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[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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