SBA ordered to disclose AI use—but compliance costs may burden small firms
H.R. 8664 — SBA AI Adoption Reporting Act of 2026 · Filed by Hillary Scholten (D-MI) · 1 cosponsor · Introduced May 4, 2026 · Referred to committee
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What it does
This bill directs the Small Business Administration to implement recommendations from a Government Accountability Office report on AI use in small business contracting and to establish transparent policies for how the SBA itself uses AI. The SBA must submit an implementation plan within 45 days detailing roles, responsibilities, and timelines for disclosing AI use and decision-making, aligned with federal AI governance standards set by the Office of Management and Budget.
Why we flagged it
The bill requires the SBA to implement GAO recommendations on AI adoption disclosure and establish policies for transparent AI use reporting. It is fundamentally a transparency and governance measure, not a substantive AI regulation or industry carve-out.
What the text implies
- Mandates SBA to adopt OMB M–25–21 guidance, which may impose compliance costs on federal contractors and small businesses seeking SBA support, potentially creating a de facto regulatory burden on SMBs without explicit statutory authority.
- References GAO report (GAO–26–107828) by specific number, effectively delegating legislative detail to an external report not included in the bill text, making full legislative intent opaque to public review.
The full analysis lists 4 implications of this text.
Who stands to gain
enterprise software and IT services firms (compliance/reporting tools); AI governance and audit vendors; large federal contractors with existing compliance infrastructure