II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Ending Racism in Gov5 ernment Contracting Act’’. 

6 SEC. 2. ENDING PREFERENCES FOR DISADVANTAGED INDI7 VIDUALS AND BUSINESSES IN GOVERNMENT 

8 CONTRACTS. 

9 (a) SMALL BUSINESS ACT.—The Small Business Act 

10 (15 U.S.C. 631 et seq.) is amended— 


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1 (1) in section 2 (15 U.S.C. 631)— 

2 (A) by repealing subsection (f); and 

3 (B) in subsection (h)(1)(H), by striking 

4 ‘‘while not adversely affecting the rights of so5 cially and economically disadvantaged individ6 uals’’; 

7 (2) in section 7 (15 U.S.C. 636)— 

8 (A) in subsection (a)— 

9 (i) in paragraph (15)(E)— 

10 (I) in clause (i), by striking ‘‘in11 cluding the number of loans’’ and all 

12 that follows through the end of the 

13 clause and inserting the following: 

14 ‘‘including the number of loans made 

15 to cooperatives;’’; and 

16 (II) in clause (ii), by striking ‘‘in17 cluding the number of financings’’ 

18 and all that follows through the end 

19 of the clause and inserting the fol20 lowing: ‘‘including the number of 

21 financings made to cooperatives; 

22 and’’; and 

23 (ii) in paragraph (36)(P)(iv), by strik24 ing ‘‘small business concerns owned and 

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1 advantaged individuals (as defined in sec2 tion 8(d)(3)(C)),’’; and 

3 (B) in subsection (j)— 

4 (i) in paragraph (11)(I)(iii), by strik5 ing ‘‘and a distribution of concerns across 

6 all industry’’ and all that follows through 

7 ‘‘has been limited’’ in the second sentence; 

8 and 

9 (ii) in paragraph (16)(B)(iii), by 

10 striking ‘‘owned and controlled by other 

11 than socially and economically disadvan12 taged individuals’’; 

13 (3) in section 8 (15 U.S.C. 637)— 

14 (A) in subsection (a)— 

15 (i) in paragraph (1)— 

16 (I) by inserting ‘‘and’’ after the 

17 semicolon at the end; 

18 (II) by striking subparagraphs 

19 (B) and (C); and 

20 (III) by redesignating subpara21 graph (D) as subparagraph (B); 

22 (ii) by repealing paragraphs (4) 

23 through (8); 

24 (iii) in paragraph (9)(B)— 

25 (I) by striking clause (i); and 


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1 (II) by redesignating clauses (ii), 

2 (iii), and (iv) as clauses (i), (ii), and 

3 (iii), respectively; 

4 (iv) in paragraph (10), in the second 

5 sentence, by striking ‘‘and from small dis6 advantaged business concerns in industry 

7 categories that have not substantially par8 ticipated in the award of contracts let 

9 under the authority of this subsection’’; 

10 and 

11 (v) in paragraph (12)— 

12 (I) in subparagraph (A), by strik13 ing ‘‘and Disadvantaged’’; 

14 (II) in subparagraph (C), in the 

15 first sentence, by striking ‘‘, including 

16 those owned and controlled by socially 

17 and economically disadvantaged indi18 viduals,’’; and 

19 (III) in subparagraph (D)(i), by 

20 striking ‘‘and Disadvantaged’’; 

21 (B) in subsection (d)— 

22 (i) in paragraph (1), by striking 

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1 advantaged individuals,’’ each place that 

2 term appears; 

3 (ii) in paragraph (3)— 

4 (I) in subparagraph (A), by strik5 ing ‘‘small business concerns owned 

6 and controlled by socially and eco7 nomically disadvantaged individuals,’’ 

8 each place that term appears; 

9 (II) by amending subparagraph 

10 (C) to read as follows: 

11 ‘‘(C) As used in this contract, the term 

12 ‘small business concern’ shall mean a small 

13 business as defined pursuant to section 3 of the 

14 Small Business Act and relevant regulations 

15 promulgated pursuant thereto.’’; and 

16 (III) in subparagraph (F), by 

17 striking ‘‘a small business concern 

18 owned and controlled by socially and 

19 economically disadvantaged individ20 uals,’’; 

21 (iii) in paragraph (4)— 

22 (I) in subparagraph (D), by 

23 striking ‘‘small business concerns 

24 owned and controlled by socially and 


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1 economically disadvantaged individ2 uals,’’; and 

