119-HR-2804 Journalist Public Summary

Public Summary: H.R. 2804 — Protecting Small Business Competitions Act of 2025

Headline summary: Make federal purchasing “small-business first” when at least two qualified small firms can bid at a fair price.

What it does: The bill writes the long‑standing “Rule of Two” into the Small Business Act. In plain terms, for federal buys above a set dollar threshold, contracting officers must reserve the contract—or a task/delivery order under a larger contract—for small businesses if they reasonably expect (1) at least two responsible small firms will submit offers and (2) the government can award at a fair‑market price.

• Who’s for it: The sponsor, Rep. Nydia Velázquez (D‑NY), and members of both parties on the House Small Business Committee—evidenced by a 23–0 committee vote. Small‑business advocates favor clearer, more predictable access to federal work.
• Who’s against it: No formal opposition showed up in the committee vote, but some large contractors and a subset of acquisition officials may worry about reduced flexibility or fewer open competitions when only small businesses can bid.

Why it matters: Small firms could see more consistent opportunities to compete for federal contracts and orders, which can support local jobs and diversify the supplier base. Agencies may need to plan market research more carefully to determine when the conditions for a small‑business set‑aside are met.

What’s next: On May 20, 2026, the House Small Business Committee ordered the bill to be reported in the nature of a substitute by a 23–0 vote. Next, the full House can consider it; if it passes, it moves to the Senate and then to the President.