Technical corrections only. The v4 version of H.R. 2931 reflects its referral to the Senate and includes the name of the House Clerk. No substantive policy changes were made between v3 and v4.
Save SBA from Sanctuary Cities Act of 2025
- Sponsor
- Rep. Finstad, Brad [R-MN-1]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Jun 9, 2025
Bottom line
This bill mandates the relocation of Small Business Administration offices from jurisdictions deemed 'sanctuary cities' and imposes strict penalties for non-compliance, aiming to align federal operations with specific immigration enforcement policies.
What it actually does
This bill directs the Administrator of the Small Business Administration (SBA) to identify and relocate any regional, district, or local SBA office located in a jurisdiction defined as a 'sanctuary jurisdiction.' It sets a 120-day deadline for relocation, after which non-compliant offices must cease operations and their employees be reassigned. The bill also prohibits the establishment of new SBA offices in such jurisdictions.
Proponents argue
Supporters argue this bill ensures federal agencies do not operate in jurisdictions that, in their view, undermine federal immigration law. They contend it promotes compliance with federal mandates and sends a clear message about the importance of cooperation with immigration enforcement, thereby upholding the rule of law.
Opponents contend
Opponents would likely argue that this bill politicizes the Small Business Administration's mission, potentially disrupting vital services to small businesses in affected areas. They might also contend it imposes unnecessary administrative burdens and costs on the SBA, and that the definition of 'sanctuary jurisdiction' is overly broad or punitive, leading to unintended negative consequences for local economies.
The bill is very short and straightforward, making it easily accessible for a quick read and understanding of its core provisions.
Section 2(a), (b), (c)
Mandate to Relocate Covered Offices from Sanctuary Jurisdictions
This provision requires the Administrator of the Small Business Administration (SBA) to identify and relocate any regional, district, or local SBA office (excluding headquarters) that is located in a 'sanctuary jurisdiction.' Before ordering relocation, the Administrator must make a public determination that an office is in such a jurisdiction, and then relocate it to a location that is not in a sanctuary jurisdiction.
Supporters argue
Proponents argue this ensures federal resources are not expended in areas that do not fully cooperate with federal immigration enforcement, aligning federal operations with federal law and promoting accountability.
Critics contend
Opponents would contend this provision creates unnecessary administrative overhead and disrupts critical services to small businesses, potentially harming local economies without achieving its stated immigration enforcement goals.
Tradeoffs
This provision balances the desire for federal immigration enforcement cooperation with the practical implications of delivering federal services to local communities, potentially at the cost of service continuity.
Section 2(d)
120-Day Relocation Deadline and Penalties for Noncompliance
Once the Administrator publicly determines an office is in a sanctuary jurisdiction, it must be relocated within 120 days. If this deadline is not met, the office must cease operations, and its employees are reassigned to other non-sanctuary offices in the same state (or any non-sanctuary office if none exist in the state). The head of the non-compliant office must submit a written explanation, and the Administrator can immediately remove them if the explanation is not submitted or deemed insufficient.
Section 2(e)
Prohibition on Establishing New Offices in Sanctuary Jurisdictions
This provision explicitly prohibits the Administrator of the Small Business Administration from establishing any new regional, district, or local offices in a jurisdiction that has been identified as a 'sanctuary jurisdiction.' This prevents future expansion of SBA's physical presence in such areas.
Section 2(f)(4)
Definition of 'Sanctuary Jurisdiction'
This section defines 'sanctuary jurisdiction' as a political subdivision of a State that has a statute, ordinance, policy, or practice prohibiting or restricting any government entity or official from sharing citizenship or immigration status information with federal, state, or local government entities, or from complying with lawful Department of Homeland Security requests for detainers or notification of release under specific sections of the Immigration and Nationality Act (8 U.S.C. 1226 and 1357).