[House Hearing, 119 Congress]
[From the U.S. Government Publishing Office]
MARKUP OF VARIOUS MEASURES
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HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED NINETEENTH CONGRESS
SECOND SESSION
__________
HEARING HELD
MAY 20, 2026
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 119-037
Available via the GPO Website: www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
63-839 WASHINGTON : 2026
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HOUSE COMMITTEE ON SMALL BUSINESS
ROGER WILLIAMS, Texas, Chairman
PETE STAUBER, Minnesota
DAN MEUSER, Pennsylvania
BETH VAN DUYNE, Texas
JAKE ELLZEY, Texas
MARK ALFORD, Missouri
BRAD FINSTAD, Minnesota
TONY WIED, Wisconsin
ROB BRESNAHAN, Pennsylvania
BRIAN JACK, Georgia
KIMBERLYN KING-HINDS, Northern Marina Islands
DEREK SCHMIDT, Kansas
JIMMY PATRONIS, Florida
CLAY FULLER, Georgia
NYDIA VELAZQUEZ, New York, Ranking Member
MORGAN MCGARVEY, Kentucky
HILLARY SCHOLTEN, Michigan
LAMONICA MCIVER, New Jersey
GIL CISNEROS, California
KELLY MORRISON, Minnesota
GEORGE LATIMER, New York
DEREK TRAN, California
LATEEFAH SIMON, California
JOHNNY OLSZEWSKI, Maryland
MAGGIE GOODLANDER, New Hampshire
Sean Dillon, Majority Staff Director
Melissa Jung, Minority Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Roger Williams.............................................. 1
Hon. Nydia Velazquez............................................. 2
APPENDIX
Additional Material for the Record:
Text of Legislation:
H.R. 4238 - Disaster Loan Accountability and Reform Act...... 33
H.R. 8879 - Oversight and Transparency for Small Business
Certifications Act of 2026................................. 47
H.R. 826 - COVID Fraud Transparency Act of 2025.............. 55
H.R. 8880 - Small Business Cybersecurity Assistance
Evaluation Act of 2026..................................... 58
H.R. 8881 - SBA Artificial Intelligence Utilization Act of
2026....................................................... 62
H.R. 8882 - Main Street Competes Act......................... 66
H.R. 915 - Small Business Technological Act of 2025.......... 72
H.R. 2804 - Protecting Small Business Competitions Act of
2025....................................................... 74
H.R. 5498 - Small Business Health Options Awareness Act of
2025....................................................... 76
Amendments:
ANS to H.R. 5498, offered by Hon. Van Duyne.................. 79
ANS to H.R. 4238, offered by Hon. Williams................... 81
ANS to H.R. 2804, offered by Hon. Velazquez.................. 90
ANS to H.R. 826, offered by Hon. Williams.................... 92
Scholten Amendment, no. 1, to H.R. 5498 - Small Business
Health Options Awareness Act of 2025....................... 94
Morrison Amendment, no. 1, to H.R. 5498 - Small Business
Health Options Awareness Act of 2025....................... 95
Support Documents:
E-Vote Results............................................... 96
Minority Letter of Support for H.R. 2804..................... 107
Minority Main Street Competition Coalition Letter............ 119
Minority AI Chatbot Letter................................... 120
Majority eHealth Letter...................................... 123
Majority NACA Letter......................................... 124
Majority AEAW Letter......................................... 126
Majority NVSBC Letter........................................ 128
Minority Small Business Majority Letter...................... 129
Minority Main Street Alliance Letter......................... 131
Majority THATCH Letter....................................... 133
Votes:
ANS to H.R. 4238, offered by Hon. Williams agreed to by voice 134
ANS to H.R. 826, offered by Hon. Williams agreed to by voice. 135
ANS to H.R. 2804, offered by Hon. Velazquez agreed to by
voice...................................................... 136
ANS to H.R. 5498, offered by Hon. Van Duyne agreed to by
voice...................................................... 137
H.R. 4238 - Disaster Loan Accountability and Reform Act (As
Amended) Ordered to be reported by the Yeas and Nays: 23-0. 138
H.R. 8879 - Oversight and Transparency for Small Business
Certifications Act of 2026 Ordered to be reported by the
Yeas and Nays: 23-0........................................ 139
H.R. 826 - COVID Fraud Transparency Act of 2025 (As Amended)
Ordered to be reported by the Yeas and Nays: 23-0.......... 140
H.R. 8880 - Small Business Cybersecurity Assistance
Evaluation Act of 2026 Ordered to be reported by the Yeas
and Nays: 23-0............................................. 141
H.R. 8881 - SBA Artificial Intelligence Utilization Act of
2026 Ordered to be reported by the Yeas and Nays: 23-0..... 142
H.R. 8882 - Main Street Competes Act Ordered to be reported
by the Yeas and Nays: 23-0................................. 143
H.R. 915 - Small Business Technological Act of 2025 Ordered
to be reported by the Yeas and Nays: 23-0.................. 144
H.R. 2804 - Protecting Small Business Competitions Act of
2025 (As Amended) Ordered to be reported by the Yeas and
Nays: 23-0................................................. 145
Amendment #1 to the ANS to H.R. 5498 offered by Hon. Scholten
Ordered to be reported by the Yeas and Nays: 11-12......... 146
Amendment #1 to the ANS to H.R. 5498 offered by Hon. Morrison
Ordered to be reported by the Yeas and Nays: 11-12......... 147
H.R. 5498 - Small Business Health Options Awareness Act of
2025 (As Amended) Ordered to be reported by the Yeas and
Nays: 13-11................................................ 148
MARKUP OF VARIOUS MEASURES
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WEDNESDAY, MAY 20, 2026
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 2:08 p.m., in Room
2360, Rayburn House Office Building, Hon. Roger Williams
[chairman of the Committee] presiding.
Present: Representatives Williams, Stauber, Meuser, Van
Duyne, Ellzey, Alford, Finstad, Wied, Bresnahan, Jack, King-
Hinds, Schmidt, Patronis, Fuller, Velazquez, McGarvey,
Scholten, McIver, Cisneros, Morrison, Latimer, Tran, Simon,
Olszewski, and Goodlander.
Chairman WILLIAMS. The committee will now come to order.
Without objection, the Chair is authorized to declare a recess
of the committee at any time. As required by House rules, a
copy of the legislative measures have been made available to
Members and the public at least 24 hours in advance. Without
objection, the committee will vote electronically in accordance
with committee rules and regulations developed by the House
Committee on rules and administration. I now recognize myself
for opening remarks.
Good afternoon and welcome to everyone. Today we will mark
up the important bills that support all businesses and reflect
a consistent message that main street deserves a government
that is transparent, accountable, and invested in its success.
As Chairman, I am proud of the work this committee is doing to
ensure that small businesses remain a key engine of the
American economy, driving growth and opportunity to communities
across the country. Together with the Ranking Member, my
friend, we have continued to work on legislation that reflects
our commitment to rooting out fraud, strengthening oversight of
the SBA programs, and ensuring that small businesses have the
tools and the resources they need to thrive.
Several of the bills we will consider today address
accountability and transparency within the SBA. Among them are
bills that would impose stronger reporting and budgeting
requirements on the SBA's disaster loan program, strengthen
reporting requirements on COVID-era loan fraud, and ensure the
SBA certification programs are delivering for small businesses
they were designed to serve. We also will consider legislation
that ensures small businesses can fairly compete for federal
contracts by codifying the Rule of Two, as well as legislation
that examines impacts of federal antitrust agencies'
enforcement decisions on the small business community too.
Rounding out today's markup are bills that modernize the
SBA's lending practices by clarifying the flagship 7a loan
program, covers technology and software investments, increasing
oversight of the SBA's use of artificial intelligence, and
examining the effectiveness of federal cyber resources for
small businesses. As we continue to grow in a digital economy,
we cannot let success to capital--or access to capital impair
Main Street America. And finally, we will consider a bill to
enhance awareness of healthcare coverage options through the
SBA's existing outreach program.
Small businesses employ nearly half the American workforce
and drive innovation coast to coast and all states in between.
They deserve a federal government that works as hard as they
do, and the committee has a responsibility to deliver on that.
The legislation before us today is a direct reflection of that
commitment, and I am proud of the bipartisan effort that has
brought us to today's markup, and I look forward to working
with my colleagues to advance meaningful legislation that
empowers small businesses and strengthens the communities they
serve. With that, I yield to my friend and the distinguished
Ranking Member from New York, Ms. Velazquez, for her opening
remarks.
Ms. VELAZQUEZ. Thank you, Mr. Chairman, for convening this
markup today. Let me begin by thanking you for adding H.R.
2804, the Protecting Small Business Competition Act, to the
agenda today. The Rule of Two is critical to preserving
competition and allowing small business contractors to
successfully enter, compete, and remain in the industrial base.
H.R. 2804 is a priority for me, and I look forward to working
with you to get it enacted into law before the end of the
session.
I plan to lend my support to all but one bill, under
consideration today. Five of the bills under consideration will
arm our Committee with more information to oversee the SBA and
ensure program integrity. I applaud Members for working
together on these bills, which will increase reporting, improve
accountability, and ensure policymakers have information to see
how the agency is operating and serving entrepreneurs. On one
hand, we have these bipartisan bills calling studies and
reports, but on the other, we are doing very little to address
the real concerns of small businesses.
President Trump's failed economic agenda is leaving small
businesses with mounting anxiety, uncertainty, and economic
pain. They're struggling with tariffs, higher borrowing costs,
and surging food and gas prices. I want to make it clear that
Democrats on this committee stand ready to conduct oversight of
the SBA and work together to address the needs of small
employers, entrepreneurs, and the communities they support.
That is where our focus needs to be, delivering real results
for small businesses. Thank you again, Mr. Williams. I yield
back.
Chairman WILLIAMS. The gentlelady yields back. Does any
other Member seek recognition for the purpose of making an
opening statement?
All right, seeing none, we will move to the consideration
of the first bill.
H.R. 4238
All right, the committee now moves to consideration of H.R.
4238, the Disaster Loan Accountability and Reform Act,
introduced by Representative Tim Moore from the great state of
North Carolina, with Representative Goodlander as the committee
co-lead. The clerk will report the bill.
The CLERK. H.R. 4238. A bill----
Chairman WILLIAMS. Without objection, H.R. 4238 is
considered as read and open for amendment. I have an amendment
in the nature of a substitute at the desk. The amendment has
been distributed in advance. The clerk will report the
amendment.
The CLERK. Amendment in the nature of a substitute to H.R.
4238.
