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H.R. 2989·119th Congress·Introduced Apr 24, 2025

Time to Choose Act of 2025

IntroducedGovernment Operations and PoliticsMajor
View bill text
Sponsor
Rep. Bresnahan, Robert [R-PA-8]
Committees
Oversight and Government Reform Committee (primary)
Last action
Apr 24, 2025

Bottom line

The bill aims to eliminate conflicts of interest in federal contracting by forcing consulting firms to choose between working for the U.S. government or for foreign entities deemed adversarial to U.S. national security.

What it actually does

This bill mandates that consulting firms seeking federal contracts must certify they do not simultaneously hold consulting contracts with designated "covered foreign entities," which include China, Russia, state sponsors of terrorism, and entities on various U.S. government blacklists. It prohibits federal agencies from awarding consulting contracts to firms with such conflicts, but establishes a waiver process for exceptional national security circumstances, subject to strict conditions and extensive reporting requirements.

Proponents argue

Proponents argue that it is a critical national security imperative to prevent consulting firms from simultaneously advising the U.S. government and foreign entities that actively seek to undermine American interests. They contend that this measure will protect sensitive information, prevent economic espionage, and ensure the loyalty of federal contractors, thereby safeguarding national security and economic integrity.

Opponents contend

Opponents might argue that this bill could significantly restrict the pool of highly specialized consulting firms available to the U.S. government, potentially leading to increased costs, reduced access to critical expertise, or delays in federal projects. They may also raise concerns about the broad definition of 'covered foreign entity' and the administrative burden it places on firms with legitimate global operations.

The bill is relatively short and clearly structured, making it accessible for an informed reader to understand its core provisions within a reasonable timeframe.

Section 3(a)

Prohibition on Federal Contracting with Conflicted Entities

prominently featuredstraightforward

This provision directs the Federal Acquisition Regulatory Council to amend the Federal Acquisition Regulation (FAR) within one year. These amendments will require any entity offering consulting services to an executive agency to certify that neither it nor its subsidiaries or affiliates hold consulting contracts with one or more 'covered foreign entities.' It further prohibits federal contracts for consulting services from being awarded to any entity that fails this certification.

GroupImpactMechanismScale
GroupConsulting firms (NAICS 5416)ImpactImposes a new regulatory requirement for certification and potentially restricts their client base if they wish to contract with the U.S. government.MechanismNew Federal Acquisition Regulation (FAR) requirements.ScaleAffects all consulting firms seeking federal contracts.
GroupFederal executive agenciesImpactRequires implementation of new FAR rules and potentially narrows the pool of available contractors.MechanismCompliance with amended FAR.ScaleApplies to all executive agencies.

Supporters argue

Supporters argue this provision directly addresses the conflict of interest, ensuring that federal contractors are not simultaneously working for entities hostile to U.S. national security. It promotes loyalty and reduces the risk of sensitive information compromise.

Critics contend

Critics might contend that this could significantly narrow the pool of qualified contractors, especially for highly specialized services, potentially leading to higher costs or delays for federal projects. They may also argue it creates an unnecessary burden on firms with legitimate international operations.

Tradeoffs

Balances national security concerns against potential impacts on the federal contracting market and the operational flexibility of consulting firms.

Section 3(b)

National Security Waiver Authority

prominently featuredmoderately complex

This section establishes a waiver process allowing the head of an executive agency to bypass the conflict of interest restrictions on a case-by-case basis. A waiver can be granted if it's deemed in the national security interest, no other non-conflicted entity can perform the work, and extensive notification requirements to the Office of Management and Budget (OMB) and Congress are met. Waivers are limited to 365 days, extendable once for 180 days, and only one waiver can be active for a single entity across all executive agencies at any given time.

Section 3(b)(3)

Mandatory Reporting of Human Rights, Religious Liberty, and National Security Risks Under Waiver

mentioned in summarystraightforward

When an executive agency grants a waiver, it must require the contractor to report any human rights violations, religious liberty violations, or risks to U.S. economic or national security that the contractor identifies through information obtained during the performance of its contract with the covered foreign entity.

Section 4

Enforcement and Penalties for False Certifications

prominently featuredstraightforward

This section outlines severe penalties for consulting firms that knowingly submit false certifications or information regarding their contracts with covered foreign entities. If such a determination is made, the executive agency must terminate the federal contract and consider suspending or debarring the firm from eligibility for future federal contracts. Additionally, firms may face liability under the False Claims Act, which can include penalties of three times the amount of damages sustained by the U.S. government.

Section 5(3)

Definition of Covered Foreign Entity

prominently featuredhighly complex

This section provides a comprehensive definition of 'covered foreign entity,' which includes the Government of the People's Republic of China, the Chinese Communist Party, and related security/intelligence agencies; the Government of the Russian Federation and sanctioned entities; governments designated as state sponsors of terrorism; and entities listed on various Department of Commerce lists (e.g., Entity List, Military End User List) or the Department of the Treasury's Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC List).

FOUND

The definition of 'consulting services' explicitly excludes the provision of products or services related to compliance with legal, audit, accounting, tax, reporting, or other requirements of the laws and standards of countries; or participation in a judicial, legal, or equitable dispute resolution proceeding.

Section 5(2)

Why it matters:This is standard legislative practice to define terms precisely and to carve out specific activities from the scope of the bill. The exclusion prevents the bill from inadvertently disrupting essential legal and financial services that are distinct from strategic consulting.

Case for: Supporters would argue this exclusion is necessary to avoid disrupting essential legal and financial services that firms provide globally, which are distinct from strategic consulting that could pose national security risks. It prevents unintended consequences for routine business operations.

Case against: Critics might argue that even these 'compliance' services could provide covered foreign entities with valuable insights into international regulatory environments or financial systems, indirectly aiding their strategic goals, or that the line between compliance and strategic advice can be blurry.

Estimated impact: Significant, as it exempts a large segment of international professional services from the conflict of interest prohibition, allowing law firms, accounting firms, and tax advisors to continue their work with covered foreign entities while also contracting with the U.S. government.

FOUND

This section states that 'No additional funds are authorized to be appropriated for the purpose of carrying out this Act.'

Section 6

Why it matters:This is standard legislative practice for bills that intend to operate within existing appropriations or to avoid triggering CBO scoring for new spending, making the bill appear fiscally neutral.

Case for: Proponents would argue this demonstrates fiscal responsibility, ensuring the bill's implementation does not add to the national debt and that agencies must prioritize within their existing budgets.

Case against: Critics might argue that implementing a complex new regulatory framework, including amending the FAR, establishing waiver processes, and enforcing penalties, will inevitably incur costs for executive agencies. Without additional funding, agencies may struggle to adequately implement and enforce the Act, potentially leading to delays or ineffective oversight.

Estimated impact: Could strain agency resources, potentially impacting the effectiveness and timeliness of implementation by requiring reallocation of existing funds from other priorities.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

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