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Congress·In Committee·about 1 year ago

Congress Targets Consulting Firms Working for China and Other Covered Foreign Clients in U.S. Contracting Limits

Also known as: Time to Choose Act of 2025

Legislative Progress

Filed
Review
Senate
House
President

Impacts

Mixed Impacts(1)
Federal Employee
Neutral
Positive Impacts(1)
Small Business Owner
Helps

Key Points

  • Would block federal agencies from hiring certain consulting firms if the firm (or its affiliates) also does consulting work for covered foreign entities like the Chinese government.
  • Consulting firms seeking federal work would have to certify up front that they do not have these foreign consulting contracts, and agencies would deny awards if they do.
  • Creates a limited national-security waiver, but only case-by-case, time-limited (up to 365 days, with one possible 180-day extension) and with notice to Congress and public posting in many cases.
  • Sets tough consequences for lying: agencies must end the contract and may ban the firm from future federal work; firms could also face major penalties under federal anti-fraud law.
  • Could change which big consulting companies can work with the U.S. government, which may affect costs, competition, and how quickly agencies can hire outside help.
National SecurityForeign PolicyConsumer ProtectionEconomy

Milestones

2 milestones2 actions
Feb 25, 2025Senate

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

Feb 25, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Within 1 year after the bill is enacted

Federal contracting rules are updated to require consulting firms to certify they do not consult for covered foreign entities.

Firms bidding on Federal consulting work would have to submit the new certification, and agencies would use it to decide who is eligible for awards.

After the new certification rule takes effect

Federal agencies begin rejecting or not awarding consulting contracts to firms that disclose covered-foreign consulting ties.

Some firms could lose new Federal consulting business quickly once the rule is live; agencies may switch to different vendors.

After the rule takes effect, as needed

Case-by-case national security waivers start being used in limited situations.

A conflicted firm might still do specific Federal work temporarily, but only if the agency can justify it, notify oversight offices, and (usually) disclose covered foreign clients on a public website.

Any time after the rule is in place and a violation is found

Contract terminations and possible bans from future Federal contracting occur for firms caught making false certifications.

Firms that misstate their foreign consulting ties could lose current Federal contracts and be blocked from new ones; this can also affect employees working on those projects.

Related News

5 articles

Source Information

Document Type

Congressional Bill

Official Title

Time to Choose Act of 2025

Bill NumberS 731
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Homeland Security and Governmental Affairs.

Sponsor

Cosponsors

(4)
D: 2R: 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.