A bill introduced in the House and Senate in late April would effectively wipe out many of the contracting preferences for minority and women owned businesses.

The Ending Discrimination in Government Contracting Act was introduced by Sen. Mike Lee (R-Utah) and Rep. Glenn Grothman (R-Wisconsin). It would codify and expand on provisions in President Trump’s March 26 executive order on diversity, equity and inclusion provisions in federal contracts.

The EO requires agencies to insert a clause in contracts that bans DEI and mandates reporting requirements to assure compliance, as well as allowing agencies to cancel contracts for not complying with the no-DEI requirement.

Prime contractors would be required to report subcontractors who violate the contract clause. Primes also would be required to report subcontractors who file a lawsuit challenging the no-DEI requirement.

The executive order also set a July 24 deadline for agencies to modify existing contracts by inserting the no DEI clause.

In their bill, Lee and Grothman also aim to eliminate contracting goals and preference programs for small businesses owned by socially and economically disadvantaged individuals. These include the 8(a) program and small businesses owned by women.