Rep. Velázquez Introduces Protecting Small Business Competitions Act to Secure Federal Contracts
Protecting Small Business Competitions Act of 2026
The Protecting Small Business Competitions Act of 2026 is currently in the House Committee on Small Business. On May 19, 2026, the committee voted to move the bill forward with changes. It is now waiting for further action by the House of Representatives.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Small businesses that compete for federal contracts would gain permanent legal protection ensuring they get a fair shot at government work above the $250,000 threshold. The Rule of Two already exists as a regulation, but codifying it into law makes it much harder for any future administration to weaken or eliminate it, giving small contractors greater long-term certainty.
Placed on the Union Calendar, Calendar No. 624.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Small Business. H. Rept. 119-719.
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 0.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Small Business.
Despite fears the Trump administration would eliminate the 'Rule of Two,' the FAR Overhaul reinforced it as mandatory for general small business set-asides. However, it shifted socioeconomic programs (8(a), HUBZone, etc.) to discretionary status, using 'may' instead of 'shall' for set-asides.
Introduced by Rep. Nydia Velázquez, the Protecting Small Business Competitions Act of 2025 seeks to codify the 'Rule of Two' into the Small Business Act. This would turn a regulatory requirement into a statutory mandate, ensuring agencies reserve contracts for small firms when competition exists.
Analysis of the FAR Council's deliberate removal of non-statutory provisions highlights the importance of H.R. 2804. While the Rule of Two was retained in recent rewrites, its lack of a statutory anchor remains a concern for small business advocates seeking permanent protection from future shifts.
No votes recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Protecting Small Business Competitions Act of 2026
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