3 (II) in subparagraph (E), by 

4 striking ‘‘small business concerns 

5 owned and controlled by the socially 

6 and economically disadvantaged indi7 viduals as defined in paragraph (3) of 

8 this subsection and for’’; 

9 (iv) in paragraph (6), by striking 

10 ‘‘small business concerns owned and con11 trolled by socially and economically dis12 advantaged individuals,’’ each place that 

13 term appears; 

14 (v) in paragraph (11)(B), by striking 

15 ‘‘small business concerns owned and con16 trolled by socially and economically dis17 advantaged individuals,’’; and 

18 (vi) in paragraph (13)(E)(i), by strik19 ing ‘‘and Disadvantaged’’; and 

20 (C) in subsection (m), by striking para21 graphs (7) and (8); 

22 (4) in section 9(j)(2)(F) (15 U.S.C. 

23 638(j)(2)(F)), by striking ‘‘socially and economically 

24 disadvantaged small business concerns, as defined in 

25 section 8(a)(4), and the participation of’’; 


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1 (5) in section 15 (15 U.S.C. 644)— 

2 (A) in subsection (e)(1)(B), by striking 

3 ‘‘and Disadvantaged’’; 

4 (B) in subsection (g)— 

5 (i) in paragraph (1)(A)— 

6 (I) in the matter preceding clause 

7 (i), by striking ‘‘small business con8 cerns owned and controlled by socially 

9 and economically disadvantaged indi10 viduals,’’; 

11 (II) by striking clause (iv); and 

12 (III) by redesignating clause (v) 

13 as clause (iv); and 

14 (ii) in paragraph (2)— 

15 (I) in subparagraph (A), by strik16 ing ‘‘by small business concerns 

17 owned and controlled by socially and 

18 economically disadvantaged individ19 uals,’’; 

20 (II) in subparagraph (B), by 

21 striking ‘‘small business concerns 

22 owned and controlled by socially and 

23 economically disadvantaged individ24 uals,’’; 


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1 (III) in subparagraph (D), by 

2 striking ‘‘small business concerns 

3 owned and controlled by socially and 

4 economically disadvantaged individ5 uals,’’; and 

6 (IV) in subparagraph (F)(ii), by 

7 striking ‘‘and Disadvantaged’’; 

8 (C) in subsection (h)(2)(E)— 

9 (i) by striking clause (iv); and 

10 (ii) by redesignating clauses (v) 

11 through (viii) as clauses (iv) through (vii), 

12 respectively; 

13 (D) in subsection (k)— 

14 (i) in the matter preceding paragraph 

15 (1), by striking ‘‘and Disadvantaged’’; 

16 (ii) in paragraph (1), by striking ‘‘and 

17 Disadvantaged’’; and 

18 (iii) in paragraph (2), by striking 

19 ‘‘and Disadvantaged’’; 

20 (E) in subsection (l)(2)(G), by striking 

21 ‘‘and Disadvantaged’’; 

22 (F) in subsection (s)(2)(A), by striking 

23 ‘‘and Disadvantaged’’; and 

24 (G) in subsection (y)— 


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1 (i) in paragraph (2), by striking 

2 ‘‘small business concerns owned and con3 trolled by socially and economically dis4 advantaged individuals,’’ each place that 

5 term appears; 

6 (ii) in paragraph (3)(B), by striking 

7 ‘‘small business concerns owned and con8 trolled by socially and economically dis9 advantaged individuals,’’; and 

10 (iii) in paragraph (4), by striking sub11 paragraph (D); 

12 (6) in section 16 (15 U.S.C. 645)— 

13 (A) in subsection (d)(1), in the matter pre14 ceding subparagraph (A), by striking ‘‘a ‘small 

15 business concern owned and controlled by so16 cially and economically disadvantaged individ17 uals’,’’; 

18 (B) in subsection (e), by striking ‘‘a ‘small 

19 business concern owned and controlled by so20 cially and economically disadvantaged individ21 uals’,’’; and 

22 (C) in subsection (g)(2), by striking ‘‘and 

23 Disadvantaged’’; 

24 (7) in section 21(a)(5)(D) (15 U.S.C. 

