S. 4390

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4390 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
2d Session
S. 4390

To end preferences for disadvantaged individuals and businesses in 
Government contracts, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

April 27, 2026

Mr. Lee introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

A BILL

To end preferences for disadvantaged individuals and businesses in 
Government contracts, 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 ``Ending Discrimination in Government 
Contracting Act''.

SEC. 2. ENDING FEDERAL CONTRACTING PREFERENCES FOR SMALL BUSINESSES 
OWNED AND CONTROLLED BY SOCIALLY AND ECONOMICALLY 
DISADVANTAGED INDIVIDUALS AND SMALL BUSINESSES OWNED AND 
CONTROLLED BY WOMEN.

(a) Small Business Act.--The Small Business Act (15 U.S.C. 631 et 
seq.) is amended--
(1) in section 2 (15 U.S.C. 631)--
(A) by repealing subsection (f); and
(B) in subsection (h)(1)(H), by striking ``while 
not adversely affecting the rights of socially and 
economically disadvantaged individuals'';
(2) in section 7 (15 U.S.C. 636)--
(A) in subsection (a)--
(i) in paragraph (15)(E)--
(I) in clause (i), by striking 
``including the number of loans'' and 
all that follows through the end of the 
clause and inserting the following: 
``including the number of loans made to 
cooperatives;''; and
(II) in clause (ii), by striking 
``including the number of financings'' 
and all that follows through the end of 
the clause and inserting the following: 
``including the number of financings 
made to cooperatives; and''; and
(ii) in paragraph (36)(P)(iv), by striking 
``small business concerns owned and controlled 
by socially and economically disadvantaged 
individuals (as defined in section 
8(d)(3)(C)),''; and
(B) in subsection (j)--
(i) in paragraph (11)(I)(iii), by striking 
``and a distribution of concerns across all 
industry'' and all that follows through ``has 
been limited'' in the second sentence; and
(ii) in paragraph (16)(B)(iii), by striking 
``owned and controlled by other than socially 
and economically disadvantaged individuals'';
(3) in section 8 (15 U.S.C. 637)--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) in subparagraph (A), by 
inserting ``and'' after the semicolon 
at the end;
(II) by striking subparagraphs (B) 
and (C); and
(III) by redesignating subparagraph 
(D) as subparagraph (B);
(ii) by repealing paragraphs (4) through 
(8);
(iii) in paragraph (9)(B)--
(I) by striking clause (i); and
(II) by redesignating clauses (ii), 
(iii), and (iv) as clauses (i), (ii), 
and (iii), respectively;
(iv) in paragraph (10), in the second 
sentence, by striking ``and from small 
disadvantaged business concerns in industry 
categories that have not substantially 
participated in the award of contracts let 
under the authority of this subsection''; and
(v) in paragraph (12)--
(I) in subparagraph (A), by 
striking ``and Disadvantaged'';
(II) in subparagraph (C), in the 
first sentence, by striking ``, 
including those owned and controlled by 
socially and economically disadvantaged 
individuals,''; and
(III) in subparagraph (D)(i), by 
striking ``and Disadvantaged'';
(B) in subsection (d)--
(i) in paragraph (1), by striking 
``qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business concerns owned 
and controlled by women'' each place that term 
appears and inserting ``and qualified HUBZone 
small business concerns'';
(ii) in paragraph (3)--
(I) in subparagraph (A), by 
striking ``qualified HUBZone small 
business concerns, small business 
concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business 
concerns owned and controlled by 
women'' each place that term appears 
and inserting ``and qualified HUBZone 
small business concerns'';
(II) by amending subparagraph (C) 
to read as follows:
``(C) As used in this contract, the term `small 
business concern' shall mean a small business as 
defined pursuant to section 3 of the Small Business Act 
and relevant regulations promulgated pursuant 
thereto.''; and
(III) in subparagraph (F), by 
striking ``small business concern owned 
and controlled by service-disabled 
veterans, a small business concern 
owned and controlled by socially and 
economically disadvantaged individuals, 
or a small business concern owned and 