Chairman WILLIAMS. Without objection, the amendment will be
considered as read and will serve as the base text for the
purpose of further amendment. I now recognize myself for
remarks as the--as on the bill and the amendment.
I would first like to thank our colleague Mr. Moore from
the great state of North Carolina for introducing this bill.
During the 2024 hurricane season, the SBA Disaster Loan Relief
Program under the Biden administration exhausted its funding
entirely for the first time since the program's inception. And
this has forced a pause on new loan disbursements while
thousands of Americans were actively recovering from Hurricanes
Milton and Helene. Survivors across impacted communities were
left waiting for help, not because help was unavailable, but
because Biden's SBA failed to properly and timely notify
Congress of a funding shortfall. And that's unacceptable, I
think we all agree, and it cannot happen again.
So H.R. 4238, the Disaster Loan Accountability and Reform
Act, responds directly to that catastrophe by strengthening
oversight and transparency, improving budgeting requirements,
and building greater accountability into the disaster lending
process. This bill ensures the program can keep pace with the
scale of modern disasters we see. It reflects our commitment to
helping families, homeowners, and small businesses recover and
rebuild, and it also gives Americans the confidence that when a
disaster strikes their community, relief will be there. I urge
my colleagues to vote yes on H.R. 4238 as amended, and I yield
back.
I now recognize Representative Goodlander from the great
state of New Hampshire to speak on the bill and the amendment.
Ms. GOODLANDER. Thank you, Mr. Chairman. Ranking Member
Velazquez, thank you for your leadership. I am very proud to be
leading our bipartisan Disaster Loan Accountability Reform Act
alongside two great colleagues from the state of North
Carolina, Tim Moore and Don Davis. Congressman Davis represents
communities in eastern North Carolina that were among the
hardest hit by Hurricane Helene. We saw in that moment what it
looks like when our government falls short of our people when
they need us most. And our bipartisan bill is an answer to
those preventable failures.
So here is what happened. In 2024 disaster struck.
Hurricane after hurricane made landfall across the United
States. Communities were devastated. Families lost their homes.
Small businesses, they watched their livelihoods wash away. And
this was precisely the moment that the Small Business
Administration's disaster loan program was made for, low-
interest loans to help businesses reopen, to help homeowners
rebuild, to give the American people a fighting chance. But on
October 15th, 2024, right in the midst of this crisis, the SBA
announced that its disaster loan account was empty, exhausted,
gone. It couldn't approve new loans. It couldn't disburse money
to people who were waiting. That lasted for more than 2 months
while Congress scrambled to act. Two months for families
sleeping in FEMA trailers, for small businesses who had just
enough hope left to fill out an application and wait.
Now, here is the part I think for all of us who believe in
accountability, and in this Committee I know we do, this lapse
was not inevitable. It was not caused by some unprecedented
force of nature or disaster beyond imagination. It was caused
by preventable failures. I think the lesson of 2024 is simple.
Disaster response cannot be opaque and reactive. It must be
transparent and accountable. The SBA didn't meet its
requirements, and by the time the authorizing committees found
out that there was a problem, there was no time left to act.
You know, in New Hampshire, we are not strangers to disasters.
Severe flooding, nor'easters, ice storms that shut down roads
and destroy infrastructure. Our farmers up in our Upper Valley,
our producers up in our North Country, our growers in the
Monadnock region, they face weather events that can wipe out
literally generations of work.
When disaster strikes, SBA's disaster loans are often
genuinely the first and only lifeline available. It is the
difference between rebuilding and closing for good. So our
bipartisan bill will make sure that America's small businesses,
our family farmers, never have to face a moment where they're
told, ``We're sorry, we ran out of money, and nobody told
Congress in time to fix it.'' So here is what our bill does. It
requires the SBA to report monthly on the status of the
disaster loan account, not when disaster has been declared, but
continuously, so that here in Congress we always have current
information. It requires the SBA to alert us here in Congress
within 24 hours when the account falls below 10 percent of the
10-year average, and it requires separate budget line items so
that we can see exactly what's being requested and, and why.
It also directs the Government Accountability Office to
conduct two what I think are important studies that will
examine administrative changes that were made to the disaster
loan program in 2023 and 2024, changes that may have
contributed to the faster than expected depletion of the
account. We've got to understand what happened. We need the
data. We need the accountability.
And there is one more provision I want to highlight in this
bill. Until the SBA administrator submits the required monthly
report to Congress, the administrator cannot engage in official
travel. So this may sound like a small thing, but I think it is
a meaningful accountability mechanism to be sure that we've got
the information we need. This, at the end of the day, reporting
what we learned in 2024, is not a bureaucratic box-checking
exercise. It is a basic obligation of an executive branch
agency to be accountable to the legislative branch and the
people we represent. So I am very proud to be leading this
bipartisan bill. I am really grateful for the work of all of
our colleagues to make sure that when Americans need help in
the midst and after a disaster, we are ready with funds in the
account and with Congress fully informed. So I urge my
colleagues to support the amendment in the nature of a
substitute and the underlying bill. And with that, I yield
back.
Chairman WILLIAMS. The gentlelady yields back. Are there
any other Members who wish to be recognized for a statement on
this bill?
I now recognize the Ranking Member to speak on the bill and
the amendment.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I support H.R.
4238, the Disaster Loan Accountability and Reform Act, as
amended. The SBA disaster loan program, which provides long-
term, low-interest direct loans to homeowners, renters, small
business owners, and nonprofits after declared disasters plays
a critical role in the federal government's direct disaster
response efforts. The SBA failed to properly alert Congress of
its impending budget shortfall, which led to a lapse in program
funding and a prolonged delay in much-needed relief to affected
communities. While the SBA cannot effectively address our
changing climate, it can do a better job at updating Congress
about the status of the disaster loan account. That is why I
support H.R. 4238, the Disaster Loan Accountability and Reform
Act, or DLARA.
This bill requires common sense reporting from the SBA and
transparency from the White House when they submit their annual
budget request. It also requires the administrator to notify
Congress when program funds run low and directs the GAO to
study how past rulemaking has affected the speed of that
process. This bill adds transparency to the process to ensure
disaster-affected communities never have to face a lapse again.
I thank all the sponsors, including Ms. Goodlander, Ms. King-
Hinds, and Mr. Meuser, for their work.
This is a very important legislation. I know because I
lived through Sandy in New York and Maria when it struck Puerto
Rico. This is a very important disaster program, and it is one
of the most important programs. You know, there is nothing more
important than when natural disasters strike to immediately
work to make families whole that are suffering. And even so
many lost their lives. So thank you for the work that you've
done in a bipartisan way.
Chairman WILLIAMS. The gentlelady yields back. Does anyone
wish to offer an amendment?
Seeing none, the question now occurs on the adoption of the
amendment in the nature of a substitute to H.R. 4238.
All in favor say aye.
All opposed say no.
In the opinion of the Chair, the ayes have it. The
amendment in the nature of a substitute to H.R. 4238 is
adopted.
The question now comes on ordering H.R. 4238 as amended to
be reported favorably to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it. H.R. 4238 is
agreed to.
Ms. KING-HINDS. Mr. Chairman, I request for a recorded
vote.
Chairman WILLIAMS. A Member has asked for a recorded vote.
A vote has been requested and a roll call vote is ordered.
Pursuant to Committee Rule 13 and House Rule 11, further
proceedings on the bill are postponed.
H.R. 8897
The Committee now moves to the consideration of H.R. 8897,
the Oversight and Transparency for Small Business
Certifications Act of 2026, introduced by Representatives
Olszewski and Wied. The clerk shall report the bill.
The CLERK. H.R. 8879, a bill to amend the Small Business--
--
Chairman WILLIAMS. Without objection, H.R. 8879 is
considered as read and open for amendment. I now recognize
Representative Olszewski from the great state of Maryland. For
a statement on the bill.
Mr. OLSZWESKI. Thank you very much, Mr. Chairman, Ranking
Member Velazquez, and to all of my colleagues here today. I
want to begin by thanking Representative Wied for his
partnership and his leadership on this important effort. I am
proud to help lead this bipartisan bill because I believe that
we can and we should always work harder to ensure that federal
programs work efficiently for the American people. Congress
created the three small business contracting programs this bill
impacts; the Women-Owned Small Business Program, Historically
Underutilized Business Zone Program, and the Service Disabled
Veteran-Owned Small Business Program. These programs help our
government recruit and retain quality small businesses while
also leveling the playing field for them to enter, compete, and
to have success in the federal market.
In the past years, each program has had its own online
certification platform and designated staff within the SBA's
Office of Government Contracting and Business Development. As a
result, small businesses had far different certification
experiences. For example, in 2023, service-disabled veterans
seeking an SBA certification were served by 20 dedicated SBA
staff and 54 contractors who processed their applications in
about 3 weeks. The women-owned small business program
applicants, however, were served by 8 SBA staff and 2
contractors, resulting in a backlog of roughly 7,000
applicants, with an average wait time of almost a year.
Ensuring fairness and promoting efficiency for all small
business owners is an overarching goal of all Members of this
committee.
Our bill will require the SBA to provide greater detail in
their budget justification documents regarding their
certification processes, infrastructure, and timelines, as well
as participants' backlogs and wait times for small business
applicants. That will allow this committee to more effectively
conduct oversight and to identify issues with the certification
process and SBA portals in a more timely manner for American
small business owners across this country. I urge my colleagues
to support this legislation, and I yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize Representative Wied from the great state of
Wisconsin for a statement on the bill.
Mr. WIED. Thank you, Mr. Chairman. Our bipartisan
legislation, H.R. 8879, the Oversight and Transparency for
Small Business Certifications Act will require the SBA to
report on the certifications and contract awards for its small
business programs. SBA programs, including the Service Disabled
Veteran-Owned Small Businesses programs, are important to
ensure all entrepreneurs are given a chance to succeed. By
improving the transparency of programs like these, Congress can
ensure that the appropriate measures are taken to certify or
decertify firms to help root out waste, fraud and abuse. I am
proud to co-lead this bill alongside my friend and colleague
Representative Olszewski, and I encourage my colleagues to
support this common-sense bipartisan legislation.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement on the
bill? All right.
Seeing none, I would like to recognize the Ranking Member
to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I appreciate the
work of my colleagues, Representatives Olszewski and Wied to
move this bill forward. Our committee's ability to assist small
businesses depends in part on our ability to conduct
appropriate and effective oversight of SBA. Unfortunately, we
do not always receive sufficient or timely responses to
inquiries and what should be routine reporting is often
delayed, sometimes past the point of relevancy. For example,
under the previous administration, both Chairman Williams and I
raised concerns about whether the committee had a full picture
of the Unified Certification Platform's challenges, and I
frequently heard from women-owned businesses about the backlog
of WSB applications.