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1 owned business, or socially and economically dis2 advantaged business’’ and inserting ‘‘small business 

3 or woman-owned business’’; 

4 (8) in section 22(l) (15 U.S.C. 649(l))— 

5 (A) in paragraph (1)— 

6 (i) in subparagraph (C), by inserting 

7 ‘‘and’’ at the end; 

8 (ii) by striking subparagraph (D); and 

9 (iii) by redesignating subparagraph 

10 (E) as subparagraph (D); and 

11 (B) in paragraph (3)(B)(ii)— 

12 (i) by striking subclause (I); and 

13 (ii) by redesignating subclauses (II) 

14 and (III) as subclauses (I) and (II), re15 spectively; and 

16 (9) in section 45(c)(1)(B) (15 U.S.C. 

17 657r(c)(1)(B))— 

18 (A) in clause (iii), by inserting ‘‘or’’ after 

19 the semicolon at the end; 

20 (B) by striking clause (iv); and 

21 (C) by redesignating clause (v) as clause 

22 (iv). 

23 (b) AMENDMENTS TO OTHER ACTS.— 


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1 (1) AMERICAN RESCUE PLAN ACT OF 2021.— 

2 The American Rescue Plan Act of 2021 (Public Law 

3 117–2) is amended— 

4 (A) in section 5003(c)(3)(A) (15 U.S.C. 

5 9009c(c)(3)(A)), in the first sentence, by strik6 ing ‘‘, small business concerns owned and con7 trolled by veterans’’ and all that follows through 

8 the period at the end and inserting the fol9 lowing: ‘‘or small business concerns owned and 

10 controlled by veterans (as defined in section 

11 3(q) of that Act (15 U.S.C. 632(q))).’’; and 

12 (B) in section 5004(a) (15 U.S.C. 

13 9013(a)), by amending paragraph (5) to read 

14 as follows: 

15 ‘‘(5) ELIGIBLE BUSINESS.—The term ‘eligible 

16 business’ means any small business concern, with 

17 priority for small business concerns owned and con18 trolled by women (as defined in section 3(n) of the 

19 Small Business Act (15 U.S.C. 632(n))) and small 

20 business concerns owned and controlled by veterans 

21 (as defined in section 3(q) of that Act (15 U.S.C. 

22 632(q))).’’. 

23 (2) CONSOLIDATED APPROPRIATIONS ACT, 

24 2005.—Section 155 of subtitle E of title I of division 


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1 K of the Consolidated Appropriations Act, 2005 (15 

2 U.S.C. 657g) is repealed. 

3 (3) FEDERAL ACQUISITION STREAMLINING ACT

4 OF 1994.—Section 7104 of the Federal Acquisition 

5 Streamlining Act of 1994 (15 U.S.C. 644a) is 

6 amended— 

7 (A) in subsection (b)(3), by striking ‘‘and 

8 Disadvantaged’’; and 

9 (B) in subsection (c)(3), by striking ‘‘and 

10 Disadvantaged’’. 

11 (4) MINORITY BUSINESS DEVELOPMENT ACT OF

12 2021.—The Minority Business Development Act of 

13 2021 (15 U.S.C. 9521 et seq.) is repealed. 

14 (5) SMALL BUSINESS ECONOMIC POLICY ACT OF

15 1980.—Section 303(e) of the Small Business Eco16 nomic Policy Act of 1980 (15 U.S.C. 631b(e)) is 

17 amended— 

18 (A) by striking paragraph (1); and 

19 (B) by redesignating paragraph (2), the 

20 first paragraph (3) (relating to qualified 

21 HUBZone small business concerns), and the 

22 second paragraph (3) (relating to small busi23 ness concerns owned and controlled by vet24 erans) as paragraphs (1), (2), and (3), respec25 tively. 


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1 (6) SMALL BUSINESS INVESTMENT ACT OF

2 1958.—Section 411(c)(3)(B) of the Small Business 

3 Investment Act of 1958 (15 U.S.C. 694b(c)(3)(B)) 

4 is amended by striking ‘‘a small business concern 

5 owned and controlled by socially and economically 

6 disadvantaged individuals as defined by section 8(d) 

7 of the Small Business Act, or to’’. 

8 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

9 (1) AMERICAN RECOVERY AND REINVESTMENT

10 ACT OF 2009.—Section 6001(h) of the American Re11 covery and Reinvestment Act of 2009 (47 U.S.C. 

12 1305(h)) is amended— 

13 (A) in paragraph (1), by inserting ‘‘and’’ 

14 after the semicolon; 

15 (B) in paragraph (2)(D), by striking ‘‘; 

16 and’’ and inserting a period; and 

17 (C) by striking paragraph (3). 

18 (2) CARES ACT.—Title I of the CARES Act 

19 (15 U.S.C. 9001 et seq.) is amended— 

20 (A) in section 1107(a) (15 U.S.C. 

