H.R.2989 - Time to Choose Act of 2025 (119th Congress)
Summary
H.R. 2989, the "Time to Choose Act of 2025," aims to prevent conflicts of interest by prohibiting federal contracts with consulting firms that simultaneously work for both the U.S. government and certain foreign entities, particularly those seen as adversaries like China and Russia. The bill requires consulting firms to certify they do not hold contracts with covered foreign entities before receiving a federal contract. Waivers are possible under specific national security circumstances, subject to limitations and reporting requirements.
The Act mandates the Federal Acquisition Regulatory Council to amend regulations within a year to enforce these prohibitions. Penalties for providing false information include contract termination and potential debarment from future federal contracts, as well as potential False Claims Act liabilities.
Ultimately, the bill seeks to safeguard U.S. national and economic security by ensuring that consulting firms working for the government are not simultaneously aiding foreign entities that may pose a threat.
Expected Effects
The primary effect of this bill would be to force consulting firms to choose between working for the U.S. government or for specified foreign entities. This could lead to a restructuring of the consulting industry, with some firms focusing solely on U.S. government contracts and others on international clients.
Federal agencies may face challenges in finding qualified consultants, especially in specialized fields, potentially increasing costs or delaying projects. The waiver process, while intended to provide flexibility, could introduce bureaucratic hurdles and potential for political influence.
Potential Benefits
- Strengthens national security by reducing potential conflicts of interest in federal contracting.
- Protects U.S. economic interests by preventing consulting firms from aiding foreign entities that may undermine American competitiveness.
- Increases transparency in federal contracting by requiring disclosure of relationships with covered foreign entities.
- May encourage consulting firms to prioritize U.S. interests, fostering greater loyalty and commitment.
- Could lead to a more secure and reliable consulting base for the U.S. government.
Most Benefited Areas:
Potential Disadvantages
- Limits the pool of eligible consulting firms for federal contracts, potentially increasing costs and reducing expertise.
- The waiver process could be cumbersome and subject to political influence, creating inefficiencies and potential for abuse.
- May strain relationships with international partners if consulting firms are forced to terminate contracts with entities in those countries.
- Could lead to retaliatory measures from foreign governments, impacting U.S. firms operating abroad.
- The definition of "covered foreign entity" may be overly broad, capturing entities that do not pose a significant threat to U.S. interests.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the U.S. Constitution, particularly Article I, Section 8, which grants Congress the power to provide for the common defense and general welfare of the United States. By seeking to prevent conflicts of interest in federal contracting, the bill aims to protect national security and economic interests, which fall under these enumerated powers.
The bill does not appear to infringe upon any specific constitutional rights or liberties. While it may impact the business operations of consulting firms, it does not violate freedom of speech, religion, or other fundamental rights. The waiver provisions provide a mechanism for addressing potential unintended consequences and ensuring flexibility in exceptional circumstances.
However, the implementation of the bill should be carefully monitored to ensure that it does not unduly burden interstate commerce or discriminate against foreign entities in a manner that violates international trade agreements.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).