controlled by women'' and inserting 
``or a small business concern owned and 
controlled by service-disabled 
veterans'';
(iii) in paragraph (4)--
(I) in subparagraph (D), by 
striking ``small business concerns 
owned and controlled by service-
disabled veterans, small business 
concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business 
concerns owned and controlled by 
women'' and inserting ``and small 
business concerns owned and controlled 
by service-disabled veterans''; and
(II) in subparagraph (E), by 
striking ``qualified HUBZone small 
business concerns, small business 
concerns owned and controlled by the 
socially and economically disadvantaged 
individuals as defined in paragraph (3) 
of this subsection and for small 
business concerns owned and controlled 
by women'' and inserting ``and 
qualified HUBZone small business 
concerns'';
(iv) in paragraph (6), by striking 
``qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business concerns owned 
and controlled by women'' each place that term 
appears and inserting ``and qualified HUBZone 
small business concerns'';
(v) in paragraph (11)(B), by striking 
``qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business concerns owned 
and controlled by women'' and inserting ``and 
qualified HUBZone small business concerns''; 
and
(vi) in paragraph (13)(E)(i), by striking 
``and Disadvantaged'';
(C) by striking subsection (m); and
(D) by redesignating subsection (n) as subsection 
(m);
(4) in section 9 (15 U.S.C. 638)--
(A) in subsection (b)(7), by repealing subparagraph 
(C); and
(B) in subsection (j)(2), by repealing subparagraph 
(F);
(5) in section 15 (15 U.S.C. 644)--
(A) in subsection (e)(1)(B), by striking ``and 
Disadvantaged'';
(B) in subsection (g)--
(i) in paragraph (1)(A)--
(I) in the matter preceding clause 
(i), by striking ``qualified HUBZone 
small business concerns, small business 
concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business 
concerns owned and controlled by 
women'' and inserting ``and qualified 
HUBZone small business concerns''; and
(II) by striking clauses (iv) and 
(v);
(ii) in paragraph (2)--
(I) in subparagraph (A), by 
striking ``by qualified HUBZone small 
business concerns, by small business 
concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and by small business 
concerns owned and controlled by 
women'' and inserting ``and by 
qualified HUBZone small business 
concerns'';
(II) in subparagraph (B), by 
striking ``qualified HUBZone small 
business concerns, small business 
concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business 
concerns owned and controlled by 
women'' and inserting ``and qualified 
HUBZone small business concerns'';
(III) in subparagraph (D), by 
striking ``, qualified HUBZone small 
business concerns, small business 
concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business 
concerns owned and controlled by 
women'' and inserting ``and qualified 
HUBZone small business concerns''; and
(IV) in subparagraph (F)(ii), by 
striking ``and Disadvantaged''; and
(iii) in paragraph (3), by striking 
``qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business concerns owned 
and controlled by women'' and inserting ``and 
qualified HUBZone small business concerns'';
(C) in subsection (h)--
(i) in paragraph (1)(A), by striking 
``qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business concerns owned 
and controlled by women'' and inserting ``and 
qualified HUBZone small business concerns'';
(ii) in paragraph (2)--
(I) in subparagraph (E)--
(aa) in clause (i)(VI), by 
striking ``small business 
concerns owned and controlled 
by socially and economically 
disadvantaged individuals, 
small business concerns owned 
and controlled by women,'';
(bb) in clause (ii)(VII), 
by striking ``small business 
concerns owned and controlled 
by socially and economically 
disadvantaged individuals, 
small business concerns owned 
and controlled by women,'';
(cc) in clause (iii)(VIII), 
by striking ``small business 
concerns owned and controlled 
by socially and economically 
disadvantaged individuals, 
small business concerns owned 
and controlled by women,'';
(dd) by striking clause 
(iv);
(ee) by redesignating 
clauses (v), (vi), and (vii) as 
clauses (iv), (v), and (vi), 
respectively;
(ff) in clause (iv), as so 
redesignated--

