[House Report 119-110]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-110
======================================================================
SAVE SBA FROM SANCTUARY CITIES ACT OF 2025
_______
May 21, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Williams of Texas, from the Committee on Small Business, submitted
the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 2931]
The Committee on Small Business, to whom was referred the
bill (H.R. 2931) to direct the Administrator of the Small
Business Administration to relocate certain offices of the
Small Business Administration in sanctuary jurisdictions, and
for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
I. Purpose and Bill Summary........................................ 3
II. Need for Legislation............................................ 3
III. Hearings........................................................ 3
IV. Committee Consideration......................................... 3
V. Committee Votes................................................. 4
VI. Section-by-Section of H.R. 2931................................. 8
VII. Congressional Budget Office Cost Estimate....................... 8
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure 8
IX. Oversight Findings & Recommendations............................ 9
X. Performance Goals and Objectives................................ 9
XI. Statement of Duplication of Federal Programs.................... 9
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits........................................................ 9
XIII. Federal Mandates Statement...................................... 9
XIV. Federal Advisory Committee Statement............................ 9
XV. Applicability to Legislative Branch............................. 9
XVI. Statement of Constitutional Authority........................... 9
XVII. Minority Views................................................. 10
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Save SBA from Sanctuary Cities Act of
2025''.
SEC. 2. RELOCATION OF CERTAIN OFFICES IN SANCTUARY JURISDICTIONS.
(a) In General.--The Administrator shall relocate each covered office
located in a sanctuary jurisdiction in accordance with this section.
(b) Determination Required.--Subsection (a) shall apply with respect
to a covered office only if, prior to ordering the relocation of such
covered office under such subsection, the Administrator makes a
determination that such covered office is located in a sanctuary
jurisdiction and makes such determination publicly available.
(c) Relocation Requirement.--When relocating a covered office under
this section, the Administrator shall relocate such covered office to a
location that--
(1) is not in a sanctuary jurisdiction; and
(2) if the State in which such covered office is located
prior to such relocation is not a sanctuary jurisdiction, is in
such State.
(d) Relocation Deadline.--
(1) Deadline.--Not later 120 days after the Administrator
makes publicly available a determination under subsection (b)
with respect to a covered office, the Administrator shall
relocate such covered office in accordance with subsection (c).
(2) Noncompliance.--
(A) In general.--If a covered office described in
paragraph (1) is not relocated in accordance with
subsection (c) prior to the expiration of the 120-day
period applicable to such relocation under such
paragraph--
(i) not later 5 days after the expiration of
such 120-day period, the head of such covered
office shall submit to the Administrator a
written explanation of why such covered office
was not relocated prior to expiration of such
120-day period; and
(ii) during the period beginning on the day
after expiration of such 120-day period and
ending on the date on which such covered office
is relocated to a location that is not in a
sanctuary jurisdiction--
(I) such covered office shall cease
operations; and
(II) each employee of the
Administration whose duty station was
at such covered office shall be
assigned to a duty station at another
covered office that is located in the
same State and not in a sanctuary
jurisdiction or, if no other covered
office is located in the same State and
not in a sanctuary jurisdiction, any
other covered office that is not
located in a sanctuary jurisdiction.
(B) Removal.--The Administrator shall immediately
remove the head of a covered office required to submit
a written explanation under subparagraph (A)(i) if--
(i) such head does not submit such a written
explanation in accordance with such
subparagraph; or
(ii) the Administrator determines that the
reasons provided in the written explanation
submitted by such head under such subparagraph
for the relocation of such covered office not
being completed prior to the expiration of the
120-day period described in paragraph (1) with
respect to such covered office are
insufficient.
(e) New Office Limitation.--The Administrator may not establish a
covered office in sanctuary jurisdiction.
(f) Definitions.--In this section:
(1) Administration.--The term ``Administration'' means the
Small Business Administration.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Administration.
(3) Covered office.--The term ``covered office'' means a
regional, district, or local office the Administration, other
than the headquarters of the Administration, or any other
component of the Administration fully funded by funds
appropriated by Congress.
(4) Sanctuary jurisdiction.--
(A) In general.--Except as provided by subparagraph
(B), the term ``sanctuary jurisdiction'' means any
State or political subdivision of a State that has in
effect a statute, ordinance, policy, or practice that
prohibits or restricts any government entity or
official from--
(i) sending, receiving, maintaining, or
exchanging with any Federal, State, or local
government entity information regarding the
citizenship or immigration status (lawful or
unlawful) of any individual; or
(ii) complying with a request lawfully made
by the Department of Homeland Security under
section 236 or 287 of the Immigration and
Nationality Act (8 U.S.C. 1226 and 1357) to
comply with a detainer for, or notify about the
release of, an individual.
(B) Exception.--A State or political subdivision of a
State shall not be deemed a sanctuary jurisdiction
based solely on its having a policy whereby its
officials will not share information regarding, or
comply with a request made by the Department of
Homeland Security under section 236 or 287 of the
Immigration and Nationality Act (8 U.S.C. 1226 and
1357) to comply with a detainer regarding, an
individual who comes forward as a victim or a witness
to a criminal offense.
