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House Small Business U.S. House of Representatives
Follow its sittingsSpeaker 3
Thank you, Mr. Chairman, for convening this markup today. Let me begin by thanking you for adding HR 2084, the Protecting Small Business Competition Act, to the agenda today. The rule of two is critical to preserving competition and allowing small business contractors to successfully enter, compete, and remain in the industrial base. HR2804 is a priority for me, and I look forward to working with you to get it enacted into law before the end of the session.
I plan to lend my support to all but one bill under consideration today. Five of the bills under consideration will arm our committee with more information to oversee the SBA and ensure program integrity. I applaud members for working together on these bills, which will increase reporting, improve accountability, and ensure policymakers have information to see how the agency is operating and serving entrepreneurs. On one hand, we have these bipartisan bills calling for studies and reports, but on the other, we are doing very little to address the real concerns of small businesses. President Trump's failed economic agenda is leaving small businesses with mounting anxiety, uncertainty, and economic pain.
They are struggling with tariffs, higher borrowing costs, and surging food and gas prices. I want to make it clear that Democrats on this committee stand ready to conduct oversight of the SBA and work together to address the needs of small employers, entrepreneurs, and the communities they support. That is where our focus needs to be, delivering real results for small businesses. Thank you again, Mr. Williams.
I yield back.
Speaker 1
General Lady yields back. Does any other member seek recognition for the purpose of making an opening statement? All right. Seeing none, we will move to the consideration of the first bill. All right.
The committee now moves to the consideration of H. R. Four thousand two thirty-eight, the Disaster Loan Accountability and Reform Act introduced by Representative Tim Moore from the great state of North Carolina, with Representative Goodlander as the committee co-lead. The clerk will report the bill.
Speaker 1
Objection. HR 42 38 is considered as red and open for amendment. I have an amendment in the nature of a substitute at the desk. The amendment has been distributed in advance. The clerk will report the amendment.
Speaker 1
Without objection, the amendment will be considered as read, and will serve as the base text for the purpose of further amendment. I now recognize myself for remarks on the bill and the amendment. I'd first like to thank our colleague, Mr. Moore, from the great state of North Carolina, for introducing this bill. During the 2024 hurricane season, the SBA disaster loan relief program under the Biden administration exhausted its funding entirely for the first time, since the program's inception.
This has forced a pause on new loan disbursements while thousands of Americans are actively recovering from hurricanes Milton and Helene. Survivors across impacted communities were left waiting for help, not because help was unavailable, but because the Biden SBA failed to properly and timely notify Congress of a funding shortfall, and that's unacceptable, I think we all agree, and it cannot happen again. So, H. 4,238, the Disaster Loan Accountability Perform Act, responds directly to that catastrophe by strengthening oversight and transparency, improving budgeting requirements, and building greater accountability into the disaster lending process. This bill ensures the program can keep pace with the scale of modern disasters we see.
It reflects our commitment to helping families, homeowners and small businesses recover and rebuild, and it also gives Americans the confidence that when a disaster strikes their community, relief will be there. I urge my colleagues to vote yes on H. R. 4,238, as amended, and I'd yield back. I now recognize Representative Goodlander from the great state of New Hampshire to speak on the bill and the amendment.
Speaker 2
Thank you, Mr. Chairman. Ranking member Velasquez, thank you for your leadership. I'm very proud to be leading our bipartisan Disaster Loan Accountability Reform Act alongside two great colleagues from the state of North Carolina, Tim Moore and Don Davis. Congressman Davis represents communities in Eastern North Carolina that were among the hardest hit by Hurricane Helene. We saw in that moment what it looks like when our government falls short of our people when they need us most, and our bipartisan bill is an answer to those preventable failures.
So here's what happened. In 2024, disaster struck. Hurricane after hurricane made landfall across the United States. Communities were devastated. Families lost their homes.
Small businesses, they watched their livelihoods wash away. And it was this, precisely the moment that the Small Business Administration's disaster loan program was made for. Low interest loans to help businesses reopen, to help homeowners rebuild, to give the American people a fighting chance. But on 10/15/2024, right in the midst of this crisis, the SBA announced that its disaster loan account was empty, exhausted, gone. It couldn't approve new loans.