Currently, SBA is not forthcoming with any information.
They do not respond to specific requests, nor provide regular
reports and data that have been routinely provided in the past.
This bill will ensure we have consistent information on one of
the SBA's core missions: certifying small business federal
contractors. Current and aspiring government contractors
Already face challenges in the federal market. Unnecessary time
or added hurdles, just to get a certification before they can
even compete for contracting opportunities, should not be one
of them. I urge my colleagues to vote yes, and I yield back my
time.
Chairman WILLIAMS. The gentlelady yields back. Thank you.
I now recognize myself to speak in support of this
legislation.
As the Trump administration continues to focus on
government efficiency and eliminate waste, fraud, and abuse in
the federal programs, Congress needs the necessary information
about where these programs are succeeding and where they need
improvement. H.R. 8879, the Oversight and Transportation--or
Transparency for Small Business Certifications Act of 2026,
requires the SBA to annually report to Congress on
certification activities across the SBA's small business
contracting programs. This bill would provide Congress with
detailed information and certification granted or denied, of
application processing times, and overall program
participation. I urge my colleagues to vote yes on H.R. 8879,
and I yield back.
Does anyone wish to offer an amendment? Seeing none, the
question now occurs on ordering H.R. 8879 reported favorably to
the House. All those in favor say aye.
All those opposed say no.
In the opinion of the Chair the ayes have it. H.R. 8879
is----
Mr. WIED. Mr. Chairman, I ask for a recorded vote.
Chairman WILLIAMS. A recorded vote has been requested. A
roll call vote is ordered. Pursuant to Committee Rule 13 and
House Rule 11 further proceedings on this bill are postponed.
H.R. 826
The committee now moves to consideration of H.R. 826, the
COVID Fraud Transparency Act of 2025, introduced by
Representative Latimer and Representative Bean, Representative
Mfume, and myself, and the clerk will report the bill.
The CLERK. H.R. 826, a bill to require----
Chairman WILLIAMS. Without objection, the H.R. 826 is
considered as read and open for amendment. I have an amendment
in the nature of a substitute at the desk. The amendment has
been distributed in advance. The clerk will report the
amendment.
The CLERK. Amendment in the nature of a substitute to H.R.
8----
Chairman WILLIAMS. Without objection the amendment will be
considered as read and will serve as base text for the purpose
of further amendment.
I now recognize myself for remarks on the bill and the
amendment.
First, I would like to thank Representatives Latimer, Bean,
and Mfume for introducing this bill with me last year. The SBOA
IG estimates that roughly $200 billion in potentially
fraudulent relief funds were discharged through COVID-19 relief
programs. Earlier this year, the SBA under the Trump
administration referred more than 562,000 suspected fraudulent
loans totaling approximately $22 billion to Treasury for
further action, and that is a disturbing amount to anyone.
Even the 5 years following the pandemic, we are still
working to highlight the need for continued transparency and
oversight of fraud investigations and recovery efforts. H.R.
826, the COVID Fraud Transparency Act of 2025, recognizes the
importance of remaining responsive and informed as those cases
continue to be investigated and resolved. By implementing more
comprehensive reporting and oversight requirements, Congress
can better understand the methods and categories of fraud that
occurred during the pandemic, therefore strengthening
safeguards to protect taxpayer dollars in future emergency
relief programs. I urge my colleagues to vote yes on H.R. 826.
I yield back.
I now recognize Mr. Latimer from the great state of New
York to speak on the bill.
Mr. LATIMER. Thank you, Mr. Chairman, and I want to express
my appreciation for your leadership on this bill, along with
colleagues, Congress Members Bean and Mfume. This bill is a
bipartisan effort to deal with the disbursement of SBA loan
products, which we saw during the COVID-19 pandemic totaled
$1.2 trillion in Economic Injury Disaster Loan and Paycheck
Protection Program. Those are significant amounts of dollars
that affected small businesses that were adversely impacted by
the crisis. But as always, when there is any federal program,
there are bad actors. And so the SBA Inspector General, in
coordination with other federal agencies, has worked to
investigate those cases of fraud and hold those bad actors
accountable.
This Congress provides, in this bill, Inspector Generals
with the funding and the resources necessary to combat fraud,
and I am very proud to co-lead this with Chairman Williams and
his leadership. This bill requires the SBA Inspector General to
issue quarterly reports to Congress on the number of borrowers
engaged, and that will help us detect the fraud factors. I
encourage my colleagues to support this common-sense bipartisan
bill, and once again, thank the Chairman and our Ranking Member
Nydia Velazquez for their leadership in this moment. Mr.
Chairman, I yield back.
Chairman WILLIAMS. The gentleman yields back.
Are there any other Members who wish to be recognized for a
statement?
All right, seeing none, I would like to recognize the
Ranking Member to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I appreciate your
efforts alongside Mr. Latimer to enhance reporting on pandemic
fraud. The COVID Fraud Transparency Act will further enable
this committee to carry out its oversight responsibilities
effectively. During the global COVID-19 pandemic, the Small
Business Administration stepped in and served as critical
lifeline to small businesses. The SBA distributed more than
$1.2 trillion in economic aid and executed 14 years of lending
in 14 days. In an effort to disburse funds quickly, SBA
weakened and removed its internal controls. Organized crime
syndicates, transnational gangs, and other criminals
exploitated these weakened controls and stole billions from the
American people.
The legislation we are considering today will provide the
Committee with better data. H.R. 826 will require the SBA
Inspector General to send periodic reports to this Committee
for the next 2 years with detailed information regarding the
number of fraud cases and the types of fraud, as well as the
number of cases that has been resolved. In closing, I want to
underscore the importance of continued oversight and
transparency as we work to safeguard taxpayer resources and
strengthen accountability. The single most effective way to
combat fraud is to provide full funding for the Inspector
General, and so that he has the infrastructure he needs in
order to conduct the type of oversight that is important and
necessary. We don't know when the next pandemic will strike. We
have to be ready, and we need to learn the lessons of the past.
I urge my colleagues to support H.R. 826 as amended, and I
yield back.
Chairman WILLIAMS. The gentlelady yields back, and thank
you.
And does anyone wish to offer an amendment? Seeing none,
the question now occurs on the adoption of the amendment in the
nature of a substitute to H.R. 826.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it. The
amendment in the nature of a substitute to H.R. 826 is adopted.
The question now occurs on ordering H.R. 826's amendment to be
reported favorably to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it, and H.R. 826
as amended is agreed to.
Mr. FULLER. Mr. Chairman, I ask for a recorded vote.
Chairman WILLIAMS. A Member asks for a recorded vote, and a
recorded vote has been requested. A roll call vote is ordered.
So pursuant to Committee Rule 13 and Rule 11, further
proceedings on this bill are postponed.
H.R. 8880
The committee now moves to consideration of H.R. 8880, the
Small Business Cybersecurity Assistance Evaluation Act of 2026,
introduced by Representatives Simon and Bresnahan. The clerk
will report the bill.
The CLERK. H.R. 8880, a bill to require----
Chairman WILLIAMS. Without objection H.R. 8880 is
considered as read and open for amendment. I now recognize the
fast-moving Ms. Simon from the great state of California to
speak on this legislation.
Ms. SIMON. Well, thank you, Chair. I cannot believe I made
it. Thank you also our Ranking Member Velazquez and, and thank
you to Congressman, my colleague, Bresnahan for co-leading with
me this extremely important, I would say critical, bipartisan
effort. I am proud to speak in support of the Small Business
Cybersecurity Assistance Act. Now, we know that small
businesses are relying more and more on digital tools to reach
customers and access capital. In fact, the United States
Chamber of Commerce estimates that 99 percent of small
businesses use at least one technology platform. And at the
same time, cyber threats are becoming more sophisticated and
damaging, especially for the smallest businesses that are most
likely to not be able to recover from these attacks. From
phishing to ransomware, these attacks to insurance fraud and
data breaches, small businesses are increasingly being targeted
by bad and criminal actors. For a small business owner, a
single attack can mean not just lost revenue, but interrupted
operations or even closure. We've seen this.
Our bill is simple. It would direct the Government
Accountability Office to conduct a comprehensive assessment of
the cybersecurity threats and vulnerabilities facing our small
businesses. The GAO would also identify existing federal
programs, initiatives, and capital resources available to help
entrepreneurs prepare for and mitigate and defend themselves
every single day against these attacks. Now, this bill is about
ensuring that we have the best data available to craft
effective policies that protect small businesses from these
attacks. Small businesses drive innovation. They create jobs, I
am speaking to the choir here, and support communities in every
corner of this country. Especially as artificial intelligence
continues to evolve we must make sure that small businesses are
not left behind, that they are not vulnerable, that they are
equipped and ready to defend themselves.
And I want to thank Chairman Williams and Ranking Member
Velazquez for including this bill in today's markup and for
their continued leadership on behalf of our country's small
businesses. And I want to thank you, and I urge all of my
colleagues to support our important legislation. And I yield
back, sir.
Chairman WILLIAMS. The gentlelady yields back.
I now recognize Mr. Bresnahan from the great state of
Pennsylvania to speak on this legislation.
Mr. BRESNAHAN. Thank you, Mr. Chairman, and thank you to
the Ranking Member. I rise today alongside Representative Simon
in support of the Small Business Cybersecurity Assistance
Evaluation Act of 2026. This bipartisan legislation directs the
GAO to study the effectiveness of existing federal
cybersecurity assistance resources available to small
businesses and identify where improvements are needed. In the
United States, small businesses are 210 percent more likely to
experience cyber incidents compared to larger companies, a
challenge Congress can no longer afford to overlook. By
evaluating gaps in current federal programs, this bill will
help ensure small businesses have better access to the tools,
training, and resources they need to defend themselves against
cyberattacks. As cyber threats continue to evolve, our support
system for small businesses must evolve as well. I strongly
urge my colleagues to support this legislation. Thank you, Mr.
Chairman. I yield back.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement?
Seeing none, I would like to recognize the Ranking Member
to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I thank
Representatives Simon and Bresnahan for their leadership on
this important issue. According to the U.S. Chamber of
Commerce, 99 percent of small businesses use at least one
technology platform, with most using at least four. Yet only a
quarter of small businesses use cybersecurity and malware
detection tools. That is because small businesses lack the
time, skills, and resources to adopt effective cybersecurity
measures compared to their larger competitors. Cybercriminals
are well aware of these vulnerabilities and exploit them at
main street's expense. A single cyberattack could pose an
existential threat to a small business.
