H.R. 2804: Protecting Small Business Competitions Act of 2025

The Protecting Small Business Competitions Act of 2025 aims to support small businesses by ensuring they have better access to federal contracts. It does this by making the 'Rule of Two' a permanent part of the Small Business Act. This rule requires that if a government contract is worth more than a certain amount, and there are at least two small businesses capable of doing the work at a fair price, the contract must be set aside exclusively for small businesses. This change is intended to increase opportunities for small businesses to compete for and win government contracts.

Supporters of the bill argue that it will strengthen the small business sector by providing more opportunities to secure federal contracts. By codifying the 'Rule of Two,' the legislation aims to level the playing field, allowing small businesses to compete more effectively against larger companies. Proponents believe this will foster entrepreneurship, stimulate local economies, and diversify the pool of government contractors.

Critics express concerns that reserving contracts exclusively for small businesses could limit competition, potentially leading to higher costs for the government. They argue that while supporting small businesses is important, the 'Rule of Two' might result in the government paying more than it would in an open competition that includes larger firms. Additionally, some worry about the administrative burden on contracting officers to determine the eligibility and capability of small businesses for each contract.

The Protecting Small Business Competitions Act of 2025, sponsored by Nydia Velázquez, does not have any direct industry overlaps with her top donor industries, which are primarily health professionals and retirees. With $120 million from health professionals and $37.5 million from retired individuals, there is no evident financial incentive linked to the bill's subject matter, which focuses on small business competition. The absence of direct connections suggests that the potential for conflicts of interest is minimal. Additionally, while there is lobbying activity in the policy area, the undisclosed amounts and entities do not provide a clear link to the sponsor's financial backers, further supporting the low-risk assessment.

Organizations that lobbied on issues related to this bill's policy area.

Source: Senate Lobbying Disclosure Act (LDA) filings, 2026

Top industries funding Nydia Velázquez, ranked by total contributions.

Source: OpenSecrets.org (Center for Responsive Politics)