This bill prohibits federal agencies from awarding contracts, grants, or cooperative agreements to companies that are substantially owned by special government employees. A "covered beneficial owner" is defined as someone who owns 5 percent or more of a company's equity. The ban applies to companies whose beneficial owners served as special government employees anytime from January 1, 2025 onward, unless that individual immediately leaves their special government employee position and does not return to it for at least 365 days after the bill becomes law. The legislation applies to all executive branch agencies and is intended to prevent conflicts of interest and ensure federal funds do not benefit companies controlled by people with dual government and private sector roles.
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