[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8511 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 8511
To end preferences for disadvantaged individuals and businesses in
Government contracts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 27, 2026
Mr. Grothman introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the
Committees on Small Business, Transportation and Infrastructure, and
Armed Services, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
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 Discrimination in Government
Contracting Act''.
SEC. 2. ENDING FEDERAL CONTRACTING PREFERENCES FOR SMALL BUSINESSES
OWNED AND CONTROLLED BY SOCIALLY AND ECONOMICALLY
DISADVANTAGED INDIVIDUALS AND SMALL BUSINESSES OWNED AND
CONTROLLED BY WOMEN.
(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) in subparagraph (A), 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
``qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business concerns owned
and controlled by women'' each place that term
appears and inserting ``and qualified HUBZone
small business concerns'';
(ii) in paragraph (3)--
(I) in subparagraph (A), by
striking ``qualified HUBZone small
business concerns, small business
concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business
concerns owned and controlled by
women'' each place that term appears
and inserting ``and qualified HUBZone
small business concerns'';
(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 ``small business concern owned
and controlled by service-disabled
veterans, a small business concern
owned and controlled by socially and
economically disadvantaged individuals,
or a small business concern owned and
controlled by women'' and inserting
``or a small business concern owned and
controlled by service-disabled
veterans'';
(iii) in paragraph (4)--
(I) in subparagraph (D), by
striking ``small business concerns
owned and controlled by service-
disabled veterans, small business
concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business
concerns owned and controlled by
women'' and inserting ``and small
business concerns owned and controlled
by service-disabled veterans''; and
(II) in subparagraph (E), by
striking ``qualified HUBZone small
business concerns, small business
concerns owned and controlled by the
socially and economically disadvantaged
individuals as defined in paragraph (3)
of this subsection and for small
business concerns owned and controlled
by women'' and inserting ``and
qualified HUBZone small business
concerns'';
(iv) in paragraph (6), by striking
``qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business concerns owned
and controlled by women'' each place that term
appears and inserting ``and qualified HUBZone
small business concerns'';
(v) in paragraph (11)(B), by striking
``qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business concerns owned
and controlled by women'' and inserting ``and
qualified HUBZone small business concerns'';
and
(vi) in paragraph (13)(E)(i), by striking
``and Disadvantaged'';
(C) by striking subsection (m); and
(D) by redesignating subsection (n) as subsection
(m);
(4) in section 9 (15 U.S.C. 638)--
(A) in subsection (b)(7), by repealing subparagraph
(C); and
(B) in subsection (j)(2), by repealing subparagraph
(F);
(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 ``qualified HUBZone
small business concerns, small business
concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business
concerns owned and controlled by
women'' and inserting ``and qualified
HUBZone small business concerns''; and
(II) by striking clauses (iv) and
(v);
(ii) in paragraph (2)--
(I) in subparagraph (A), by
striking ``by qualified HUBZone small
business concerns, by small business
concerns owned and controlled by
socially and economically disadvantaged
individuals, and by small business
concerns owned and controlled by
women'' and inserting ``and by
qualified HUBZone small business
concerns'';
(II) in subparagraph (B), by
striking ``qualified HUBZone small
business concerns, small business
concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business
concerns owned and controlled by
women'' and inserting ``and qualified
HUBZone small business concerns'';
(III) in subparagraph (D), by
striking ``, qualified HUBZone small
business concerns, small business
concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business
concerns owned and controlled by
women'' and inserting ``and qualified
HUBZone small business concerns''; and
(IV) in subparagraph (F)(ii), by
striking ``and Disadvantaged''; and
(iii) in paragraph (3), by striking
``qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business concerns owned
and controlled by women'' and inserting ``and
qualified HUBZone small business concerns'';
(C) in subsection (h)--
(i) in paragraph (1)(A), by striking
``qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business concerns owned
and controlled by women'' and inserting ``and
qualified HUBZone small business concerns'';
(ii) in paragraph (2)--
(I) in subparagraph (E)--
(aa) in clause (i)(VI), by
striking ``small business
concerns owned and controlled
by socially and economically
disadvantaged individuals,
small business concerns owned
and controlled by women,'';
(bb) in clause (ii)(VII),
by striking ``small business
concerns owned and controlled
by socially and economically
disadvantaged individuals,
small business concerns owned
and controlled by women,'';
(cc) in clause (iii)(VIII),
by striking ``small business
concerns owned and controlled
by socially and economically
disadvantaged individuals,
small business concerns owned
and controlled by women,'';
(dd) by striking clause
(iv);
(ee) by redesignating
clauses (v), (vi), and (vii) as
clauses (iv), (v), and (vi),
respectively;
(ff) in clause (iv), as so
redesignated--
(AA) by striking
subclause (IV); and
(BB) by
redesignating
subclauses (V) and (VI)
as subclauses (IV) and
(V), respectively;
(gg) in clause (v), as so
redesignated--
(AA) by striking
subclause (IV); and
(BB) by
redesignating
subclauses (V) and (VI)
as subclauses (IV) and
(V), respectively;
(hh) in clause (vi), as so
redesignated--
(AA) by striking
subclause (IV); and
(BB) by
redesignating
subclauses (V) and (VI)
as subclauses (IV) and
(V), respectively; and
(ii) by striking clause
(viii); and
(II) in subparagraph (F), by
striking ``qualified HUBZone small
business concerns, small business
concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business
concerns owned and controlled by
women'' and inserting ``and qualified
HUBZone small business concerns''; and
(iii) in paragraph (4)(A)(ii)--
