Bill would make small business contract set-asides mandatory, not optional
Placed on the calendarH.R. 2804Latest action
Sponsor: Nydia M. Velázquez · Representative · NY
AIDecoded by AI · checked against the recordRead the official text
Official title: Protecting Small Business Competitions Act of 2026
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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HR 2804 would make the "Rule of Two" a permanent legal mandate for federal contracts over $250,000, not just agency guidance.
45-second read · 4 questions answered below
What does this do?
HR 2804, the Protecting Small Business Competitions Act of 2026, would turn the "Rule of Two" into a permanent legal requirement. Agencies buying goods or services above the simplified acquisition threshold (currently $250,000) must set the contract aside for small businesses if at least two are likely to bid at a fair market price. The rule would not apply to smaller task or delivery orders issued under existing larger contracts.
Who does it affect?
This affects federal agencies that purchase goods and services, and small businesses that compete for federal contracts. Larger companies that also bid on federal work are affected, since more contracts could be reserved for small businesses only.
Why does it matter?
Agencies would have less discretion over whether to set aside qualifying contracts for small businesses, changing how competition for federal work is structured. Larger firms could face reduced access to some contracts currently open to all competitors.
AI-drafted summary. Check it against the official text before you act on it.
Based on the “Reported in House” text of Jul 2, 2026.
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Where does it stand?
- IntroducedApr 9, 2025
- House committee
- House voteYou are here · Jul 2, 2026
- Senate
- The president's desk
Right now: it was placed on the , and the official record shows no floor action on it since. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Placed on the Union Calendar, Calendar No. 624.