The federal government has multiple cybersecurity resources
for small businesses, but they are spread across agencies
rather than provided by the expert in small business outreach,
the SBA. The Small Business Cybersecurity Assistance Evaluation
Act will direct the GAO to study and report to Congress the
state of federal small business cybersecurity assistance and
make recommendations to optimize their impact and use by main
street entrepreneurs. I urge all colleagues to vote yes. With
that, I yield back.
Chairman WILLIAMS. The gentlelady yields back. Thank you.
And I now recognize myself to speak in support of this
legislation.
Small businesses are increasingly vulnerable to
cybersecurity threats that negatively affect the business
operations, profit margins, and reputation. From ransomware to
fraud, bad actors have been targeting main street, and yet many
businesses lack the resources necessary to defend themselves.
Many federal agencies have cybersecurity assistance programs,
tools, and resources for small businesses, but these efforts
are often difficult to navigate, underutilized, or outdated,
usually, and that is what H.R. 8880 aims to address. This bill
will help expose where cybersecurity assistance is lacking.
H.R. 8880, the Small Business Cybersecurity Assistance
Evaluation Act of 2026, directs the Government Accountability
Office to evaluate the cyber-attacks threatening small
businesses and the effectiveness of federal programs in
preventing them.
Now, this bill would also require the GAO to evaluate the
effectiveness, coordination, and awareness of existing federal
cybersecurity assistance programs for small businesses. The
legislation takes a practical approach by evaluating what works
and what does not, ensuring the small businesses have the tools
and information needed to protect themselves. So I urge my
colleagues to vote yes on H.R. 8880, and I yield back.
Does anyone wish to offer an amendment? Seeing none, the
question now occurs on ordering H.R. 8880 reported favorably to
the House. All in favor say aye.
All opposed say no.
In the opinion of the Chair, the ayes have it, and H.R.
8880 is----
Mr. BRESNAHAN. Mr. Chairman.
Chairman WILLIAMS. Yes, sir. What purpose do you seek?
Mr. BRESNAHAN. I ask for a recorded vote.
Chairman WILLIAMS. A Member has asked for a recorded vote,
and a recorded vote has been requested. A roll call vote is
ordered, and pursuant to Committee Rule 13 and House Rule 11,
further proceedings on this bill are postponed.
H.R. 8881
The committee now moves to consideration of H.R. 8881, the
SBA AI Utilization Act of 2026, introduced by Representatives
Finstad and Latimer. The clerk will report the bill.
The CLERK. H.R. 8881, a bill to amend----
Chairman WILLIAMS. Without objection, H.R. 8881 is
considered as read and open for amendment.
I now recognize Mr. Finstad from the great state of
Minnesota to speak on this legislation.
Mr. FINSTAD. Thank you, Chairman Williams. I am happy to
speak today in support of my bill, the SBA Artificial
Intelligence Utilization Act. I also serve on the Ag Committee,
and AI on the Ag Committee means something very different. So I
am going to make sure I have my talking points right here for
the SBA. The artificial intelligence and machine learning
continue to revolutionize the way businesses conduct
themselves, and it is important that the federal government,
including the Small Business Administration, look into the
benefits that can be gained from incorporating these
technologies. There is an opportunity here. AI could be a
useful tool for the SBA to improve its information processing
capabilities, ease its administration, and better assist the
entrepreneurs and small businesses of America.
However, like any new technology, it raises questions about
transparency, reliability, oversight, and risk. This bill will
simply mandate that the SBA report to Congress annually about
the use of AI and machine learning by the SBA. What benefits or
risks may result from this technology, and how the SBA assesses
the appropriateness, effectiveness, and the value of using
these technologies. This is a common-sense oversight measure.
It does not mandate the use of AI, nor does it prohibit
innovation. Instead, it ensures Congress has the visibility
into these new tools that are being used and whether they are
helping the SBA better fulfill its mission for small
businesses.
As technology evolves, Congress has the responsibility to
ensure federal agencies are using it responsibly,
transparently, and effectively. This is a bipartisan bill, and
I want to thank Congressman Latimer for his work on this. I
appreciate the committee's consideration of this bill, and I
urge my colleagues to support it. I yield back.
Chairman WILLIAMS. I now recognize Mr. Latimer from the
great state of New York, to speak on this legislation.
Mr. LATIMER. Thank you, Mr. Chairman, and thank you,
Congressman Finstad, for your leadership on this bill. It is a
bipartisan, common-sense bill. It reflects that we as a nation
are dealing with the growth of AI with potential uses that
carry great benefit, potential benefit, and great potential
risks. And there is questions of accuracy and data privacy that
affect all of us across the aisle, on both sides of the aisle.
I am pleased to co-lead this bill with Congressman Finstad
under the leadership of Chairman Williams, and then also
Ranking individual, Nydia Velazquez.
This bill directs SBA to report on the steps the agency can
take to identify and manage the benefits and risks posed by
these AI use cases. And we think this is an important step for
our small businesses. I support the bill. I hope we all will
support the bill. And Mr. Chairman, I yield back.
Chairman WILLIAMS. The gentleman yields back.
Are there any of the Members who wish to be recognized for
a statement? All right.
Seeing none, I would like to recognize the Ranking Member
to speak on this bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I commend
Representatives Finstad and Latimer for their leadership on
this bill. In October of 2023, New York City launched a first-
of-its-kind artificial intelligence chatbot. It was meant to
answer the questions of entrepreneurs about opening small
businesses, local small business services, regulatory
compliance, and business planning and strategy. On day one, I
spotted issues with the accuracy of the chatbot's outputs and
its ability to answer questions. In response, I led a letter to
the White House urging the consideration of common sense
safeguards in any AI tool used by the federal agencies. Mr.
Chairman, I ask unanimous consent to insert the letter into the
record.
Chairman WILLIAMS. So agreed.
Ms. VELAZQUEZ. According to an investigation by a local
news outlet, my concerns were very real. The investigation
determined that the chatbot was consistently hallucinating and
encouraging small business owners to break laws and
regulations, which led it to be shut down.
AI has the incredible potential to revolutionize the way
the government works, but it also holds incredible risk. As the
committee overseeing the SBA, we have a duty to ensure the
agency considers and uses these tools responsibly and
effectively. This bill directs the SBA to report annually on
its AI use, the benefits and risks, and effective risk
mitigation measures. With that, I urge all colleagues to vote
yes, and I yield back.
Chairman WILLIAMS. Thank you. I now recognize myself to
speak on the bill. Businesses across the country adopting
artificial intelligence, which is reshaping how they operate,
detect fraud, improve customer service, and process
information. And there is no reason why the SBA cannot also
benefit from these efficiencies. In the SBA artificial--The
Artificial Intelligence Utilization Act of 2026 is a forward-
looking bill introduced by my colleagues Representative Finstad
and Latimer. H.R. 8881 requires the SBA's report on how it is
using AI to modernize its technology and improve operations.
As the federal government works to prevent fraud in
taxpayer dollars, AI tools can help the SBA better identify
suspicious activity, detect improper payments, and strengthen
oversight of the agency programs. By reporting the SBA's use of
artificial intelligence, this bill will help promote a smarter,
more efficient government while supporting innovation,
protecting taxpayers' dollars, and improving services for Main
Street America. So I urge my colleagues to vote yes on H.R.
8881. I yield back.
Does anyone wish to offer an amendment? Seeing none, the
question now occurs on ordering H.R. 8881 reported favorably to
the House. All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it, and H.R.
80----
Mr. FINSTAD. Mr. Chair?
Chairman WILLIAMS. Yes, sir?
Mr. FINSTAD. I would ask for a recorded vote.
Chairman WILLIAMS. All right, a Member has asked for a
recorded vote. A recorded vote has been requested. A roll call
vote is ordered. Pursuant to Committee Rule 13 and House Rule
11, further proceedings on this bill now are postponed.
H.R. 8882
The committee now moves to consideration of H.R. 8882, the
Main Street Competes Act, introduced by Representatives
Scholten and Schmidt. The clerk will report the bill.
The CLERK. H.R. 8882, a bill to amend----
Chairman WILLIAMS. Without objection, H.R. 8882 is
considered as read and open for amendment.
I now recognize Ms. Scholten from the great state of
Michigan to speak on this legislation.
Ms. SCHOLTEN. Thank you so much, Mr. Chairman. I am so
thrilled to speak in support of my bill, the Main Street
Competes Act. While small businesses are the true powerhouses
of our economy, they're often left to compete against a handful
of large corporations. Without a level playing field, this can
lead to higher prices for consumers and small businesses alike.
Not to mention an increase in predatory pricing and other
exclusionary practices. When industry consolidation goes too
far, innovation is stifled, and markets become difficult for
small businesses to enter. The price we all pay for unfair
monopolistic conduct is real and it needs to be addressed.
My bill would do just that by directing the SBA's Office of
Advocacy to work with the FTC and the Department of Justice to
examine the gaps in our antitrust laws. Our Office of Advocacy
is main street's voice within the federal government, and it is
only right that they're in lockstep with our nation's top
antitrust enforcement agencies. This bill will not only enhance
collaboration between these agencies on behalf of small
businesses, it will also require advocacy to submit a report to
Congress detailing antitrust violations reported by small
businesses. By ensuring main street has a seat at the table, we
can build an economy that creates opportunity for everyone. I
want to thank my colleague, Representative Schmidt, for working
with me on this legislation. I strongly urge my colleagues to
support this bill.
Chairman WILLIAMS. The gentlelady yields back. I now
recognize Mr. Schmidt from the great state of Kansas to speak
on this legislation.
Mr. SCHMIDT. Thank you, Mr. Chairman, and I want to thank
my colleague for her longstanding leadership on this issue. I
am glad to join in this bipartisan effort this year. The only
thing I would add to the conversation, I worked a little bit on
the antitrust enforcement side, both under state law and also
under federal law, and one of the things that's challenging is
that these investigations and enforcement actions, when
appropriate, they can be very resource-intensive. And
historically, they are focused very much consumer-focused
matters. We don't want them to be less consumer-focused. But we
do want to recognize that small businesses are a critical
player who have a stake in the outcome of antitrust enforcement
and investigation decisions and in the deployment of scarce
resources in those actions.
And the reporting requirements in this bill will ensure
that small business has a voice at the table and that this
committee and our colleagues have the information that we need
to make appropriate policy judgments to be sure that those
marketplaces that benefit all of us when they're competitive
are properly served from the vantage point of small business,
as well as the vantage point of consumers, and the vantage
point of overall public policy and structured markets. So I
want to thank my colleague for her work on this. Thank you, Mr.