I. PURPOSE AND BILL SUMMARY
On April 17, 2025, Rep. Finstad introduced H.R. 2931, the
Save SBA from Sanctuary Cities Act. H.R. 2931 requires the
Small Business Administration (SBA) to relocate SBA offices out
of sanctuary jurisdictions and into jurisdictions which do not
limit their cooperation with federal agencies charged with
immigration enforcement.
II. NEED FOR LEGISLATION
Under the Biden-Harris Administration, the United States
suffered from a self-inflicted border crisis that welcomed a
rise in sanctuary jurisdictions throughout the country.
Sanctuary jurisdictions are jurisdictions throughout the United
States that have implemented policies to limit immigration
enforcement. The SBA has offices across the country, some of
which are in sanctuary jurisdictions. This bill is necessary to
ensure that SBA employees do not face public safety threats due
to the relaxed policies in these cities.
This bill also codifies actions ordered with respect to
President Trump's Executive Order (EO) 14218 ``Ending Taxpayer
Subsidization of Open Borders'' and EO 14287 ``Protecting
American Communities from Criminal Aliens.''\1\ Additionally,
on March 6, 2025, SBA Administrator Loeffler announced that the
SBA would relocate SBA offices out of sanctuary
jurisdictions.\2\ This bill codifies EO 14287, EO 14218, and
Administrator Loeffler's implementation of the orders.
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\1\Exec. Order 14,218, 90 Fed. Reg. 10581 (2025); Exec. Order
14,287, 90 Fed. Reg. 18761 (2025).
\2\News Release, U.S. Small Bus. Admin., Administrator Loeffler
Announces SBA Reforms to Put American Citizens First (Mar. 6, 2025),
https://www.sba.gov/article/2025/03/06/administrator-loeffler-
announces-sba-reforms-put-american-citizens-first.
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III. HEARINGS
On February 5, 2025, the Committee on Small Business held a
hearing examining matters related to H.R. 2931 entitled ``Hope
on the Horizon: Prioritizing Small Business Growth in the 119th
Congress.''
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on April 30, 2025, and ordered H.R. 2931,
as amended, to be reported favorably to the House of
Representatives by a roll call vote of 15 ayes to 11 nos.
During the markup three amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto. The Committee voted to favorably report H.R. 2931 as
amended, to the House of Representatives at 6:14 PM.
The Committee considered the following amendments to H.R.
2931:
Representative Finstad offered an amendment
in the nature of a substitute. This amendment was
adopted by voice vote.
Representative Cisneros offered an amendment
to the amendment in the nature of a substitute. The
vote on the amendment failed 11 ayes to 15 nos.
Representative Velazquez offered an
amendment to the amendment in the nature of a
substitute. The vote on the amendment failed 11 ayes to
15 nos.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
VI. SECTION-BY-SECTION OF H.R. 2931
Section 1--Short title
This section states that the Act may be cited as the ``Save
SBA from Sanctuary Cities Act.''
Section 2--Relocation of certain offices in sanctuary jurisdictions
This section requires SBA to relocate covered SBA offices
in sanctuary jurisdictions per numerous conditions.
Within 120 days after the Administrator makes a public
determination that an SBA office is located in a sanctuary
jurisdiction, the SBA office must be relocated. If a covered
SBA office fails to relocate within the 120-day period, the
office shall cease operations until it is relocated, and SBA
employees assigned to such office shall be reassigned to an
office located in a non-sanctuary jurisdiction.
Within five days after the expiration of the 120-day
relocation period, heads of offices determined to be in
sanctuary jurisdictions must submit a written explanation to
the Administrator as to why such office was not relocated
within the 120-day relocation period. The Administrator is then
required to immediately remove heads of offices if such
explanation is not submitted within five days, or in the case
that such explanation is determined to be insufficient.
Additionally, this section prohibits the SBA from
establishing a covered office in a sanctuary jurisdiction and
lists definitions for several terms used throughout the bill,
including ``covered office'' and ``sanctuary jurisdiction.''
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to 3(c)(3) of rule XIII of the Rules of the House
of Representatives, the Committee adopts as its own the cost
estimate prepared by the Director of the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974. The Committee has requested but not received from the
Director of the Congressional Budget Office a cost estimate for
the Committee's provisions.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a)(I) of the
Congressional Budget Act of 1974, the Committee provides the
following opinion and estimate with respect to new budget
authority, entitlement authority, and tax expenditures. While
the Committee has not received an estimate of new budget
authority contained in the cost estimate prepared by the
Director of the Congressional Budget Office pursuant to Sec.
