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HR 2804
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Protecting Small Business Competitions Act of 2026

H. R. 2804 To amend the Small Business Act to codify the Rule of Two, and for other purposes.

Introduced Apr 9, 2025

Latest action (Jul 2, 2026) Placed on the Union Calendar, Calendar No. 624.

Referred to
Small Business Committee
Policy area
Commerce
Issues
Economy & Taxes
Legislative subjects (3)
Inflation and pricesPublic contracts and procurementSmall business

Summary
  • Codifies the "Rule of Two" into the Small Business Act, making it a legal requirement rather than just agency policy.
  • Requires federal contracts for goods or services above the simplified acquisition threshold to be reserved for small business concerns when contracting officers expect competitive offers from at least two small businesses at fair market price.
  • Applies the Rule of Two to contracts but excludes delivery orders and task orders.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)
4 cosponsors

Actions (6)
  1. Jul 2, 2026 Placed on the Union Calendar, Calendar No. 624. · house
  2. Jul 2, 2026 Reported (Amended) by the Committee on Small Business. H. Rept. 119-719. · house
  3. May 20, 2026 Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 23 - 0. · house
  4. May 20, 2026 Committee Consideration and Mark-up Session Held · house
  5. Apr 9, 2025 Referred to the House Committee on Small Business. · house
  6. Apr 9, 2025 Introduced in House

More bills on these subjects (8)

Other bills that carry the most legislative subjects in common with this one (topical discovery — distinct from the procedural related bills above).

  • S 2296 — National Defense Authorization Act for Fiscal Year 2026 (shares 3 subjects)
  • S 2656 — Protecting Small Business Competitions Act of 2025 (shares 3 subjects)
  • HR 191 — Inflation Reduction Act of 2025 (shares 3 subjects)
  • HR 4123 — FIT Procurement Act (shares 2 subjects)
  • HR 8879 — Oversight and Transparency for Small Business Certifications Act of 2026 (shares 2 subjects)
  • HR 6599 — Leasing and Infrastructure Act of 2025 (shares 2 subjects)
  • HR 7314 — Advancing Commonsense Policies Act (shares 2 subjects)
  • HR 2066 — Investing in All of America Act of 2025 (shares 2 subjects)

Similar bills (6)

Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.

  • S 2656 — Protecting Small Business Competitions Act of 2025 · Introduced Aug 1, 2025 · Cong. 119 80%
  • HR 2558 — SAFETY Act of 2025 · Introduced Apr 1, 2025 · Cong. 119 67%
  • HR 3556 — To amend the Small Business Act to modify application deadlines and communication requirements for certain disaster assistance, and for other purposes. · Introduced May 21, 2025 · Cong. 119 65%
  • HR 535 — Working Small Business Regulatory Relief Act · Introduced Jan 14, 2009 · Cong. 111 65%
  • HR 421 — Small Business Regulatory Flexibility Improvements Act · Introduced Jun 10, 2025 · Cong. 119 65%
  • HR 110 — Small Business Prosperity Act of 2025 · Introduced Jan 3, 2025 · Cong. 119 65%

Text versions (2)
  • Reported in House · Jul 2, 2026
  • Introduced in House · Apr 9, 2025

Committee action

What happened to this bill in committee — the meetings where it was considered and every recorded vote taken on it.

Meetings where this bill was on the agenda

Full text

IN THE HOUSE OF REPRESENTATIVES

April 9, 2025

Ms. Velazquez introduced the following bill; which was referred to the Committee on Small Business

July 2, 2026

Additional sponsors: Mr. Cisneros, Ms. Davids of Kansas, Mr. Case, and Mr. Williams of Texas

July 2, 2026

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on April 9, 2025]

A BILL

To amend the Small Business Act to codify the Rule of Two, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Protecting Small Business Competitions Act of 2026”.

SEC. 2. CODIFICATION OF THE RULE OF TWO.

Section 15(j) of the Small Business Act (15 U.S.C. 644(j)) is amended by adding at the end the following new paragraph:

“(4) Rule of two.—

“(A) In general.—Each covered contract for goods or services that has an anticipated value greater than the simplified acquisition threshold shall be reserved for small business concerns when the contracting officer reasonably expects—

“(i) to obtain offers from two or more responsible small business concerns; and

“(ii) to award such contract at a fair market price.

“(B) Covered contract defined.—In this paragraph, the term ‘covered contract’ does not include a delivery order or a task order.”. Union Calendar No. 624

119th CONGRESS

2d Session

H. R. 2804

[Report No. 119-719]

A BILL

To amend the Small Business Act to codify the Rule of Two, and for other purposes.

July 2, 2026

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

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