Chairman, for scheduling this, and I encourage all of our
colleagues to support this measure. I yield back.
Chairman WILLIAMS. The gentleman yields back. Are there any
other Members who wish to be recognized for a statement?
Ms. GOODLANDER. Mr. Chairman, if I may?
Chairman WILLIAMS. Yes, ma'am.
Ms. GOODLANDER. I want to just say, I want to say that I
strongly support this bill. I am really grateful to my
colleagues for their leadership on it. As someone who came to
this committee from the Department of Justice, where my job was
to enforce our federal antitrust laws, this piece of
legislation is near and dear to my heart. What I saw on the
front lines of the fight to enforce these laws, which for far
too long have not been enforced, is consolidation like never
before across our economy.
We see it from the big ag corporations who are screwing
family farmers, the mega-merge grocery chains that are
squeezing family-owned independent grocers. I just sat with
many of them a few minutes ago before this hearing. We see what
consolidation is doing. And I am a proud capitalist, but I am a
capitalist who really believes that capitalism without
competition is not capitalism. It is a form of exploitation
that is making business impossible for our small businesses. So
this, this is a common-sense bill that really will fill gaps. I
wish that this bill had been law when I served in the Justice
Department, because when you're in the federal executive
branch, you can often be far too removed from the communities
who you're proud to serve.
And this is going to create the connective tissue that we
need between Congress and our antitrust enforcers, and
ultimately the connective tissue and the information flow that
we need from small businesses who are on the front lines of
this fight. So I thank my colleagues for their leadership on
this bipartisan bill, and I urge all of our colleagues to
support this. Thank you, and I yield back.
Chairman WILLIAMS. The gentlelady yields back. Are there
any other Members who wish to be recognized for a statement?
All right, seeing none, I would like to recognize the Ranking
Member to speak on this bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. For the last half
century, agencies tasked with maintaining a competitive
environment and a level playing field have neglected to enforce
the laws on the books. As a result, our economy has grown
increasingly consolidated. One study has found that 75 percent
of industry have become more concentrated since the mid-1990s.
Firms who garner market power often use that power against
their competitors in the form of anti-competitive practices
like price discrimination or self-preferencing. These practices
increase the barrier to entry for small firms or use their
software as a digital tool for accessing markets.
The SBA is a critical part of our nation's pro-competition
toolkit, supporting small business creation and growth, but it
cannot bolster small businesses alone. Strong antitrust
enforcement has a real role to play in protecting a level
playing field for small businesses. This bill makes perfect use
of our Office of Advocacy, asking it to monitor the actions of
other agencies and how their actions affect small businesses
while leveraging their economic analysis to help Congress
understand the structural issues small firms face when
competing in the market and developing recommendations for how
we can address those issues. I want to thank Representatives
Scholten and Schmidt for their work on this bill. I encourage a
yes vote, and I yield back.
Chairman WILLIAMS. The gentlelady yields back. Thank you.
And I now recognize myself to speak on this bill.
Competition is a key tenant of capitalism. It allows
consumers to choose with dollars between their business that
will offer the best product, price, or service. Without
appropriate competition, innovation in the U.S. economy will
suffer. And H.R. 8882, the Main Street Competes Act, aligns
with the SBA's mission to preserve free competitive enterprise
and strengthen the small--the overall economy of our nation by
requiring the Department of Justice and the Federal Trade
Commission to provide data on the SBA Office of Advocacy on
antitrust complaints, investigations, and enforcement actions
involving small business.
It also detects advocacy to evaluate these trends and
provide recommendations to Congress on ways to improve
competition and address harmful anti-competitive conduct. This
bill takes a targeted, data-driven approach to better
understand those competitive pressures and determine whether
current antitrust enforcement efforts adequately protect small
businesses. So this bill will ensure that policymakers have the
information they need to support a competitive marketplace for
main street businesses can grow and can succeed. So I urge my
colleagues to vote yes on H.R. 8882, and I yield back.
Now, does anyone wish to offer an amendment? All right
seeing none, the question now occurs in ordering H.R. 8882
reported favorably to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
And each Member will seek recognition.
What is it?
Mr. SCHMIDT. Mr. Chairman, I would request a recorded vote.
Chairman WILLIAMS. A recorded vote has been requested. A
roll call vote is ordered. Pursuant to Committee Rule 13 and
House Rule 11, further proceedings on this bill now are
postponed.
H.R. 915
The committee now moves to consideration of H.R. 915, the
Small Business Technical Act of 2025, introduced by
Representatives Alford, Lee, and Mrvan, with Representative
McGarvey as the committee co-lead. The clerk will report the
bill.
The CLERK. H.R. 915, a bill to authorize----
Chairman WILLIAMS. Without objection, H.R. 915 is
considered as read and open for amendment.
I now recognize Mr. Alford from the great state of Missouri
to speak on this legislation.
Mr. ALFORD. Well, thank you, Mr. Chair and Ranking Member.
Thank you for excusing my absence from most of this. We've been
across the hall in Appropriations Markup. This bill is very
important to me. Small businesses are the backbone of our
economy. They create jobs, they strengthen local communities,
and drive innovation across this country. But in today's
economy, a small business cannot compete without access to
modern technology and digital tools. Whether it is cloud-based
accounting software, payroll systems, cybersecurity
protections, inventory management platforms, or emerging AI
tools, technology is no longer a luxury for small businesses.
It is essential to ensuring that main street keeps up with
Wall Street. Unfortunately, Mr. Chairman, under the SBA's
flagship 7a loan program, there have been unnecessary ambiguity
surrounding whether these types of tools qualify as eligible
business expenses. And that uncertainty creates confusion for
lenders and limits access to capital for entrepreneurs simply
trying to modernize their operations. While I am grateful that
Administrator Loeffler quickly amended the SBA standard
operation procedure to add clarity to these products that are
allowed, it is still important for Congress to do our job and
to make sure that such clarity is done with the force of law.
The Small Business Technological Advancement Act provides a
simple, common-sense fix. Our legislation clarifies that SBA 7a
loans may be used for business software, cloud computing
services, and other technologies that facilitate business
operations, including tools powered by artificial intelligence.
This bill does not create a new program, and it does not
increase the size or scope of the 7a program. It simply updates
SBA policy to reflect the realities of today's economy. And it
gives small businesses the certainty they need to invest in the
tools required to grow and to compete.
You know, for many main street businesses, technology
adoption can mean the difference between expanding or falling
behind. A small manufacturer may need software to improve
logistics and inventory tracking. A local retailer may rely on
cloud-based payment processing and cybersecurity tools. These
are practical investments that help small businesses operate
smarter and compete with larger firms that already have access
to these resources.
Quite simply, at the end of the day, this bill is about
making sure that America's small businesses are not left behind
in an increasingly digital economy. And if we want small
businesses to succeed, which we all do here, to create jobs, to
remain competitive, we need to make sure that federal programs
keep pace with modern business practices.
So, Mr. Chairman, I urge my colleagues to support this
bipartisan legislation, and I look forward to continuing to
work with this committee to advance it. Thank you so much, and
I yield back.
Chairman WILLIAMS. The gentleman yields back.
I now recognize Mr. McGarvey from the great state of
Kentucky to speak on this legislation.
Mr. McGARVEY. Thank you, Mr. Chairman. Thank you, Mr.
Chairman, Ranking Member Velazquez, for including your this
bill and for your support in this markup. You know, look, a lot
has changed in the last 25 years. My kids have never seen a
phone book. In fact, when they come here, one of the things
they like to do is see the phones that are still in the
cloakroom because they're not used to seeing a landline either.
We can't pretend that technology is, is going to take over how
we operate our businesses. Technology has taken over and
changed how we operate our businesses. And what we have to do
is make sure that the rules and regulations keep up with that
technology.
That's why I am proud to work with my friend Congressman
Alford from the great state of Missouri on this smart piece of
legislation. The Small Business Technological Act, it is just a
common-sense step towards ensuring that small businesses are
able to take on modern day problems with modern day solutions.
This bipartisan bill clarifies that small businesses may
continue to use 7a loans to finance business software, cloud
computing services, and other technologies that support their
day-to-day operations.
And I say continue because we want to make sure they can
continue to do this because this works. We have seen how
successful making technological programming an eligible use of
funds in the 7a program has been, and I fully support this bill
giving small businesses the certainty they need to continue
doing so. Small businesses are the backbone of the American
economy. If we want them to stay that way, then we are going to
have to make sure we are doing what we can to put them in a
position to succeed. This bill continues to do that. It is why
I support it. I encourage my colleagues to support it, and I
yield back.
Chairman WILLIAMS. The gentleman yields back.
Are there any other Members who wish to be recognized for a
statement?
Seeing none, I would like to recognize the Ranking Member
to speak on the bill.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. I just want to
thank Representative Alford, McGarvey, and Lee for their work
on this matter and send a message to the financial institutions
that partner with SBA and SBA that the intent is clear. The 7a
loans can be used to finance digital tools. And with this
change, it is my hope we will track an increase in its usage
regarding digital tools. So I urge my colleagues to support
this bill, and I yield back.
Chairman WILLIAMS. The gentlelady yields back.
I now recognize myself to speak on the bill.
I would like to thank my friend Representative Alford for
introducing this bill earlier this Congress. From inventory and
payroll to customer service and payment processing, modern
business software is essential to the daily operation of main
street businesses across this country. And H.R. 915, the Small
Business Technology Act of 2025, provides an incredibly
important clarification and removes any ambiguity by explicitly
permitting small businesses to use SBA 7a loans to purchase and
upgrade technology systems and business software, including
those that utilize artificial intelligence to support their
daily operations. This vital step to allow small business to
fully utilize the SBA's flagship 7a loan program is another way
to make sure that main street does not get left behind. This
common-sense clarification will provide main street with
financing needed to operate, modernize, and compete in the
modern economy. So I urge my colleagues to vote yes on H.R.
915, and I yield back.
Now, does anyone wish to offer an amendment? All right,
seeing none, the question now occurs on ordering H.R. 915
reported favorably to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it, and H.R. 915
is agreed to.
Mr. ALFORD. Mr. Chairman?
Chairman WILLIAMS. Member seeks recognition. For what
purpose?
Mr. ALFORD. I ask for a recorded vote, please.
Chairman WILLIAMS. A recorded vote has been requested. A
roll call vote is ordered.
Pursuant to Committee Rule 13 and House Rule 11 further
proceedings on this bill are postponed.
H.R. 2804
The committee now moves to consideration of H.R. 2804, the
Protecting Small Business Competitions Act 2025, led by the
Ranking Member and myself. And the clerk will report the bill.