21 9006(a)), by repealing paragraph (5); and 

22 (B) by repealing section 1108 (15 U.S.C. 

23 9007). 


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1 (3) ENERGY POLICY ACT OF 1992.—Section 

2 3021 of the Energy Policy Act of 1992 (42 U.S.C. 

3 13556) is amended— 

4 (A) in subsection (a)— 

5 (i) by striking paragraph (1); and 

6 (ii) by redesignating paragraphs (2), 

7 (3), and (4) as paragraphs (1), (2), and 

8 (3), respectively; and 

9 (B) in subsection (b)— 

10 (i) by striking paragraph (2); and 

11 (ii) by redesignating paragraph (3) as 

12 paragraph (2). 

13 (4) ENERGY POLICY ACT OF 2005.—Section 

14 1003(a)(1) of the Energy Policy Act of 2005 (42 

15 U.S.C. 16393(a)(1)) is amended by striking ‘‘, in16 cluding socially and economically disadvantaged 

17 small business concerns (as defined in section 

18 8(a)(4) of the Small Business Act (15 U.S.C. 

19 637(a)(4))),’’. 

20 (5) EXPORT-IMPORT BANK ACT OF 1945.—The 

21 Export-Import Bank Act of 1945 (12 U.S.C. 635 et 

22 seq.) is amended— 

23 (A) in section 2(b)(1)(E)(iii)(II) (12 

24 U.S.C. 635(b)(1)(E)(iii)(II)), by striking ‘‘to 

25 socially and economically disadvantaged small 


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1 business concerns (as defined in section 8(a)(4) 

2 of the Small Business Act), small business con3 cerns (as defined in section 3(a) of the Small 

4 Business Act) owned by women, and’’ and in5 serting the following: ‘‘to small business con6 cerns (as defined in section 3(a) of the Small 

7 Business Act (15 U.S.C. 632(a))) owned by 

8 women and’’; 

9 (B) in section 3(i)(1) (12 U.S.C. 

10 635a(i)(1)), by striking ‘‘socially and economi11 cally disadvantaged small business concerns (as 

12 defined in section 8(a)(4) of the Small Business 

13 Act) and’’; and 

14 (C) in section 8 (12 U.S.C. 635g)— 

15 (i) in subsection (e), by striking ‘‘so16 cially and economically disadvantaged 

17 small business concerns (as defined in sec18 tion 8(a)(4) of the Small Business Act), 

19 small business concerns (as defined in sec20 tion 3(a) of the Small Business Act) owned 

21 by women, and’’ and inserting ‘‘small busi22 ness concerns small business concerns (as 

23 defined in section 3(a) of the Small Busi24 ness Act (15 U.S.C. 632(a))) owned by 

25 women and’’; and 


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1 (ii) in subsection (f)(4), by striking 

2 ‘‘socially and economically disadvantaged 

3 small business concerns (defined in section 

4 8(a)(4) of the Small Business Act) and’’. 

5 (6) FEDERAL ACQUISITION STREAMLINING ACT

6 OF 1994.—Section 7104(c) of the Federal Acquisition 

7 Streamlining Act of 1994 (15 U.S.C. 644a(c)) is 

8 amended— 

9 (A) by striking paragraph (2); and 

10 (B) by redesignating paragraph (3) as 

11 paragraph (2). 

12 (7) SMALL BUSINESS ACT.—Section 7(j) of the 

13 Small Business Act (15 U.S.C. 636(j)) is amend14 ed— 

15 (A) in paragraph (10)(D)(i), by striking 

16 ‘‘and shall be designed to result in the Program 

17 Participant eliminating the conditions or cir18 cumstances upon which the Administration de19 termined eligibility pursuant to section 

20 8(a)(6)’’; and 

21 (B) in paragraph (11)— 

22 (i) by striking subparagraph (B); 

23 (ii) by redesignating subparagraphs 

24 (C) through (I) as subparagraphs (B) 

25 through (H), respectively; 


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1 (iii) in subparagraph (C), as so redes2 ignated, by striking ‘‘(as defined pursuant 

3 to section 8(a)(4))’’; and 

4 (iv) in subparagraph (E), as so redes5 ignated— 

6 (I) by striking clause (i); and 

7 (II) by redesignating clauses (ii) 

8 through (viii) as clauses (i) through 

9 (vii), respectively. 

