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.
The full analysis lists 3 implications of this text.
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)