# What This Bill Does

Right now, there's a federal rule that says when small businesses win government construction contracts, they have to hire their subcontractors (the companies they hire to do parts of the work) from within the same county or state where the construction project is happening. This bill would simply delete that rule.

In practical terms, this means small construction companies that get federal contracts would no longer be restricted to hiring subcontractors locally. They could hire workers and companies from anywhere in the country to help them complete the job. So if a small business in Alaska wins a federal construction contract, they could currently only hire subcontractors from Alaska—but under this bill, they could hire from Texas, California, or anywhere else.

The main impact would be on local construction workers and small subcontracting businesses. In some areas, this could mean less work available locally because contractors might find cheaper or more specialized workers elsewhere. On the flip side, it could give small businesses more flexibility to find the best workers for their specific project, potentially helping them complete jobs more efficiently or at lower cost. The bill was introduced by representatives from Alaska and Hawaii, states where the local contractor pool might be smaller or more expensive, which suggests they see this as helpful for businesses operating in more remote or isolated areas.

To amend the Small Business Act to eliminate certain requirements relating to the award of construction subcontracts within the county or State of performance.

Peltola, Mary Sattler

 <p>This bill eliminates a requirement that, to the maximum extent practicable, certain construction subcontracts awarded by the Small Business Administration must be awarded within the county or state where the work is to be performed.</p>