redesignating subsection (n) as subsection (m);

(4)

in section 9 (15 U.S.C. 638)—

(A)

in subsection (b)(7), by repealing subparagraph (C); and

(B)

in subsection (j)(2), by repealing subparagraph (F);

(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 qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns; and

(II)

by striking clauses (iv) and (v);

(ii)

in paragraph (2)—

(I)

in subparagraph (A), by striking by qualified HUBZone small business concerns, by small business concerns owned and controlled by socially and economically disadvantaged individuals, and by small business concerns owned and controlled by women and inserting and by qualified HUBZone small business concerns;

(II)

in subparagraph (B), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns;

(III)

in subparagraph (D), by striking , qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns; and

(IV)

in subparagraph (F)(ii), by striking and Disadvantaged; and

(iii)

in paragraph (3), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns;

(C)

in subsection (h)—

(i)

in paragraph (1)(A), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns;

(ii)

in paragraph (2)—

(I)

in subparagraph (E)—

(aa)

in clause (i)(VI), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals, small business concerns owned and controlled by women,;

(bb)

in clause (ii)(VII), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals, small business concerns owned and controlled by women,;

(cc)

in clause (iii)(VIII), by striking small business concerns owned and controlled by socially and economically disadvantaged individuals, small business concerns owned and controlled by women,;

(dd)

by striking clause (iv);

(ee)

by redesignating clauses (v), (vi), and (vii) as clauses (iv), (v), and (vi), respectively;

(ff)

in clause (iv), as so redesignated—

(AA)

by striking subclause (IV); and

(BB)

by redesignating subclauses (V) and (VI) as subclauses (IV) and (V), respectively;

(gg)

in clause (v), as so redesignated—

(AA)

by striking subclause (IV); and

(BB)

by redesignating subclauses (V) and (VI) as subclauses (IV) and (V), respectively;

(hh)

in clause (vi), as so redesignated—

(AA)

by striking subclause (IV); and

(BB)

by redesignating subclauses (V) and (VI) as subclauses (IV) and (V), respectively; and

(ii)

by striking clause (viii); and

(II)

in subparagraph (F), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns; and

(iii)

in paragraph (4)(A)(ii)—

(I)

in subclause (I), by adding and at the end;

(II)

by striking subclause (II);

(III)

by redesignating subclause (III) as subclause (II);

(IV)

in subclause (II), as so redesignated, by striking ; and and inserting a period; and

(V)

by striking subclause (IV);

(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 (1), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns;

(ii)

in paragraph (2), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women each place that term appears and inserting and qualified HUBZone small business concerns;

(iii)

in paragraph (3)(B), by striking qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women and inserting and qualified HUBZone small business concerns; and

(iv)

in paragraph (4)—

(I)

by striking subparagraphs (A) and (D); and

(II)

by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively;

(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 veterans, a small business concern owned and controlled by socially and economically disadvantaged individuals, or a small business concern owned and controlled by women and inserting or a small business concern owned and controlled by veterans;

(B)

in subsection (e), by striking a small business concern owned and controlled by veterans, a small business concern owned and controlled by socially and economically disadvantaged individuals, or a small business concern owned and controlled by women and inserting or a small business concern owned and controlled by veterans; 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;

(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 women 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 veterans, as defined in section 3(q) of the Small Business 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 paragraphs (1) and (2); and

(B)

by redesignating 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) and (2), 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 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;

(B)

in section 3 (12 U.S.C. 635a(i)), by repealing subsection (i); 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

(ii)

in subsection (f)—

(I)

by striking paragraph (4); and

(II)

by redesignating paragraphs (5) through (8) as paragraphs (4) through (7), respectively.

(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

The Small Business Act (15 U.S.C. 631 et seq.) is amended—

(A)

in section 7(j) (15 U.S.C. 636(j))—

(i)

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

(ii)

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—

(aa)

by striking clause (i); and

(bb)

by redesignating clauses (ii) through (viii) as clauses (i) through (vii), respectively; and

(B)

in section 46(e) (15 U.S.C. 657s(e))—

(i)

in paragraph (1)—

(I)

by striking subparagraph (B); and

(II)

by redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D); and

(ii)

in paragraph (2)—

(I)

by striking subparagraphs (C) and (D); and

(II)

by redesignating subparagraphs (E) and (F) as subparagraphs (C) and (D), 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 certain 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 (as defined by regulations of the Secretary) owned and controlled by a socially and economically disadvantaged individual (as defined in section 47113(a) of this title) or;

(2)

in paragraph (4)(B), in the second sentence, by striking small business concern owned and controlled by a socially and economically disadvantaged individual or as a; and

(3)

in paragraph (6), by striking small business concern owned and controlled by a socially and economically disadvantaged individual or a.

(b) Disadvantaged business concern

Section 47113 of title 49, United States Code, is amended—

(1)

in the section heading, by striking Minority and disadvantaged business and inserting Small business concern and qualified HUBZone small business concern;

(2)

in subsection (a)—

(A)

by striking paragraph (2); and

(B)

by redesignating paragraph (3) as paragraph (2);

(3)

by striking subsections (b) and (e);

(4)

by redesignating subsections (c), (d), and (f) as subsections (b), (c), and (d), respectively;

(5)

in subsection (c) (as redesignated by paragraph (3)), by striking small business concerns referred to in subsection (b) of this section and inserting qualified HUBZone small business concerns; and

(6)

in subsection (d)(1) (as redesignated by paragraph (3)), by striking small business concerns referred to in subsection (b) and inserting qualified HUBZone small business concerns.

(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, ethnic, and gender-based 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)

by amending subsection (a) to read as follows:

(a) Qualified HUBZone small business concern defined
In this section, the term qualified HUBZone small business concern has the meaning given that term in section 31(b) of the Small Business Act (15 U.S.C. 657a(b)).; and

(2)

in the first sentence of subsection (b), by striking , the number of small businesses owned and controlled by women, and the number of small business concerns owned by socially and economically disadvantaged individuals, by gender,.

(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, ethnic, and sex-based 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:

4715. Prohibition on racial, ethnic, and sex-based preferences in government contracts and awards
The head of an executive agency may not—
(1)
take into consideration the race, ethnicity, or sex 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, ethnicity, or sex 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, ethnic, and sex-based 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:

4663. Prohibition on racial, ethnic, and sex-based preferences in defense contracts and awards
The head of an agency may not—
(1)
take into consideration the race, ethnicity, or sex 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, ethnicity, or sex 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 racial, ethnic, and sex-based 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 or sex 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 or sex 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.