(I) in subclause (I), by adding
``and'' at the end;
(II) by striking subclause (II);
(III) by redesignating subclause
(III) as subclause (II);
(IV) in subclause (II), as so
redesignated, by striking ``; and'' and
inserting a period; and
(V) by striking subclause (IV);
(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 (1), by striking
``qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business concerns owned
and controlled by women'' and inserting ``and
qualified HUBZone small business concerns'';
(ii) in paragraph (2), by striking
``qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business concerns owned
and controlled by women'' each place that term
appears and inserting ``and qualified HUBZone
small business concerns'';
(iii) in paragraph (3)(B), by striking
``qualified HUBZone small business concerns,
small business concerns owned and controlled by
socially and economically disadvantaged
individuals, and small business concerns owned
and controlled by women'' and inserting ``and
qualified HUBZone small business concerns'';
and
(iv) in paragraph (4)--
(I) by striking subparagraphs (A)
and (D); and
(II) by redesignating subparagraphs
(B) and (C) as subparagraphs (A) and
(B), respectively;
(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 veterans', a `small
business concern owned and controlled by socially and
economically disadvantaged individuals', or a `small
business concern owned and controlled by women''' and
inserting ``or a `small business concern owned and
controlled by veterans''';
(B) in subsection (e), by striking ``a `small
business concern owned and controlled by veterans', a
`small business concern owned and controlled by
socially and economically disadvantaged individuals',
or a `small business concern owned and controlled by
women''' and inserting ``or a `small business concern
owned and controlled by veterans'''; 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'';
(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
women'' 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 veterans, as defined
in section 3(q) of the Small Business 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 paragraphs (1) and (2); and
(B) by redesignating 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) and (2), 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 ``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'';
(B) in section 3 (12 U.S.C. 635a(i)), by repealing
subsection (i); 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
(ii) in subsection (f)--
(I) by striking paragraph (4); and
(II) by redesignating paragraphs
(5) through (8) as paragraphs (4)
through (7), respectively.
(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.--The Small Business Act (15 U.S.C.
631 et seq.) is amended--
(A) in section 7(j) (15 U.S.C. 636(j))--
(i) 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
(ii) 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--
(aa) by striking clause
(i); and
(bb) by redesignating
clauses (ii) through (viii) as
clauses (i) through (vii),
respectively; and
(B) in section 46(e) (15 U.S.C. 657s(e))--
(i) in paragraph (1)--
(I) by striking subparagraph (B);
and
(II) by redesignating subparagraphs
(C), (D), and (E) as subparagraphs (B),
(C), and (D); and
(ii) in paragraph (2)--
(I) by striking subparagraphs (C)
and (D); and
(II) by redesignating subparagraphs
(E) and (F) as subparagraphs (C) and
(D), 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 CERTAIN 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 (as
defined by regulations of the Secretary) owned and
controlled by a socially and economically disadvantaged
individual (as defined in section 47113(a) of this
title) or'';
(2) in paragraph (4)(B), in the second sentence, by
striking ``small business concern owned and controlled by a
socially and economically disadvantaged individual or as a'';
and
(3) in paragraph (6), by striking ``small business concern
owned and controlled by a socially and economically
disadvantaged individual or a''.
(b) Disadvantaged Business Concern.--Section 47113 of title 49,
United States Code, is amended--
(1) in the section heading, by striking ``Minority and
disadvantaged business'' and inserting ``Small business concern
and qualified HUBZone small business concern'';
(2) in subsection (a)--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph
(2);
(3) by striking subsections (b) and (e);
(4) by redesignating subsections (c), (d), and (f) as
subsections (b), (c), and (d), respectively;
(5) in subsection (c) (as redesignated by paragraph (3)),
by striking ``small business concerns referred to in subsection
(b) of this section'' and inserting ``qualified HUBZone small
business concerns''; and
(6) in subsection (d)(1) (as redesignated by paragraph
(3)), by striking ``small business concerns referred to in
subsection (b)'' and inserting ``qualified HUBZone small
business concerns''.
(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, ETHNIC, AND GENDER-BASED 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) by amending subsection (a) to read as follows:
``(a) Qualified HUBZone Small Business Concern Defined.--In this
section, the term `qualified HUBZone small business concern' has the
meaning given that term in section 31(b) of the Small Business Act (15
U.S.C. 657a(b)).''; and
(2) in the first sentence of subsection (b), by striking
``, the number of small businesses owned and controlled by
women, and the number of small business concerns owned by
socially and economically disadvantaged individuals, by
gender,''.
(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, ETHNIC, AND SEX-BASED 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, ethnic, and sex-based preferences
in government contracts and awards
``The head of an executive agency may not--
``(1) take into consideration the race, ethnicity, or sex
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,
ethnicity, or sex 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, ethnic, and sex-based 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, ethnic, and sex-based preferences
in defense contracts and awards
``The head of an agency may not--
``(1) take into consideration the race, ethnicity, or sex
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,
ethnicity, or sex 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 racial, ethnic, and sex-based 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 or sex 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 or sex 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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