Technical corrections only. The changes between v3 and v4 reflect the bill's procedural progression from being engrossed in the House to being referred in the Senate, including updated attestation information. No substantive policy changes were made to the bill text.
WOSB Accountability Act
- Sponsor
- Rep. Velázquez, Nydia M. [D-NY-7]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Jun 4, 2025
Bottom line
The WOSB Accountability Act mandates that only federally certified women-owned small businesses will count towards federal contracting goals, aiming to enhance program integrity and accountability.
What it actually does
This bill amends the Small Business Act to mandate that only formally certified women-owned small business (WOSB) concerns are counted towards federal government-wide and agency-specific contracting goals. It phases out the inclusion of self-certified WOSBs after a transition period, during which self-certified WOSBs that have applied for certification will still be counted. The bill also requires the Small Business Administration (SBA) to issue regulations and provide quarterly briefings to Congress on the implementation of these new certification requirements.
Proponents argue
Proponents argue this bill strengthens the integrity and effectiveness of the Women-Owned Small Business (WOSB) program by ensuring that only genuinely eligible businesses are counted towards federal contracting goals. They contend that requiring third-party or SBA certification, rather than self-certification, reduces fraud and abuse, ensures fair competition, and directs federal contracts to the intended beneficiaries, thereby maximizing the program's impact on women entrepreneurs.
Opponents contend
Opponents might argue that this bill creates an unnecessary administrative burden and cost for small women-owned businesses, particularly those with limited resources, by requiring formal certification instead of allowing self-certification. They may contend that the certification process could delay or deter eligible businesses from participating in federal contracting, potentially reducing the overall number of WOSBs able to compete for contracts and undermining the program's accessibility and reach.
The bill is very short and easy to read, allowing ample time for evaluation.
Section 2(a)
Exclusion of Self-Certified WOSBs from Governmentwide and Agency Goals
This provision amends Section 15(g) of the Small Business Act to specify that only small business concerns owned and controlled by women that have been formally certified under section 8(m)(2)(E) (by the Administrator or an approved national certifying entity) shall be included when calculating federal government-wide and agency-specific contracting goals for WOSBs. This means that after the effective date, self-certified WOSBs will no longer contribute to these official contracting goals.
Supporters argue
Proponents argue this provision is essential for enhancing the integrity and accountability of the WOSB program. By requiring formal certification, it ensures that federal contracts intended for women-owned businesses are indeed awarded to eligible entities, reducing instances of fraud and misrepresentation and ensuring fair competition.
Critics contend
Opponents might contend that this requirement creates an additional administrative and financial burden for small women-owned businesses, potentially deterring some from participating in federal contracting. They may argue that the certification process could be complex and costly, especially for smaller WOSBs with limited resources.
Tradeoffs
This provision balances the goal of program integrity and fraud prevention against the potential for increased administrative burden and reduced accessibility for some small women-owned businesses.
Section 2(b)(1)
Transition Period for Certain Self-Certified WOSBs
This provision establishes a temporary rule allowing certain self-certified WOSBs to continue being counted towards federal contracting goals even after the new certification requirement takes effect. Specifically, a WOSB that was self-certified as of the effective date of the new rules, and has filed a certification application with the SBA or an approved national certifying entity before that date, will be deemed certified for goal calculation purposes. This temporary status lasts until a determination is made on their certification application.
Section 2(b)(2) and 2(c)
SBA Rulemaking and Congressional Oversight
This section mandates the Administrator of the Small Business Administration (SBA) to issue regulations to implement the Act within one year of its enactment. Additionally, it requires the Administrator to provide quarterly briefings to the House and Senate Small Business Committees. These briefings must cover key implementation metrics, including the number of expected and pending certification applications, approvals, processing timelines, administrative costs, outreach efforts, and recommendations for additional legislative authority or resources.
The effective date for the requirement that only certified WOSBs count towards federal goals is delayed until the first day after the end of the second fiscal year beginning after the Administrator issues the required regulations.
Section 2(a)(2)
Why it matters:While effective dates are often separated, the conditional nature and multi-year delay make this more than a standard technicality. It provides a substantial buffer for implementation, which could be seen as either pragmatic or a deferral of accountability.
Case for: Supporters argue this delayed effective date provides the Small Business Administration and WOSBs ample time to prepare for the new certification requirements, ensuring a smoother transition and minimizing disruption to federal contracting opportunities for women-owned businesses.
Case against: Critics might contend that this extended delay in implementation postpones the full realization of enhanced program integrity and accountability. They could argue it allows for a prolonged period where the program's effectiveness might still be compromised by self-certification issues.
Estimated impact: Delays the full effect of the bill's primary mandate by at least two fiscal years plus the time it takes for the SBA to issue regulations (up to one year).
This section explicitly states that no additional funds are authorized to carry out the requirements of this Act and the amendments made by this Act.
Section 2(e)
Why it matters:This type of provision is often included to signal fiscal conservatism or to avoid triggering new appropriations, which can be politically sensitive. Its placement at the end is standard but can obscure its operational impact.
Case for: Proponents argue that this provision ensures fiscal responsibility by requiring the Small Business Administration to implement the new certification requirements using its existing budget, thereby avoiding new federal spending and potential increases to the national deficit.
Case against: Critics might argue that without additional funding, the Small Business Administration could face significant challenges in efficiently processing a potentially large influx of certification applications. This lack of resources could lead to delays, backlogs, and a strained system, potentially undermining the bill's goals of enhanced accountability and accessibility.
Estimated impact: Potentially strains the Small Business Administration's existing resources, affecting its capacity to process certification applications and conduct outreach efficiently.