(AA) by striking 
subclause (IV); and

(BB) by 
redesignating 
subclauses (V) and (VI) 
as subclauses (IV) and 
(V), respectively;

(gg) in clause (v), as so 
redesignated--

(AA) by striking 
subclause (IV); and

(BB) by 
redesignating 
subclauses (V) and (VI) 
as subclauses (IV) and 
(V), respectively;

(hh) in clause (vi), as so 
redesignated--

(AA) by striking 
subclause (IV); and

(BB) by 
redesignating 
subclauses (V) and (VI) 
as subclauses (IV) and 
(V), respectively; and

(ii) by striking clause 
(viii); and
(II) in subparagraph (F), by 
striking ``qualified HUBZone small 
business concerns, small business 
concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business 
concerns owned and controlled by 
women'' and inserting ``and qualified 
HUBZone small business concerns''; and
(iii) in paragraph (4)(A)(ii)--
(I) in subclause (I), by adding 
``and'' at the end;
(II) by striking subclause (II);
(III) by redesignating subclause 
(III) as subclause (II);
(IV) in subclause (II), as so 
redesignated, by striking ``; and'' and 
inserting a period; and
(V) by striking subclause (IV);
(D) in subsection (k)--
(i) in the matter preceding paragraph (1), 
by striking ``and Disadvantaged'';
(ii) in paragraph (1), by striking ``and 
Disadvantaged''; and
(iii) in paragraph (2), by striking ``and 
Disadvantaged'';
(E) in subsection (l)(2)(G), by striking ``and 
Disadvantaged'';
(F) in subsection (s)(2)(A), by striking ``and 
Disadvantaged''; and
(G) in subsection (y)--
(i) in paragraph (1), by striking 
``qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business concerns owned 
and controlled by women'' and inserting ``and 
qualified HUBZone small business concerns'';
(ii) in paragraph (2), by striking 
``qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business concerns owned 
and controlled by women'' each place that term 
appears and inserting ``and qualified HUBZone 
small business concerns'';
(iii) in paragraph (3)(B), by striking 
``qualified HUBZone small business concerns, 
small business concerns owned and controlled by 
socially and economically disadvantaged 
individuals, and small business concerns owned 
and controlled by women'' and inserting ``and 
qualified HUBZone small business concerns''; 
and
(iv) in paragraph (4)--
(I) by striking subparagraphs (A) 
and (D); and
(II) by redesignating subparagraphs 
(B) and (C) as subparagraphs (A) and 
(B), respectively;
(6) in section 16 (15 U.S.C. 645)--
(A) in subsection (d)(1), in the matter preceding 
subparagraph (A), by striking ``a `small business 
concern owned and controlled by veterans', a `small 
business concern owned and controlled by socially and 
economically disadvantaged individuals', or a `small 
business concern owned and controlled by women''' and 
inserting ``or a `small business concern owned and 
controlled by veterans''';
(B) in subsection (e), by striking ``a `small 
business concern owned and controlled by veterans', a 
`small business concern owned and controlled by 
socially and economically disadvantaged individuals', 
or a `small business concern owned and controlled by 
women''' and inserting ``or a `small business concern 
owned and controlled by veterans'''; and
(C) in subsection (g)(2), by striking ``and 
Disadvantaged'';
(7) in section 21(a)(5)(D) (15 U.S.C. 648(a)(5)(D)), by 
striking ``small business, woman-owned business, or socially 
and economically disadvantaged business'' and inserting ``small 
business'';
(8) in section 22(l) (15 U.S.C. 649(l))--
(A) in paragraph (1)--
(i) in subparagraph (C), by inserting 
``and'' at the end;
(ii) by striking subparagraph (D); and
(iii) by redesignating subparagraph (E) as 
subparagraph (D); and
(B) in paragraph (3)(B)(ii)--
(i) by striking subclause (I); and
(ii) by redesignating subclauses (II) and 
(III) as subclauses (I) and (II), respectively; 
and
(9) in section 45(c)(1)(B) (15 U.S.C. 657r(c)(1)(B))--
(A) in clause (iii), by inserting ``or'' after the 
semicolon at the end;
(B) by striking clause (iv); and
(C) by redesignating clause (v) as clause (iv).
(b) Amendments to Other Acts.--
(1) American rescue plan act of 2021.--The American Rescue 
Plan Act of 2021 (Public Law 117-2) is amended--
(A) in section 5003(c)(3)(A) (15 U.S.C. 
9009c(c)(3)(A)), in the first sentence, by striking 
``small business concerns owned and controlled by 
women'' and all that follows through the period at the 
end and inserting the following: ``or small business 
concerns owned and controlled by veterans (as defined 
in section 3(q) of that Act (15 U.S.C. 632(q))).''; and
(B) in section 5004(a) (15 U.S.C. 9013(a)), by 
amending paragraph (5) to read as follows:
``(5) Eligible business.--The term `eligible business' 
means any small business concern, with priority for small 
business concerns owned and controlled by veterans, as defined 
in section 3(q) of the Small Business Act (15 U.S.C. 
632(q)).''.
(2) Consolidated appropriations act, 2005.--Section 155 of 
subtitle E of title I of division K of the Consolidated 
Appropriations Act, 2005 (15 U.S.C. 657g) is repealed.
(3) Federal acquisition streamlining act of 1994.--Section 
7104 of the Federal Acquisition Streamlining Act of 1994 (15 
U.S.C. 644a) is amended--
(A) in subsection (b)(3), by striking ``and 
Disadvantaged''; and
(B) in subsection (c)(3), by striking ``and 
Disadvantaged''.
(4) Minority business development act of 2021.--The 
Minority Business Development Act of 2021 (15 U.S.C. 9521 et 
seq.) is repealed.
(5) Small business economic policy act of 1980.--Section 
303(e) of the Small Business Economic Policy Act of 1980 (15 
U.S.C. 631b(e)) is amended--
