The Freedom from Government Competition Act of 2025 would require federal agencies to purchase goods and services from private companies rather than providing them in-house, with limited exceptions. The bill applies to executive departments, military departments, and independent agencies, and would allow federal employees to continue only performing "inherently governmental functions" while outsourcing other work to private contractors. Agencies could exempt activities only if the law requires federal production, if the work is critical to national defense or homeland security, or if no private sector alternative exists—and even then must certify their exemptions to Congress. The Office of Management and Budget would develop regulations to implement the policy and issue annual reports by June 30 evaluating agency exemptions and proposing a five-year timeline for transferring commercial activities to the private sector. The bill contains no specific appropriations but would fundamentally shift how federal agencies operate by prioritizing private sector contracting over government-performed services.
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