S.1365 - No Federal Payments to Companies Controlled by Special Government Employees Act of 2025 (119th Congress)
Summary
S.1365, the "No Federal Payments to Companies Controlled by Special Government Employees Act of 2025," aims to prevent conflicts of interest by prohibiting federal agencies from awarding contracts or grants to companies beneficially owned by special government employees. The bill defines 'special Government employee' by referencing existing US Code and sets a threshold of 5% ownership for determining beneficial ownership. It includes a provision that allows companies to receive federal payments if the special government employee ceases their employment and does not return to such a role within 365 days of the Act's enactment.
Expected Effects
The primary effect of this bill would be to limit the potential for government employees to personally benefit from their positions through federal contracts and grants. This could lead to increased public trust in government spending and a more level playing field for companies competing for federal funds. It may also reduce the pool of available experts willing to serve as special government employees.
Potential Benefits
- Reduces potential conflicts of interest in government contracting.
- Promotes fairness and transparency in the awarding of federal contracts and grants.
- May increase public trust in government operations.
- Encourages ethical conduct among special government employees.
- Potentially saves taxpayer money by preventing biased contract awards.
Potential Disadvantages
- May discourage qualified individuals from serving as special government employees due to financial restrictions.
- Could limit the government's access to specialized expertise from the private sector.
- May increase administrative burden to ensure compliance with the Act.
- Potential for unintended consequences if the definition of 'beneficial owner' is too broad.
- Possible delays in awarding contracts and grants due to compliance checks.
Constitutional Alignment
The bill appears to align with the principles of good governance and preventing corruption, which are implicit in the Constitution's aim to 'establish Justice' and 'promote the general Welfare.' While the Constitution does not explicitly address conflicts of interest in this manner, the bill supports the overall intent of a fair and impartial government. Article I, Section 9, Clause 8, which prohibits the granting of titles of nobility, shares a similar spirit of preventing undue influence and special privileges.
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).