The CLERK. H.R. 2804, a bill to amend----
Chairman WILLIAMS. Without objection H.R. 2804 is
considered as read and open for amendment. The bill's sponsor,
Ranking Member Velazquez, has an amendment in the nature of a
substitute at the desk. The amendment has been distributed in
advance. The clerk will report the amendment.
The CLERK. Amendment in the nature of a substitute to H.R.
2----
Chairman WILLIAMS. Without objection, the amendment will be
considered read and will serve as the base text for the purpose
of further amendment.
I now recognize the Ranking Member to speak on her
legislation and the amendment.
Ms. VELAZQUEZ. Thank you, Chairman Williams. I appreciate
your work to reach an agreement on this bill, and thank you to
Representative Cisneros and Chairman Williams for your support
and efforts to move it forward. When the administration began a
review of the government's procurements regulations last year,
retaining and codifying a critical small business requirement
known as the Rule of Two became a top priority. The Rule of Two
is the foundation for small business participation in the
industrial base. It is simple and effective. A contract must be
set aside for a small business only competition if there is an
expectation that small businesses will bid and can do the work.
This long-established policy was put in place in
recognition that if small firms were required to compete
against large corporations it would be unlikely they will ever
win a contract. With the Rule of Two in place, well over $100
billion is awarded annually to small businesses through
contracts set aside for small business competitions. In fiscal
year 2024 alone, $72 billion was awarded through general small
business set-asides. That does not include contracts awarded
through one of SBA procurement programs, which my legislation
protects and enables.
I want to be clear about why we need to pass my bill and
what it does and doesn't do. Small government contractors face
an increasingly hostile federal marketplace. As consolidation
puts more opportunities out of reach for small firms, we need
to have policies in place to ensure contracts that can be
performed by small businesses are actually awarded to small
businesses. The Protecting Small Business Competition Act
retains one of these key policies and puts into law a current
regulatory requirement. It does not expand the Rule of Two past
its current application. We do not require all contracts to be
awarded based on competition or override mandatory sourcing,
contracting officer discretion, choice of vehicle, and so
forth. We are preserving the CAM process that triggers small
business competition. That is why there is strong support among
the small business community. Hundreds of firms and
organizations are urging support for my bill, and I ask
unanimous consent to insert letters into the record, Mr.
Chairman.
Chairman WILLIAMS. So moved.
Ms. VELAZQUEZ. When it was clear the Rule of Two was in
jeopardy last year, the small business community rallied, made
their voices heard, and secured its extension. We need to do
our jobs now and codify it. I urge all my colleagues to vote
yes, and I yield back.
Chairman WILLIAMS. The gentlelady yields back.
I now recognize myself to speak on this bill.
For decades, the Rule of Two has been one of the most
important safeguards to ensure small businesses can fairly
compete in the federal marketplace and the industrial base. And
for so many small businesses, especially service-disabled
veterans, these contracting opportunities are critical to
creating jobs, growing their business, and continuing their
service to their country.
H.R. 2804, the Protecting Small Business Competitions Act,
as amended, is a bipartisan bill that codifies the Rule of Two
into law. To be clear, the Rule of Two was implemented in
regulation over 40 years ago, and this bill does not change the
current procurement process. This is an important point that I
really want to, to highlight. And the Trump administration
reaffirmed the importance of this policy for small businesses
by preserving the Rule of Two in the revolutionary FAR
overhaul, by restoring certainty back to small businesses that
rely on it most. This bill guarantees that contracts above the
simplified acquisition threshold must be set aside for small
businesses whenever a contracting officer expects at least 2
qualified small businesses to compete.
This bill, as amended, mirrors the administration's effort
to restore predictability for small businesses competing in the
federal marketplace and reserve opportunities for main street
job creators, innovators, and veteran entrepreneurs. So over
340 small businesses and associations, including veterans and
tribes, support this legislation. So as we move this bill to
the House floor, I am committed to working alongside the
Ranking Member and all federal contractors to strengthen
opportunities that small businesses will have, ensuring outside
organizations are not unintentionally impacted by this policy.
Now I would like to thank the Ranking Member for working
with me on this bill, and that to protect small business
success. I urge my colleagues to vote yes on H.R. 2804, and I
yield back.
Are there any other Members who wish to be recognized for a
statement?
Mr. CISNEROS. Mr. Chairman, I wish to be recognized.
Chairman WILLIAMS. I now recognize Mr. Cisneros to speak on
this bill and the amendment.
Mr. CISNEROS. Thank you, Mr. Chairman. And I am proud to
stand with you and Ranking Member Velazquez and hundreds of
small businesses and stakeholder groups across the country to
safeguard small businesses and protect the right to compete for
government contracts. I applaud the leadership and persistence
of the Ranking Member towards codifying the Rule of Two.
The Rule of Two gives small businesses a fighting chance
and prevents large corporations from boxing them out of
competition. At a time when our industrial base is shrinking,
it is exactly the type of bipartisanship that our small
businesses need from Congress to support the continued access
and entry into the federal market and to compete for federal
contracts. We heard as much at our contracting and
infrastructure subcommittee hearing, where one of the witnesses
put it bluntly: It has been such a priority for our small
businesses that I had to ask the SBA administrator about it the
only time she joined our full committee nearly a year ago. The
advocacy of the small business community helped retain the Rule
of Two in the recent overhaul to the Federal Acquisition
Regulations. However, there is a 4-year sunset provision that
makes the future retention of the Rule of Two less secure. That
is why I urge my colleagues to support H.R. 2804 and codifying
the Rule of Two. I yield back.
Chairman WILLIAMS. Are there any other Members who wish to
be recognized for a statement? All right. Does anyone wish to
offer an amendment to the amendment in the nature of a
substitute?
Seeing none, the question now occurs on the adoption of the
amendment in the nature of a substitute to H.R. 2804. All those
in favor say aye. All those opposed say no. In the opinion of
the Chair, the ayes have it. The amendment in the nature of a
substitute to H.R. 2804 is adopted.
The question now occurs on ordering H.R. 2804 as amended to
be reported favorably to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it.
Mr. STAUBER. Mr. Chair?
Chairman WILLIAMS. The Member will seek recognition for
what purpose?
Mr. STAUBER. I ask for a recorded vote.
Chairman WILLIAMS. Ask for a recorded vote. A recorded vote
has been requested and a roll call vote is ordered. Pursuant to
Committee Rule 13 and House Rule 11, further proceedings on
this bill are now postponed.
H.R. 5498
Chairman WILLIAMS. The committee now moves to consideration
of H.R. 5498, the Small Business Health Options Awareness Act
of 2024, introduced by Representatives Van Duyne, Tenny, and
Hern, and the clerk will report the bill.
The CLERK. H.R. 5498, a bill to require----
Chairman WILLIAMS. Without objection H.R. 5498 is
considered as read and open for amendment. The bill sponsor,
Ms. Van Duyne, has an amendment in the nature of a substitute
at the desk. The amendment has been distributed in advance. The
clerk will report the amendment.
The CLERK. Amendment in the nature of a substitute to H.R.
54----
Chairman WILLIAMS. Without objection the amendment will be
considered as read and will serve as to the base text for the
purpose of further amendment. I now recognize Ms. Van Duyne to
speak on her legislation and the amendment.
Ms. VAN DUYNE. Thank you very much, Mr. Chair. Small
businesses drive innovation and they create jobs and they
strengthen communities across the country, but too often
they're forced to navigate a confusing and expensive healthcare
system without clear information about all of the options that
are available to them. In North Texas, I regularly hear from
small business owners who want to provide quality health
coverage for their employees, but they simply don't have the
time or resources to sort through every possible option while
also trying to keep their businesses running. And that's why
the Trump administration's creation of Individual Coverage
Health Reimbursement Arrangements, or ICHRAs, was such an
important step forward.
ICHRAs give employers a flexible, tax-advantaged way to
help employees purchase the health coverage that works best for
them and their families. They reduce administrative burden on
employers, they expand choice for workers, and they create a
more modern and affordable approach to employer-sponsored
coverage. The problem is not that they don't work. The problem
is that many small business owners don't even know that they
exist. So my bill, the Small Business Health Options Awareness
Act, is a common-sense effort to fix that problem by ensuring
that the Small Business Administration actively shares
information about ICHRAs through its district offices, its
small business development centers, websites, social media, and
other outreach tools already used to communicate with job
creators across the country.
This legislation does not create a new program or a mandate
or a bureaucracy. It simply ensures that small businesses have
access to information about an option that could help them
provide more affordable and flexible health benefits to their
employees. I hope my colleagues on both sides of the aisle can
agree that small businesses deserve to know all the tools that
are available to help them compete and grow and support their
workers. And I urge support for this legislation, and I yield
back.
Chairman WILLIAMS. The gentlelady yields back. Are there
any other Members who wish to be recognized for a statement?
Seeing none, I would like to recognize the Ranking Member
to speak on the bill and speak on the amendment.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. Well, I agree with
my colleagues that it is important to provide more information
to small businesses so that they can better meet the healthcare
needs of their workers. I unfortunately cannot support this
legislation for a number of reasons. First, the bill would
require the SBA and the SBDCs to distribute materials only on
individual coverage health reimbursement accounts, often
referred to as ICHRAs. Over half of all Affordable Care Act
marketplace enrollees are small business owners, employees, or
self-employed. By directing the SBA to provide information only
on ICHRA without requiring information on the ACA Marketplace
creates a significant gap in the guidance available to small
businesses.
Many employers rely on the SBA and SBDC as a trusted
resource and presenting only one option risks limiting their
understanding of the full range of choices. To make informed
decisions, small businesses need a complete overview of all
options available to them. With that said, ICHRAs need fixing
to truly offer quality health care. ICHRAs can be used by
employers to discriminate against certain classes of workers by
shifting older or sicker employees, for example, into the
individual marketplace, which in turn raises premiums and
increases overall risks.
A Brookings Institution analysis found that allowing
employers to offer ICHRAs alone with a group health plan could
increase premiums anywhere from 16 to 93 percent. And if an
employee is offered an ICHRA, they are not eligible for
subsidized marketplace coverage unless their share of the
premium is less than 10 percent. For many low-wage workers,
they will be better off without an ICHRA.
Put simply, it doesn't make sense. And even more baffling,
This bill forces SBDCs to spread the word while the President's
budget eliminates their funding and SBA refuses to pay them on
time for services rendered. The Colorado SBDC hasn't received
their first quarter payment of $742,000, which is typically
awarded in early February. Because of the delays, services have
been cut, employees may be furloughed, and centers may close.
