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No Federal Payments to Companies Controlled by Special Government Employees Act of 2025
To prohibit the awarding of contracts and grants to companies beneficially owned by special Government employees, and for other purposes.
Summary
The bill prohibits federal agencies from awarding contracts, grants, or cooperative agreements to companies that are beneficially owned (5 percent or more equity ownership) by special government employees, which are part-time federal workers. The restriction applies to any payments related to such contracts or agreements. The prohibition does not apply if the special government employee ceases to be a special government employee and does not become one again within one year of the bill's enactment.
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)
- Sen. Shaheen, Jeanne [D-NH] (D-NH)
1 cosponsor
Actions (2)
- Apr 9, 2025 Read twice and referred to the Committee on Homeland Security and Governmental Affairs. · senate
- Apr 9, 2025 Introduced in Senate
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.
Full text
IN THE SENATE OF THE UNITED STATES
April 9, 2025
Mrs. Shaheen introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs
A BILL
To prohibit the awarding of contracts and grants to companies beneficially owned by special Government employees, 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 “No Federal Payments to Companies Controlled by Special Government Employees Act of 2025”.
SEC. 2. PROHIBITION ON AWARDING OF CONTRACTS AND GRANTS TO COMPANIES BENEFICIALLY OWNED BY SPECIAL GOVERNMENT EMPLOYEES.
(a) In General.—An executive agency may not award a contract, grant, or cooperative agreement, or make any payment related to a contract, grant, or cooperative agreement, to a company of which any covered beneficial owner was a special Government employee on or after January 1, 2025, unless the individual who is such a beneficial owner of such company immediately ceases to be a special Government employee and is not a special Government employee at any time during the 365 days following the date of the enactment of this Act.
(b) Definitions.—In this section:
(1) Company.—The term “company” means any—
(A) corporation, company, limited liability company, limited partnership, business trust, or business association; or
(B) entity that is similar to an entity described in subparagraph (A).
(2) Covered beneficial owner.—The term “covered beneficial owner” means an individual who, with respect to a company—
(A) is a beneficial owner of the company, as determined pursuant to section 240.13d-3 of title 17, Code of Federal Regulations, as in effect on December 20, 2019; and
(B) owns, directly or indirectly, 5 percent or more of the equity securities of the company.
(3) Equity security.—The term “equity security” has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).
(4) Executive agency.—The term “executive agency” has the meaning given the term in section 133 of title 41, United States Code.
(5) Special government employee.—The term “special Government employee” has the meaning given the term in section 202(a) of title 18, United States Code. <all>
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