# Plain Language Summary of H.R. 9453

This bill creates a financial incentive program for large defense contractors to hire small businesses from three specific U.S. territories: Guam, the Northern Mariana Islands, and American Samoa. When a major defense contractor subcontracts work to a qualifying small business in one of these Pacific island areas, the Department of Defense will pay the contractor a bonus equal to five percent of the subcontract's value. For example, if a contractor signs a $100,000 subcontract with a Pacific island business, the Defense Department would pay the contractor an additional $5,000.

To qualify for this program, the small business must meet several requirements: it needs to be at least 51 percent owned by U.S. citizens, have its main office in one of the three Pacific territories, employ at least half of its workforce from that same territory, and commit to maintaining that employment level throughout the contract. The goal is to encourage defense contractors to do business with local companies in these economically developing regions, which would create jobs and economic activity that might not otherwise happen.

The bill requires the Small Business Administration and the Defense Department to report annually for ten years on how the program is working. They'll track how many contractors participate, what economic benefits the Pacific islands receive, and whether they have ideas to get more contractors involved. This is essentially a subsidy designed to boost economic development in these three U.S. territories by making it financially attractive for defense contractors to partner with local businesses rather than contractors from the mainland.

To amend title 10, United States Code, to require payments to contractors for subcontracting with Pacific Insular Area concerns, and for other purposes.