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Congress·Passed House·3 months ago

Congress Proposes Ending Degree Requirements for Federal Contractors to Boost Skills-Based Hiring

Also known as: Skills-Based Federal Contracting Act of 2025

Legislative Progress

✓ Filed
✓ Review
✓ House
Senate
President

Impacts

Mixed Impacts(1)
Student
Neutral

People without degrees gain new opportunities, but the value of a college degree for landing federal contract work may decrease.

Positive Impacts(3)
Military Veteran
Helps

Veterans with hands-on military training but no college degree would have better access to federal contract jobs that match their skills.

Small Business Owner
Helps

Small businesses bidding on federal contracts could draw from a wider talent pool without being blocked by degree requirements.

Criminal Record
Helps

People with records who built skills through alternative paths but lack degrees face fewer barriers to federal contract employment.

Key Points

  • This bill stops government agencies from requiring college degrees for people working on federal contracts. Instead of looking at a diploma, agencies would focus on whether a person has the actual skills and experience to do the job.
  • This change affects millions of workers employed by private companies that do business with the government. It is designed to help people who have technical skills, military experience, or on-the-job training but might not have a four-year college degree.
  • The goal is to open up more job opportunities and help the government find talented workers. Many skilled people are currently blocked from these jobs just because they do not have a specific degree, even if they are highly qualified for the work.
  • Agencies can still require a degree if they can prove it is absolutely necessary. A hiring official would have to write a formal explanation showing why the job cannot be done without that specific education.
  • If passed, these new rules would start about 15 months later. The government would also be required to create a guide to help managers switch to looking at skills instead of degrees when hiring for projects.
Labor EmploymentEconomyEducation

Milestones

4 milestones12 actions
Feb 24, 2026Senate

Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Feb 23, 2026House

Motion to reconsider laid on the table Agreed to without objection.

Feb 23, 2026House

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2247)

Feb 23, 2026

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.

Feb 23, 2026House

DEBATE - The House proceeded with forty minutes of debate on H.R. 5235.

What Happens Next

Projected impacts based on AI analysis

OMB issues guidance to agencies on how to implement skills-based hiring for federal contracts

Agencies get official instructions on how to evaluate skills instead of degrees, setting the groundwork for the new rules.

New rules take effect for all federal contract solicitations

Starting about 15 months after the bill becomes law, agencies can no longer require degrees in contract job listings unless they write a formal justification.

GAO reports to Congress on how well agencies are following the new rules

Three years after enactment, an independent review will show whether agencies actually stopped requiring unnecessary degrees.

Related News

6 articles
Government Executive·almost 2 years ago

Skills-based hiring for contractors advances in the House

The House Oversight and Accountability Committee advanced the ACCESS Act, a bipartisan bill to remove degree requirements from federal contract work. The legislation requires agencies to provide a written justification if they determine a four-year degree is necessary for a specific contract.

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Nextgov/FCW·over 1 year ago

Major federal IT contracts to remove 'unnecessary' degree requirements

The GSA is removing degree requirements for IT and cybersecurity jobs within major contract vehicles like Alliant 3 and Polaris. This shift toward skills-based hiring aims to open pathways for skilled workers who acquired their expertise through alternative routes like apprenticeships.

C+
Federal News Network·5 months ago

Shutdown news for federal contractors: A new bill and a new rule

Legislative efforts like the Skills-Based Federal Contracting Act are gaining traction as the government seeks to modernize its workforce. The policy aims to ensure contractors are evaluated on demonstrated abilities rather than paper credentials, reflecting a broader bipartisan commitment.

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Source Information

Document Type

Congressional Bill

Official Title

Skills-Based Federal Contracting Act of 2025

Bill NumberHR 5235
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReceived in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Sponsor

Cosponsors

(2)
D: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.