Congress removes geographic limits on federal small-business construction work
H.R. 3485 — To amend the Small Business Act to eliminate certain requirements relating to the award of construction subcontracts within the county or State of performance. · Filed by Nicholas Begich (R-AK) · 6 cosponsors · Introduced May 19, 2025 · Referred to committee
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What it does
This bill repeals a Small Business Act requirement that construction subcontracts awarded under the 8(a) program must be performed within the same county or state where the prime contract is being performed. The effect is to allow 8(a) subcontractors to perform work anywhere in the country, removing a geographic restriction on where federally supported small-business construction work can be done.
Why we flagged it
The bill removes a geographic performance requirement from the SBA 8(a) program, expanding the geographic scope within which federally supported small-business construction subcontracts can be awarded and performed. This is a straightforward deregulatory amendment to a federal small-business contracting program.
What the text implies
- Removal of the geographic tether may concentrate 8(a) subcontracting work in lower-cost regions, potentially reducing the economic multiplier effect of federal construction spending in the county or state where the prime contract is performed.
- The change may shift competitive advantage toward larger, more geographically dispersed 8(a) firms over smaller, locally rooted ones that previously benefited from the geographic preference.
- Federal agencies may face pressure to award subcontracts to the lowest-cost bidder nationwide rather than supporting local small-business ecosystems, altering the policy calculus of the 8(a) program.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Removal of the geographic restriction may reduce costs for federal construction projects by allowing broader competition and lower-cost subcontractors nationwide, benefiting taxpayers. However, it may also reduce opportunities for small businesses in the county or state where the work is performed, potentially harming local economic development and the original policy intent of keeping federal construction spending within the region of performance.
Who stands to gain
- 8(a) small-business contractors with national reach or lower-cost operations outside the county/stat
- federal agencies (potential cost savings on construction projects)
Named in the bill
Small Business Administration (SBA), 8(a) Business Development Program, Small Business Act, U.S. House Committee on Small Business
Where it stands
6 cosponsors: 3 Democrats, 3 Republicans.
- May 19, 2025 — Introduced · Congress.gov: “Introduced in House”
- May 19, 2025 — Referred to House Committee on Small Business · Congress.gov: “Referred to the House Committee on Small Business”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Money around this bill
2 lobbying clients named this bill on 3 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $221,000 in lobbying spend. A filing names 2 bills on average, so that figure is what each filing reported, not a share belonging to this bill.
More lobbying clients named this bill than 41% of bills with at least one filing.
Nicholas Begich, the sponsor, reported $1,087,127 in PAC receipts in the 2026 cycle.
- Native American Contractors Association — $215,000 on 2 filings
- Aleut Community of St. Paul Island — $6,000 on 1 filing
Lobbying Disclosure Act filings through Jul 21, 2026. A filing shows who paid to lobby on a bill it names, not what changed.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,003 characters) on Jun 8, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
Money — Senate Lobbying Disclosure Act filings whose specific-issue field names this bill for quarters ending Dec 2025 to Jun 2026. A filing's amount is reported whole beside the median number of bills a filing names; it is never divided across them. PAC receipts are FEC-reported contributions to the sponsor's candidate committee in the 2026 cycle.
As of — lobbying records through Jul 21, 2026 · page rendered 2026-10-20.
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