Relying on SBDCs when they are being cut shows a clear lack of
understanding of the entire situation at hand. Instead of
pushing a partisan devices bill, we should be working together
to conduct oversight of the SBA and ensure our resource
partners are getting paid on time for the counseling services
they provide. We can also work together to offer a
comprehensive slate of healthcare information to ensure
employers and the workers can make informed decisions. To truly
help with the affordability crisis, every option should be
provided to businesses because doing so could mean the very
survival of the operation, and doing so should be a shared
priority. Unfortunately, this is not the case.
Instead, the Trump administration is bilking taxpayers to
bankroll a billion-dollar ballroom. And rather than lowering
costs and making life better for small businesses, the Trump
administration is making life harder and more expensive. They
have ripped healthcare from millions, cut food assistance for
kids, veterans, and seniors, and raised prices on everything
from groceries to utilities. And let's not get started on the
price of gas. Republican policies spike premiums during an
ongoing affordability crisis, rip health coverage away from
millions of Americans, to pay for tax cuts for the rich. And
this, this is your plan for healthcare? The bottom line: this
is a messaging bill that won't accomplish anything. The SBA
already has the authority to do it if it chooses. In reality,
it is just an opportunity for Members to talk about healthcare
and give the appearance of taking action. I urge my colleagues
to vote no. I now yield back.
Chairman WILLIAMS. The gentlelady yields back.
I thank you, and I now recognize myself to speak on the
bill and the amendment.
One of the biggest challenges facing small business today
is the rising cost of providing employee healthcare benefits.
In the first Trump administration, individual coverage health
reimbursement arrangements, known as ICHRAs, were made
available to employers to offer flexible tax-advantaged health
insurance coverage by allowing them to reimburse employees for
the cost of premiums for their individual health coverage.
Offering flexible, affordable healthcare insurance plans will
increase the attraction of small businesses when competing with
larger companies for talent. And even at the state level,
lawmakers today are incentivizing small businesses to adopt
ICHRAs.
H.R. 5498, the Small Business Health Options Awareness Act,
is a common-sense bill that enhances the Trump administration's
efforts to expand affordable healthcare options to small
businesses by leveraging existing outreach programs to educate
small business on how ICHRAs offer competitive health benefits.
This bill supports the administration's efforts to increase
affordability in all sectors by giving employees of small
businesses affordable healthcare options. I urge my colleagues
to vote yes on H.R. 5498 as amended, and I yield back.
Does anyone wish to offer an amendment to the amendment on
the nature of a substitute?
Ms. SCHOLTEN. I do, Mr. Chairman.
Chairman WILLIAMS. For what purpose does the gentlelady
seek recognition?
Ms. SCHOLTEN. I have an amendment at the desk.
Chairman WILLIAMS. There is an amendment at the desk. We
will briefly pause while staff distribute the amendment. Okay,
the clerk will report the amendment.
The CLERK. Amendment to the amendment in the nature of a
substitute to H.R. 54----
Chairman WILLIAMS. Without objection the amendment is
considered as read. I now recognize Ms. Scholten from the great
state of Michigan for 5 minutes on the amendment.
Ms. SCHOLTEN. Mr. Chairman, thank you so much. I couldn't
agree more with your statements. Back home in Michigan too, the
number one thing that I hear about when visiting from small
businesses is their deep concerns over the costs of healthcare,
especially employee-provided healthcare. Finding the right
health insurance can be incredibly complicated. Having the
wrong health insurance is costly. Small businesses should have
access to every tool, every option available to them and their
employees so that there is no question that the Small Business
Administration should be playing a role in educating business
owners about their coverage. I like this idea.
However, the approach taken in H.R. 5498, the Small
Business Health Options Awareness Act, emphasis on options is
incomplete. The bill would require the SBA to provide
information on one and only one healthcare option: the
Individual Coverage Health Reimbursement Accounts, or ICHRAs.
Through ICHRAs, employers can reimburse their employees for
qualified healthcare costs. While this option may be useful for
some employers, it is by no means a silver bullet to the larger
problem within our healthcare system.
For example, some individuals who, who may qualify for
ICHRAs would be ineligible for other healthcare coverage such
as the Affordable Care Act premium tax credits. By requiring
the SBA to inform entrepreneurs about this option at the
expense of other coverage plans, this bill pushes a program
that won't work for many entrepreneurs. As a Member of this
committee, we are all too familiar with the pitfalls of a one-
size-fits-all approach, and we should be wary of legislation
like this that stands no chance of addressing the diverse
challenges that small businesses face.
So let's, let's do it. Let's have the SBA inform small
business owners of their options, all their options, when it
comes to healthcare. And if this program is the best, if it is
one that all the employers want to choose, then there would be
no problem. We'll see how great it is and undoubtedly how many
will choose it. My amendment is simple. It would require the
SBA to share information on healthcare options in general
without putting one particular plan over the other. It is
because our business owners deserve options that work best for
their unique needs. And I think we all hear from businesses in
our district that are struggling to care for their workers and
sustain this operation.
So let's focus our efforts on giving our small businesses
the flexibility and the options the information that they need
to choose what's best for them. I urge my colleagues to support
this amendment, and I yield back.
Chairman WILLIAMS. The gentlelady yields back. Is there
further debate on the amendment?
Ms. Van Duyne, recognized for 5 minutes.
Ms. VAN DUYNE. I very much appreciate that. Again, you
know, the amendment that is being put on the table basically
guts my original bill by removing the entire focus on the
ICHRAs and replacing it with vague healthcare outreach
language. The purpose of this legislation is to address a
specific awareness gap for small businesses about the ICHRAs,
not create a broad new healthcare communications mandate for
SBA. ACA exchanges and Medicaid already receive extensive
federal outreach and taxpayer-funded promotion. It is already
happening. It is been happening for years. ICHRAs do not, which
is exactly why this bill was introduced. I urge my colleagues
to support the bill, and I yield back.
Chairman WILLIAMS. The gentlelady yields back.
Is there further debate on the amendment?
Ms. SCHOLTEN. Mr. Chairman, I would just like to add that
if we are going to urge the SBA into a brand new arena of
informing small businesses about their healthcare options, the
bill's title needs to live up to its name and provide all of
those options to small businesses. Currently, the SBA is not
involved in informing their partners, their participants, about
healthcare options. Forcing it to only inform them about one
option does not give them the full picture.
Chairman WILLIAMS. The gentlelady yields back.
Is there further debate on the amendment?
Ms. VELAZQUEZ. Mr. Chairman?
Chairman WILLIAMS. Ranking Member is recognized for 5
minutes.
Ms. VELAZQUEZ. I support Ms. Scholten's amendment. I think
that is straightforward. Why are people so afraid of providing
information and let the people that are going to be benefiting
from it, the ability to make an informed decision by explaining
what are the options that they have in front of them? Why do we
have to push for only one option? That could be--that will make
some of them ineligible. So I ask my colleagues to support the
amendment. Thank you.
Chairman WILLIAMS. The gentlelady yields back. Is there
further debate on the amendment?
Mr. STAUBER. Mr. Chair?
Chairman WILLIAMS. Mr. Stauber is recognized for 5 minutes.
Mr. STAUBER. I want to yield some of my time to
Representative Van Duyne.
Ms. VAN DUYNE. Thank you very much.
Ms. Scholten, I would be more than happy to entertain if
you want to change the name of the bill. I would have loved to
have changed the name of the bill of the Affordable Care Act,
which is anything but, or the Inflation Reduction Act, which
was anything but. So if you would like to support a different
name for the bill, let me hear it. Thank you. I yield back.
Chairman WILLIAMS. The gentlelady yields back.
The gentleman yields back?
Mr. STAUBER. I yield back, yes.
Chairman WILLIAMS. The gentleman yields back. Is there
further debate on the amendment?
Mr. CISNEROS. Mr. Chairman, I would like to be recognized.
Chairman WILLIAMS. The gentleman's recognized.
Mr. CISNEROS. I would like to yield some time, yield my
time to Ms. Slotkin. Scholten, sorry.
Ms. SCHOLTEN. Happens all the time. If the title is what
you're concerned about, Ms. Van Duyne, we can change it to the
ICHRA Information Act, which would be a more apt description of
what you're trying to do here. But I think the overall purpose
of what you're trying to accomplish is actually noble. And as
the number one issue that small businesses are struggling with
right now, healthcare affordability, we absolutely should be
encouraging the SBA to provide them with all options, but
that's not what this bill does. And so it is confusing, it is
misleading to our small businesses, and that's not what we
should be in the business of doing. The amendment is very
simple. Let's just provide it with all the options and they can
choose the best one for them. Thank you.
Chairman WILLIAMS. The gentleman yields back?
Mr. CISNEROS. I would just like to say, Mr. Chairman, that
I too, also support this amendment. And again, if it is
important for us to provide everybody with all the information
possible on all the health care plans available. So why not?
You know, if the SBA is going to provide information on this,
provide all the information that's out there possible to all
the programs that are available. And with that, I support this
amendment and I yield back.
Chairman WILLIAMS. Okay. Is there further debate on the
amendment?
Recognize Mr. Schmidt.
Mr. SCHMIDT. No, it is fine.
Chairman WILLIAMS. Okay, is there further debate on the
amendment? Okay.
Thank you, Ms. Scholten, for offering an amendment to this
legislation.
However, I urge my colleagues to vote no on this amendment.
I yield back. The question now occurs on the amendment offered
by the gentlelady from Michigan.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the noes have it, and the
amendment is not agreed to.
Ms. SCHOLTEN. Mr. Chairman, I request a recorded vote.
Chairman WILLIAMS. A recorded vote is requested, and a roll
call vote is ordered. Further proceedings on the amendment and
the bill are postponed. Are there additional amendments?
Ms. MORRISON. Mr. Chair, I would like to be recognized.
Chairman WILLIAMS. For what purpose does the gentlelady
seek recognition?
Ms. MORRISON. Mr. Chair, I have an amendment at the desk.
Chairman WILLIAMS. There is an amendment at the desk. We
will briefly pause while staff distribute the amendment. The
clerk will report the amendment.
The CLERK. Amendment to the amendment in the nature of a
substitute to H.R. 5498.
Chairman WILLIAMS. Without objection, the amendment is
considered as read. I now recognize Dr. Morrison from the great
state of Minnesota for 5 minutes on the amendment.