402 of the Congressional Budget Act of 1974, the Committee does
not believe that there will be any additional costs
attributable to this legislation. H.R. 2931 does not direct new
spending, but instead reallocates funding independently
authorized and appropriated.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the oversight findings and recommendations of the Committee on
Small Business with respect to the subject matter contained in
H.R. 2931 are incorporated into the descriptive portions of
this report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, there are no
specific performance goals and objectives of H.R. 2931
applicable.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, no provision of H.R. 2931 is known to
be duplicative of another Federal program, including any
program that was included in a report to Congress pursuant to
section 21 of Public Law 111-139 or the most recent Catalog of
Federal Domestic Assistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF
BENEFITS
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee finds that the bill
does not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits as defined in clause 9(e),
9(f), or 9(g) of rule XXI of the Rules of the House of
Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of Rule XII of the Rules of the House,
the Committee finds that the authority for this legislation in
Art. I, Sec. 8, cl.1 of the Constitution of the United States.
XVII. MINORITY VIEWS
On March 6, 2025, SBA Administrator Kelly Loeffler
announced that ``SBA will relocate six of its regional offices
currently located in municipalities that do not comply with
U.S. Immigration and Customs Enforcement (ICE). Over the coming
months, the Atlanta, Boston, Chicago, Denver, New York City,
and Seattle regional offices will be moved to less costly, more
accessible locations that better serve the small business
community and comply with federal immigration law.''\1\
---------------------------------------------------------------------------
\1\Press Release, U.S. SMALL BUS. ADMIN., Administrator Loeffler
Announces SBA Reforms to Put American Citizens First (Mar. 6, 2025),
https://www.sba.gov/article/2025/03/06/administrator-loeffler-
announces-sba-reforms-put-american-citizens-first.
---------------------------------------------------------------------------
This announcement came one day after the Chairman of the
House Oversight Committee hauled in the mayors from four of the
six above-mentioned cities to testify about their policies
towards immigrants. In their testimony, the mayors made clear
that they are in full compliance with federal law, and they do
not obstruct ICE from carrying out its responsibilities.\2\
---------------------------------------------------------------------------
\2\A Hearing with Sanctuary City Mayors: Hearing before the H.
COMM. ON OVERSIGHT AND GOV'T REFORM, 119th Cong. (Mar. 5, 2025).
---------------------------------------------------------------------------
Twenty-four House Democrats, led by the Ranking Member,
sent a letter to Administrator Loeffler on March 20, 2025\3\
raising serious concerns over the abrupt decision to relocate
six SBA regional offices. At this time, the Administrator has
not responded to the letter nor has she set up a briefing to
brief Members, ignoring the Small Business Committee Members
who have direct oversight over all matters and related to the
SBA.
---------------------------------------------------------------------------
\3\Letter from the H. COMM. ON SMALL BUS. to the U.S. SMALL BUS.
ADMIN. (Mar. 20, 2025), https://democrats-smallbusiness.house.gov/
uploadedfiles/letter_to_sba_-regional_office_
relocations_final.pdf.
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Specifically, the concerns were:
The move, which punitively targets six major
cities with high concentrations of Democratic
residents, is a blatant weaponization of SBA for
political gain;
This decision will unduly harm millions of
small businesses across the country that have been
suffering from the chaotic, confusing, and
unpredictable economic policies of the Trump
Administration;
The SBA has no clear plans to relocate the
offices or prevent any disruption to the small business
owners who rely upon them, and appears not to have
followed leading practices of effective agency
reorganizations identified by the Government
Accountability Office; and
Congressional and other stakeholders were
not consulted or informed of this decision or any other
proposed agency reforms.
Committee Democrats offered two amendments to the
legislation. First, Rep. Gil Cisneros (D-CA) offered an
amendment that would prohibit the implementation of the bill if
the costs are greater than zero. Mr. Cisneros made the point
that the SBA is not the Department of Homeland Security or
Immigration and Customs Enforcement (ICE) and should be focused
on supporting small businesses, regardless of party
affiliation. The Ranking Member added that the costs to the
taxpayer should be taken into consideration when making these
decisions. Republicans defeated the amendment.
Mr. McGarvey offered an amendment on behalf of Rep. Nydia
Velazquez (D-NY) because she had to be at a mark-up at the
Financial Services Committee. The amendment would prohibit the
implementation of the Act until the Administrator submits to
the House and Senate Small Business Committees a report
providing specific information on the relocations. There has
been limited stakeholder involvement in this decision and there
appears to be no plan in place or analysis conducted around the
relocation of the offices. Despite multiple requests for
information, SBA has not provided any details. Republicans
defeated the amendment on the grounds that it would delay the
implementation of the process. Committee Democrats disagree and
made clear that unilaterally, pushing through proposals to
relocate long-standing regional offices without consulting
Congress is unacceptable. Disregarding congressional oversight
undermines the principles of accountability and transparency.
Republicans opposed the amendment that would bring transparency
to the process.
Committee Democrats opposed the measure because (1) the
relocation is a waste of taxpayers' resources, (2) there has
been no information about the reorganization plan despite
repeated requests to SBA for information, and (3) the
Administrator is publicly stating she is going to relocate the
Denver office, but privately she is asking employees to
relocate there.
Nydia M. Velazquez,
Ranking Member.
[all]