S. 1365: No Federal Payments to Companies Controlled by Special Government Employees Act of 2025

This bill, titled the No Federal Payments to Companies Controlled by Special Government Employees Act of 2025, aims to impose restrictions on the awarding of government contracts and grants to companies that are owned or controlled by individuals classified as special Government employees. Below are the main components of the bill:

Prohibition on Contracts and Grants

The bill stipulates that federal executive agencies cannot award contracts, grants, or cooperative agreements, nor make any payments related to these to any company that has a special Government employee as a beneficial owner. A special Government employee is defined as someone who is expected to perform duties on a temporary basis in a federal agency. This prohibition applies to those individuals who become beneficial owners of such companies on or after January 1, 2025.

Conditions for Exemption

If an individual is a beneficial owner of a company and is considered a special Government employee, they must cease being a special Government employee to allow their company to receive federal contracts or grants. Specifically, that individual must not hold the special Government employee status at any time within the 365 days following the enactment of the bill.

Definitions Provided in the Bill

• Company: This includes a range of business structures such as corporations, limited liability companies, limited partnerships, business trusts, or other similar entities.
• Covered Beneficial Owner: This refers to individuals who own 5% or more of a company's equity securities and are classified under specific regulatory guidelines.
• Equity Security: This term encompasses various financial instruments representing ownership in a company, as defined in existing security regulations.
• Executive Agency: An executive agency includes all federal agencies that fall under specific legal definitions.
• Special Government Employee: Defined by federal law, this classification includes temporary or part-time employees in government positions.

Scope and Impact

The bill addresses potential conflicts of interest by ensuring that companies owned or controlled by special Government employees do not have access to federal contracts or grants, thus promoting transparency and accountability in government spending.

Relevant Companies

• None found