(A) by striking paragraphs (1) and (2); and
(B) by redesignating the first paragraph (3) 
(relating to qualified HUBZone small business 
concerns), and the second paragraph (3) (relating to 
small business concerns owned and controlled by 
veterans) as paragraphs (1) and (2), respectively.
(6) Small business investment act of 1958.--Section 
411(c)(3)(B) of the Small Business Investment Act of 1958 (15 
U.S.C. 694b(c)(3)(B)) is amended by striking ``a small business 
concern owned and controlled by socially and economically 
disadvantaged individuals as defined by section 8(d) of the 
Small Business Act, or to''.
(c) Technical and Conforming Amendments.--
(1) American recovery and reinvestment act of 2009.--
Section 6001(h) of the American Recovery and Reinvestment Act 
of 2009 (47 U.S.C. 1305(h)) is amended--
(A) in paragraph (1), by inserting ``and'' after 
the semicolon;
(B) in paragraph (2)(D), by striking ``; and'' and 
inserting a period; and
(C) by striking paragraph (3).
(2) CARES act.--Title I of the CARES Act (15 U.S.C. 9001 et 
seq.) is amended--
(A) in section 1107(a) (15 U.S.C. 9006(a)), by 
repealing paragraph (5); and
(B) by repealing section 1108 (15 U.S.C. 9007).
(3) Energy policy act of 1992.--Section 3021 of the Energy 
Policy Act of 1992 (42 U.S.C. 13556) is amended--
(A) in subsection (a)--
(i) by striking paragraph (1); and
(ii) by redesignating paragraphs (2), (3), 
and (4) as paragraphs (1), (2), and (3), 
respectively; and
(B) in subsection (b)--
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as 
paragraph (2).
(4) Energy policy act of 2005.--Section 1003(a)(1) of the 
Energy Policy Act of 2005 (42 U.S.C. 16393(a)(1)) is amended by 
striking ``, including socially and economically disadvantaged 
small business concerns (as defined in section 8(a)(4) of the 
Small Business Act (15 U.S.C. 637(a)(4))),''.
(5) Export-import bank act of 1945.--The Export-Import Bank 
Act of 1945 (12 U.S.C. 635 et seq.) is amended--
(A) in section 2(b)(1)(E)(iii)(II) (12 U.S.C. 
635(b)(1)(E)(iii)(II)), by striking ``socially and 
economically disadvantaged small business concerns (as 
defined in section 8(a)(4) of the Small Business Act), 
small business concerns (as defined in section 3(a) of 
the Small Business Act) owned by women, and'';
(B) in section 3 (12 U.S.C. 635a(i)), by repealing 
subsection (i); and
(C) in section 8 (12 U.S.C. 635g)--
(i) in subsection (e), by striking 
``socially and economically disadvantaged small 
business concerns (as defined in section 
8(a)(4) of the Small Business Act), small 
business concerns (as defined in section 3(a) 
of the Small Business Act) owned by women, 
and''; and
(ii) in subsection (f)--
(I) by striking paragraph (4); and
(II) by redesignating paragraphs 
(5) through (8) as paragraphs (4) 
through (7), respectively.
(6) Federal acquisition streamlining act of 1994.--Section 
7104(c) of the Federal Acquisition Streamlining Act of 1994 (15 
U.S.C. 644a(c)) is amended--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph 
(2).
(7) Small business act.--The Small Business Act (15 U.S.C. 
631 et seq.) is amended--
(A) in section 7(j) (15 U.S.C. 636(j))--
(i) in paragraph (10)(D)(i), by striking 
``and shall be designed to result in the 
Program Participant eliminating the conditions 
or circumstances upon which the Administration 
determined eligibility pursuant to section 
8(a)(6)''; and
(ii) in paragraph (11)--
(I) by striking subparagraph (B);
(II) by redesignating subparagraphs 
(C) through (I) as subparagraphs (B) 
through (H), respectively;
(III) in subparagraph (C), as so 
redesignated, by striking ``(as defined 
pursuant to section 8(a)(4))''; and
(IV) in subparagraph (E), as so 
redesignated--
(aa) by striking clause 
(i); and
(bb) by redesignating 
clauses (ii) through (viii) as 
clauses (i) through (vii), 
respectively; and
(B) in section 46(e) (15 U.S.C. 657s(e))--
(i) in paragraph (1)--
(I) by striking subparagraph (B); 
and
(II) by redesignating subparagraphs 
(C), (D), and (E) as subparagraphs (B), 
(C), and (D); and
(ii) in paragraph (2)--
(I) by striking subparagraphs (C) 
and (D); and
(II) by redesignating subparagraphs 
(E) and (F) as subparagraphs (C) and 
(D), respectively.
(8) Small business jobs act of 2010.--Title III of the 
Small Business Jobs Act of 2010 (12 U.S.C. 5701 et seq.) is 
amended--
(A) in section 3002 (12 U.S.C. 5701)--
(i) by striking paragraph (18); and
(ii) by redesignating paragraph (19) as 
paragraph (18);
(B) in section 3003 (12 U.S.C. 5702), by repealing 
subsections (d) and (e); and
(C) in section 3009(e) (12 U.S.C. 5708(e))--
(i) in paragraph (1)--
(I) in the matter preceding 
subparagraph (A), by striking 
``business enterprises owned and 
controlled by socially and economically 
disadvantaged individuals, to very 
small businesses and business 
enterprises owned and controlled by 
socially and economically disadvantaged 
individuals'' and inserting ``very 
small businesses''; and
(II) in subparagraph (B), by adding 
``and'' after the semicolon at the end;
(ii) by striking paragraph (2);
(iii) by redesignating paragraph (3) as 
paragraph (2); and
(iv) in paragraph (2), as so redesignated--
(I) by striking ``(with priority 
given to business enterprises owned and 
controlled by socially and economically 
disadvantaged individuals),''; and
(II) by striking ``to provide 
technical assistance to business 
enterprises owned and controlled by 
socially and economically disadvantaged 
individuals'' and inserting ``to 
provide technical assistance to 
business enterprises''.
(9) Title 51, united states code.--Section 30304 of title 
51, United States Code, is repealed.