10 (8) SMALL BUSINESS JOBS ACT OF 2010.—Title 

11 III of the Small Business Jobs Act of 2010 (12 

12 U.S.C. 5701 et seq.) is amended— 

13 (A) in section 3002 (12 U.S.C. 5701)— 

14 (i) by striking paragraph (18); and 

15 (ii) by redesignating paragraph (19) 

16 as paragraph (18); 

17 (B) in section 3003 (12 U.S.C. 5702), by 

18 repealing subsections (d) and (e); and 

19 (C) in section 3009(e) (12 U.S.C. 

20 5708(e))— 

21 (i) in paragraph (1)— 

22 (I) in the matter preceding sub23 paragraph (A), by striking ‘‘business 

24 enterprises owned and controlled by 

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1 taged individuals, to very small busi2 nesses and business enterprises owned 

3 and controlled by socially and eco4 nomically disadvantaged individuals’’ 

5 and inserting ‘‘very small businesses’’; 

6 and 

7 (II) in subparagraph (B), by add8 ing ‘‘and’’ after the semicolon at the 

9 end; 

10 (ii) by striking paragraph (2); 

11 (iii) by redesignating paragraph (3) as 

12 paragraph (2); and 

13 (iv) in paragraph (2), as so redesig14 nated— 

15 (I) by striking ‘‘(with priority 

16 given to business enterprises owned 

17 and controlled by socially and eco18 nomically disadvantaged individ19 uals),’’; and 

20 (II) by striking ‘‘to provide tech21 nical assistance to business enter22 prises owned and controlled by so23 cially and economically disadvantaged 

24 individuals’’ and inserting ‘‘to provide 


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1 technical assistance to business enter2 prises’’. 

3 (9) TITLE 51, UNITED STATES CODE.—Section 

4 30304 of title 51, United States Code, is repealed. 

5 SEC. 3. ENDING RACIAL AND ETHNIC PARTICIPATION 

6 GOALS FOR DEPARTMENT OF TRANSPOR7 TATION FINANCIAL ASSISTANCE PROGRAMS. 

8 (a) WRITTEN ASSURANCES FOR AIRPORT IMPROVE9 MENT PROJECT GRANTS.—Section 47107(e) of title 49, 

10 United States Code, is amended— 

11 (1) in paragraph (1)— 

12 (A) by striking ‘‘10 percent’’ and inserting 

13 ‘‘5 percent’’; and 

14 (B) by striking ‘‘small business concerns’’ 

15 and all that follows through the period at the 

16 end and inserting ‘‘disadvantaged business con17 cerns (as defined in section 47113(a) of this 

18 title).’’; 

19 (2) in paragraph (4)(B), in the second sentence, 

20 by striking ‘‘small business concern’’ and all that 

21 follows through the period at the end and inserting 

22 ‘‘disadvantaged business concern (as defined in sec23 tion 47113(a) of this title).’’; and 

24 (3) in paragraph (6), by striking ‘‘small busi25 ness concern’’ and all that follows through ‘‘Small 


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1 Business Act)’’ and inserting ‘‘disadvantaged busi2 ness concern (as defined in section 47113(a) of this 

3 title)’’. 

4 (b) DISADVANTAGED BUSINESS CONCERN.—Section 

5 47113 of title 49, United States Code, is amended— 

6 (1) in subsection (a)— 

7 (A) by striking paragraph (2); and 

8 (B) by inserting the following: 

9 ‘‘(2) ‘disadvantaged business concern’ and ‘dis10 advantaged business enterprise’ mean a concern 

11 owned and controlled by women or a qualified 

12 HUBZone small business concern; and’’; 

13 (2) by striking subsection (b); 

14 (3) in subsection (d), by striking ‘‘small busi15 ness concerns referred to in subsection (b) of this 

16 section’’ and inserting ‘‘disadvantaged business con17 cerns’’; and 

18 (4) by striking subsection (e). 

19 (c) ENVIRONMENTAL PROTECTION AGENCY.—The 

20 matter under the heading ‘‘ADMINISTRATIVE PROVISIONS’’ 

21 under the heading ‘‘ENVIRONMENTAL PROTECTION AGEN22 CY’’ under the heading ‘‘INDEPENDENT AGENCIES’’ 

23 in title III of the Departments of Veterans Affairs and 

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1 cies Appropriations Act, 1993, is amended by striking the 

2 first paragraph (42 U.S.C. 4370d). 