Ms. MORRISON. Thank you very much, Mr. Chair. My amendment
adds the requirement that when the Small Business
Administration and Small Business Development Centers are
publicizing or posting information about individual coverage
health reimbursement arrangements or Insurance Coverage
Replacements, or ICHRAs, on their website, they must include a
notice explaining to small businesses that ICHRAs may prevent
employees from accessing premium tax credits under the
Affordable Care Act marketplace for which they would otherwise
be eligible.
Small businesses and their employees should be provided
with all pertinent information so they can make informed
choices for themselves and their families. I want to stress
that many people receive worse health care coverage under
ICHRAs and that their use can make people ineligible for
premium tax credits that can be used for more comprehensive and
affordable coverage. Additionally, ICHRAs may lead to
healthcare discrimination against certain employees and push
other healthcare costs even further by adding higher-risk,
part-time, and older employees to the exchange while reserving
better healthcare options for top executives.
As a physician, I know how crucial having access to
affordable health insurance is to keeping people healthy and
the overall integrity of our healthcare system. In addition to
ICHRAs being an unproven creation of the Trump administration
with little initial data to support the idea that they save
costs, with the chaos and instability caused by the so-called
One Big Beautiful Bill, insurance markets have been further
destabilized and premiums have skyrocketed, making ICHRAs an
even less secure option for coverage. We should be working
together to ensure that small businesses have access to
information about all types of healthcare coverage so they can
make the choice that's best for them, not putting them at
greater risk for inadequate coverage.
I urge my colleagues to vote in favor of this amendment to
ensure the Small Business Administration is providing small
businesses with the relevant information they need to make
informed decisions about their healthcare coverage. Thank you,
Mr. Chair, I yield back.
Chairman WILLIAMS. The gentlelady yields back.
Is there further debate on the amendment?
I now recognize Ms. Van Duyne from Texas for 5 minutes.
Ms. VAN DUYNE. Thank you very much, Mr. Chairman. This
amendment is one-sided and extraordinarily misleading because
it highlights only potential subsidy impacts while ignoring the
benefits of employer-sponsored coverage flexibility under
ICHRAS. It also implicitly pushes employees toward remaining on
subsidized ACA coverage instead of employer-supported coverage
options. Further, ACA premium subsidies have been repeatedly
identified as vulnerable to improper payments, eligibility
issues, and fraud. Congress, GAO, and the HHS OIG have all
raised concerns about inefficient income verification and
improper enrollment practices from the ACA subsidy structure.
Rather than helping small businesses offer coverage, this
amendment appears focused on steering individuals toward
taxpayer-funded ACA subsidies, a system that has faced repeated
concerns over improper payments, eligibility issues, and fraud.
I urge my clients not to support this amendment, and I yield
back.
Chairman WILLIAMS. The gentlelady yields back. Is there any
further debate on the amendment?
I now recognize the Ranking Member from New York, Ms.
Velazquez, for 5 minutes.
Ms. VELAZQUEZ. No one can deny in this committee that small
businesses are struggling with the rising cost of healthcare,
if they can provide it. And this is a crisis that has been
manufactured by this administration by enacting the policies
that they have implemented. So small businesses and their
employees are struggling with healthcare costs. And with this
affordability crisis, small businesses and their employees need
all the pertinent information. They need to know that their
employees could be worse off with ICHRA, and they need to know
that their use could make them ineligible for the premium tax
credit that they will provide that will provide more generous
and affordable coverage.
By directing SBA to provide information only on ICHRAs,
while failing to disclose that accepting an ICHRA could make
them ineligible for Premium Tax Credit, is misleading and,
quite frankly, problematic. Omitting that information risks
steering small businesses away from coverage options that might
be more affordable and generous. That is why I strongly support
the amendment offered by my colleague, Dr. Morrison, which will
require SBA to include a notice explaining that individuals may
lose access to the premium tax credits in the marketplace. I
urge all my colleagues to support it. I yield back.
Chairman WILLIAMS. The gentlelady yields back. Is there
further debate on the amendment? All right. Seeing none, I
would like to recognize myself on this amendment.
I appreciate Dr. Morrison's amendment to this legislation.
However, I urge my colleagues to vote no. I yield back.
The question now occurs on the amendment offered by the
gentlelady from Minnesota.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the noes have it.
Ms. MORRISON. Mr. Chair, I would like a recorded vote,
please.
Chairman WILLIAMS. A Member requests a recorded vote. A
recorded vote has been requested, and a roll call vote is
ordered. Further proceedings on the amendment in the bill are
postponed. And are there any additional amendments to the
amendment in the nature of a substitute to H.R. 5498?
Seeing none that concludes the consideration of legislation
for today's markup.
Ms. VAN DUYNE. Excuse me, Mr. Chairman.
Chairman WILLIAMS. Yes, ma'am.
Ms. VAN DUYNE. I request a recorded vote.
Chairman WILLIAMS. A recorded vote is requested, and the
committee will stand in recess.
Okay, the committee will stand in recess subject to the
call of the Chair. Members, please return at 4:05 to resume
consideration of the bills and amendments on which roll call
votes were requested and postponed.
[Recess.]
Chairman WILLIAMS. All right, this committee will now come
to order, and we will resume consideration of the bills on
which roll call votes were requested and postponed. We will
begin with H.R. 4238. The question now occurs in order on H.R.
4238 as amended, reported favorably to the House.
The clerk will open the vote.
Are there any Members who have not voted or wish to change
their vote? If not, the clerk will close the vote and the clerk
will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 23 and
the noes are 0.
Chairman WILLIAMS. Motion agreed to, and H.R. 4238 is
amended and will be reported favorably to the House.
Question now occurs in order on H.R. 8879, reported
favorably to the House. The clerk will open the vote.
Are there any other Members who have not voted or wish to
change their vote? If not, the clerk will close the vote and
the clerk will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 23 and
the noes are 0.
Chairman WILLIAMS. Okay, the motion is agreed to, and H.R.
8879 will be reported favorably to the House.
Question now occurs in order to H.R. 1826 as amended,
reported favorably to the House. The clerk will open the vote.
Are there any Members who have not voted or wish to change
their vote? If not, the clerk will close the vote and the clerk
will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 23 and
the noes are zero.
Chairman WILLIAMS. The motion is agreed to and H.R. 826 as
amended will be reported favorably to the House.
The question now occurs in order in H.R. 8880, reported
favorably to the House. The clerk will open the vote.
[The vote was taken.]
Chairman WILLIAMS. Are there any of the Members who have
not voted or wish to change their vote? If not, the clerk will
close the vote. What? Are there any other Members
besides Alford who have not voted or would not change their
vote?
Okay, if not, the clerk will close the vote. The clerk will
report.
The CLERK. Mr. Chairman, on this vote, the ayes are 23 and
the noes are 0.
Chairman WILLIAMS. The motion agreed to, and H.R. 8880 will
be reported favorably to the House.
Question now occurs in ordering H.R. 8881 reported
favorably to the House. The clerk will open the vote.
Are there any other Members who have not voted or wish to
change their vote? If not, the clerk will close the vote, and
the clerk will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 23 and
the noes are 0.
Chairman WILLIAMS. The motion is agreed to, and H.R. 8881
will be reported favorably to the House.
The question now occurs on ordering H.R. 8882 reported
favorably to the House. The clerk will open the vote.
Are there any other Members who have not voted or wish to
change their vote? If not, the clerk will close the vote and
the clerk will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 23 and
the noes are 0.
Chairman WILLIAMS. The motion is agreed to and H.R. 882
will be reported favorably to the House.
Question now occurs on ordering H.R. 915 reported favorably
to the House. The clerk will open the vote.
Are there any other Members who have not voted or wish to
change their vote? If not, the clerk will close the vote and
the clerk will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 23 and
the noes are 0.
Chairman WILLIAMS. The motion is agreed to and H.R. 915
will be reported favorably to the House.
The question now occurs on ordering H.R. 2804 as amended,
reported favorably to the House. The clerk will open the vote.
Are there any other Members who have not voted or wish to
change their vote? If not, the clerk will close the vote. The
clerk will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 23 and
the noes are 0.
Chairman WILLIAMS. All right, the motion is agreed to, and
H.R. 2804, as amended, will be reported favorably to the House.
Okay, we will now take the proposed votes on H.R. 5498.
Okay, the question is on the adoption of the amendment to the
amendment in the nature of the substitute offered by Ms.
Scholten to H.R. 5498.
The clerk will report the vote. I'm sorry, will open the
vote.
Are there any of the Members who have not voted? It's too
late.
Ms. VELAZQUEZ. Wake up.
Chairman WILLIAMS. It's too late. Okay. Are there any other
Members besides Cisneros who have not voted or wish to change
their vote? If not, the clerk will close the vote and the clerk
will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 11 and
the noes are 12.
Chairman WILLIAMS. Okay, the amendment is not agreed to.
The question is on the adoption of the amendment to the
amendment in the nature of a substitute offered by Dr. Morrison
to H.R. 5498. The clerk will open the vote.
Are there any other Members who have not voted or wish to
change their vote? If not, the clerk will close the vote and
the clerk will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 11 and
the noes are 12.
Ms. VELAZQUEZ. Are you sure?
Chairman WILLIAMS. You want a recount? I mean, nobody's
voting over there on your side.
The amendment is not agreed to.
Okay, the question now occurs on the adoption of the
amendment in the nature of a substitute offered by
Representative Van Dyne to H.R. 5498.
All those in favor say aye.
Opposed? All those say nay.
In the opinion of the Chair, the ayes have it. The
amendment in the nature of a substitute to H.R. 5498 is
adopted.
Now the question is now on favorably reporting H.R. 5498 as
amended to the House.
All those in favor say aye.
All those opposed say no.
In the opinion of the Chair, the ayes have it, and H.R.
5498 as amended----
Ms. VAN DUYNE. Mr. Chair?
Chairman WILLIAMS. Yes.
Ms. VAN DUYNE. I'd like to request a recorded vote.
Chairman WILLIAMS. Okay, a recorded vote has been
requested. A roll call vote is ordered. The clerk will open the
vote.
Are there any other Members who have not voted or wish to
change their vote? If not, the clerk will close the vote and
the clerk will report.
[The vote was taken.]
The CLERK. Mr. Chairman, on this vote, the ayes are 13 and
the noes are 11.
Chairman WILLIAMS. All right, the motion is agreed to, and
H.R. 5498 as amended will be reported favorably to the House.
If there's no further business, this concludes today's
markup. Without objection, the committee staff has authorized
to make technical and conforming changes, and Members have two
business days to file additional supplemental dissenting
minority views. I want to thank all of you for being here
today. Without objection, we live in the greatest country in
the world. The committee stands adjourned.
[Whereupon, at 4:19 p.m., the committee was adjourned.]
A P P E N D I X
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