SEC. 3. ENDING CERTAIN PARTICIPATION GOALS FOR DEPARTMENT OF 
TRANSPORTATION FINANCIAL ASSISTANCE PROGRAMS.

(a) Written Assurances for Airport Improvement Project Grants.--
Section 47107(e) of title 49, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking ``10 percent'' and inserting ``5 
percent''; and
(B) by striking ``small business concerns (as 
defined by regulations of the Secretary) owned and 
controlled by a socially and economically disadvantaged 
individual (as defined in section 47113(a) of this 
title) or'';
(2) in paragraph (4)(B), in the second sentence, by 
striking ``small business concern owned and controlled by a 
socially and economically disadvantaged individual or as a''; 
and
(3) in paragraph (6), by striking ``small business concern 
owned and controlled by a socially and economically 
disadvantaged individual or a''.
(b) Disadvantaged Business Concern.--Section 47113 of title 49, 
United States Code, is amended--
(1) in the section heading, by striking ``Minority and 
disadvantaged business'' and inserting ``Small business concern 
and qualified HUBZone small business concern'';
(2) in subsection (a)--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph 
(2);
(3) by striking subsections (b) and (e);
(4) by redesignating subsections (c), (d), and (f) as 
subsections (b), (c), and (d), respectively;
(5) in subsection (c) (as redesignated by paragraph (3)), 
by striking ``small business concerns referred to in subsection 
(b) of this section'' and inserting ``qualified HUBZone small 
business concerns''; and
(6) in subsection (d)(1) (as redesignated by paragraph 
(3)), by striking ``small business concerns referred to in 
subsection (b)'' and inserting ``qualified HUBZone small 
business concerns''.
(c) Environmental Protection Agency.--The matter under the heading 
``administrative provisions'' under the heading ``Environmental 
Protection Agency'' under the heading ``INDEPENDENT AGENCIES'' in title 
III of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1993, is 
amended by striking the first paragraph (42 U.S.C. 4370d).