3 SEC. 4. ENDING RACIAL AND ETHNIC CONTRACTING GOALS 

4 IN OTHER GOVERNMENT PROGRAMS. 

5 (a) ELIMINATION OF REPORTING ON SMALL BUSI6 NESS CONCERNS OWNED AND CONTROLLED BY SOCIALLY

7 AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.— 

8 Section 1713 of title 41, United States Code, is amend9 ed— 

10 (1) in subsection (a)— 

11 (A) by striking paragraph (2); and 

12 (B) by redesignating paragraph (3) as 

13 paragraph (2); and 

14 (2) in the first sentence of subsection (b), by 

15 striking ‘‘, the number of small businesses owned 

16 and controlled by women, and the number’’ and all 

17 that follows through the period at the end and in18 serting ‘‘and the number of small businesses owned 

19 and controlled by women.’’. 

20 (b) DISADVANTAGED BUSINESS ENTERPRISES.— 

21 (1) IN GENERAL.—Section 3021 of the Energy 

22 Policy Act of 1992 (42 U.S.C. 13556) is repealed. 

23 (2) CLERICAL AMENDMENT.—The table of con24 tents in section 1(b) of the Energy Policy Act of 

25 1992 (Public Law 102–486; 106 Stat. 2782) is 


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1 amended by striking the item relating to section 

2 3021. 

3 SEC. 5. ENDING ALL RACIAL AND ETHNIC DISCRIMINATION 

4 IN GOVERNMENT CONTRACTING AND 

5 AWARDS. 

6 (a) CIVILIAN CONTRACTS.— 

7 (1) IN GENERAL.—Chapter 47 of title 41, 

8 United States Code, is amended by adding at the 

9 end the following new section: 

10 ‘‘§ 4715. Prohibition on racial and ethnic preferences 

11 in government contracts and awards 

12 ‘‘The head of an executive agency may not— 

13 ‘‘(1) take into consideration the race or eth14 nicity of individuals owning, controlling, or man15 aging businesses or other entities when granting 

16 contracts or awards; or 

17 ‘‘(2) place requirements on contractors or 

18 grantees that require or encourage them to take into 

19 consideration the race or ethnicity of individuals to 

20 whom they award contracts, subcontracts, or 

21 awards.’’. 

22 (2) CLERICAL AMENDMENT.—The table of sec23 tions at the beginning of chapter 47 of title 10, 

24 United States Code, is amended by inserting after 


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1 the item relating to section 4714 the following new 

2 item: 

‘‘4715. Prohibition on racial and ethnic preferences in government contracts and 

awards.’’. 

3 (b) DEFENSE CONTRACTS.— 

4 (1) IN GENERAL.—Chapter 363 of title 10, 

5 United States Code, is amended by adding at the 

6 end the following new section: 

7 ‘‘§ 4663. Prohibition on racial and ethnic preferences 

8 in defense contracts and awards 

9 ‘‘The head of an agency may not— 

10 ‘‘(1) take into consideration the race or eth11 nicity of individuals owning, controlling, or man12 aging businesses or other entities when granting 

13 contracts or awards; or 

14 ‘‘(2) place requirements on contractors or 

15 grantees that require or encourage them to take into 

16 consideration the race or ethnicity of individuals to 

17 whom they award contracts, subcontracts, or 

18 awards.’’. 

19 (2) CLERICAL AMENDMENT.—The table of sec20 tions at the beginning of chapter 363 of title 10, 

21 United States Code, is amended by inserting after 

22 the item relating to section 4662 the following new 

23 item: 

‘‘4663. Prohibition on racial and ethnic preferences in defense contracts and 

awards.’’. 


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1 (c) RULEMAKING.—Not later than 60 days after the 

2 date of the enactment of this Act, the head of each execu3 tive agency that has rules or regulations requiring or en4 couraging consideration of the racial or ethnic status of 

5 individuals to whom they grant contracts or awards shall 

6 submit a proposed rulemaking removing all such ref7 erences. The agency shall complete the rulemaking within 

8 180 days after the date of the enactment of this Act. 

9 (d) GUIDANCE.—Not later than 60 days after the 

10 date of the enactment of this Act, the head of each execu11 tive agency that has guidance documents, directives, or no12 tices requiring or encouraging consideration of the racial 

13 or ethnic status of individuals to whom they grant con14 tracts or awards shall submit new guidance, directives, or 

15 notices removing all such references. 

16 (e) EXECUTIVE AGENCY DEFINED.—In this section, 

17 the term ‘‘executive agency’’ has the meaning given the 

18 term in section 133 of title 41, United States Code. 

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