SEC. 4. ENDING RACIAL, ETHNIC, AND GENDER-BASED CONTRACTING GOALS IN 
OTHER GOVERNMENT PROGRAMS.

(a) Elimination of Reporting on Small Business Concerns Owned and 
Controlled by Socially and Economically Disadvantaged Individuals.--
Section 1713 of title 41, United States Code, is amended--
(1) by amending subsection (a) to read as follows:
``(a) Qualified HUBZone Small Business Concern Defined.--In this 
section, the term `qualified HUBZone small business concern' has the 
meaning given that term in section 31(b) of the Small Business Act (15 
U.S.C. 657a(b)).''; and
(2) in the first sentence of subsection (b), by striking 
``, the number of small businesses owned and controlled by 
women, and the number of small business concerns owned by 
socially and economically disadvantaged individuals, by 
gender,''.
(b) Disadvantaged Business Enterprises.--
(1) In general.--Section 3021 of the Energy Policy Act of 
1992 (42 U.S.C. 13556) is repealed.
(2) Clerical amendment.--The table of contents in section 
1(b) of the Energy Policy Act of 1992 (Public Law 102-486; 106 
Stat. 2782) is amended by striking the item relating to section 
3021.

SEC. 5. ENDING ALL RACIAL, ETHNIC, AND SEX-BASED DISCRIMINATION IN 
GOVERNMENT CONTRACTING AND AWARDS.

(a) Civilian Contracts.--
(1) In general.--Chapter 47 of title 41, United States 
Code, is amended by adding at the end the following new 
section:
``Sec. 4715. Prohibition on racial, ethnic, and sex-based preferences 
in government contracts and awards
``The head of an executive agency may not--
``(1) take into consideration the race, ethnicity, or sex 
of individuals owning, controlling, or managing businesses or 
other entities when granting contracts or awards; or
``(2) place requirements on contractors or grantees that 
require or encourage them to take into consideration the race, 
ethnicity, or sex of individuals to whom they award contracts, 
subcontracts, or awards.''.
(2) Clerical amendment.--The table of sections at the 
beginning of chapter 47 of title 10, United States Code, is 
amended by inserting after the item relating to section 4714 
the following new item:

``4715. Prohibition on racial, ethnic, and sex-based preferences in 
government contracts and awards.''.
(b) Defense Contracts.--
(1) In general.--Chapter 363 of title 10, United States 
Code, is amended by adding at the end the following new 
section:
``Sec. 4663. Prohibition on racial, ethnic, and sex-based preferences 
in defense contracts and awards
``The head of an agency may not--
``(1) take into consideration the race, ethnicity, or sex 
of individuals owning, controlling, or managing businesses or 
other entities when granting contracts or awards; or
``(2) place requirements on contractors or grantees that 
require or encourage them to take into consideration the race, 
ethnicity, or sex of individuals to whom they award contracts, 
subcontracts, or awards.''.
(2) Clerical amendment.--The table of sections at the 
beginning of chapter 363 of title 10, United States Code, is 
amended by inserting after the item relating to section 4662 
the following new item:

``4663. Prohibition racial, ethnic, and sex-based preferences in 
defense contracts and awards.''.
(c) Rulemaking.--Not later than 60 days after the date of the 
enactment of this Act, the head of each executive agency that has rules 
or regulations requiring or encouraging consideration of the racial or 
ethnic status or sex of individuals to whom they grant contracts or 
awards shall submit a proposed rulemaking removing all such references. 
The agency shall complete the rulemaking within 180 days after the date 
of the enactment of this Act.
(d) Guidance.--Not later than 60 days after the date of the 
enactment of this Act, the head of each executive agency that has 
guidance documents, directives, or notices requiring or encouraging 
consideration of the racial or ethnic status or sex of individuals to 
whom they grant contracts or awards shall submit new guidance, 
directives, or notices removing all such references.
(e) Executive Agency Defined.--In this section, the term 
``executive agency'' has the meaning given the term in section 133 of 
title 41, United States Code.
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