It couldn't disburse money to people who were waiting. That lasted for more than 2 months while congress scrambled to act. Two months for families sleeping in FEMA trailers, for small businesses who had just enough hope left to fill out an application and wait. Now here's the part, I think, for all of us who believe in accountability, and in this committee, I know we do, this lapse was not inevitable. It was not caused by some unprecedented force of nature or disaster beyond imagination.
It was caused by preventable failures. I think the lesson of 2024 is simple. Disaster response cannot be opaque and reactive. It must be transparent and accountable. The SBA didn't meet its requirements.
And by the time the authorizing committees found out that there was a problem, there was no time left to act. You know, in New Hampshire, we are not strangers to disasters. Severe flooding, northeasters, ice storms that shut down roads and destroy infrastructure. Our farmers up in our Upper Valley, our producers up in our North Country, our growers in the Monadnock region, they face weather events that can wipe out literally generations of work. When disaster strikes, SBA's disaster loans are often genuinely the first and only lifeline available.
It's the difference between rebuilding and closing for good. So our bipartisan bill will make sure that America's small businesses, our family farmers never have to face a moment where they're told, we're sorry, we ran out of money, and nobody told Congress in time to fix it. So here's what our bill does. It requires the SBA to report monthly on the status of the disaster loan account, not only when disaster has been declared, but continuously so that here in Congress, we always have current information. It requires the SBA to alert us here in Congress within 24 hours when the account falls below 10% of the ten year average, and it requires separate budget line items so that we can see exactly what's being requested and why.
It also directs the government accountability office to conduct two, what I think are important studies, that will examine administrative changes that were made to the disaster loan program in 2023 and 2024, changes that may have contributed to the faster than expected depletion of the account. We've got to understand what happened. We need the data. We need accountability. And there's one more provision I want to highlight in this bill.
Until the SBA administrator submits the required monthly report to Congress, the administrator cannot engage in official travel. So this may sound like a small thing, but I think it's a meaningful accountability mechanism to be sure that we've got the information we need. This, at the end of the day, reporting what we learned in 2024, this is not a bureaucratic box-checking exercise. It is a basic obligation of an executive branch agency to be accountable to the legislative branch and the people we represent. So I'm very proud to be leading this bipartisan bill.
I'm really grateful for the work of all of our colleagues to make sure that when Americans need help in the midst of and after a disaster, we are ready with funds in the account and with Congress fully informed. So I urge my colleagues to support the amendment in the nature of a substitute and the underlying bill. And with that, I yield back.
Speaker 1
General, lady yields back. Are there any other members who wish to be recognized for a statement on this bill? I now recognize the ranking member to speak on the bill and the amendment.
Speaker 3
Thank you, Mr. Chairman. I support H.R. 4,238, the Disaster Loan Accountability and Reform Act as amended. The SBA disaster loan program, which provides long-term, low-interest, direct loans to homeowners, renters, small business owners and nonprofits after declared disasters, plays a critical role in the federal government's disaster response efforts. The SBA failed to properly alert Congress of its impending budget shortfall, which led to a lapse in program funding and a prolonged delay in much-needed relief to affected communities. While the SBA cannot effectively address our changing climate, it can do a better job at updating Congress about.
Speaker 3
The Disaster Loan Accountability and Reform Act, or DELARA. This bill requires common sense reporting from the SBA and transparency from the White House when they submit their annual budget request. It also requires the administrator to notify Congress when program funds run low and directs the GAO to study how past rulemaking has affected the speed of that process. This bill adds transparency to the process to ensure disaster-affected communities never have to face a lapse again. I thank all the sponsors, including Miss Goodlander, Miss Keenheim, and Mister Mueller, and for their work.
This is a very important legislation. I know because I lived through Sandy in New York and Maria when it struck Puerto Rico. This is a very important disaster program, and it's one of the most important programs. You know, there's nothing more important than when natural disasters strike to immediately work to make families whole that are suffering, and even so many lost their lives. So thank you for the work that you've done in a bipartisan way.
Speaker 1
Gentle lady yields back. Does anyone wish to offer an amendment? I see none. The question now occurs on the adoption of the amendment in the nature of a substitute to HR 4238. All in favor say aye.
All those opposed say no. In the opinion of the chair, the ayes have it. The amendment in the nature of a substitute to HR 4238 is adopted. The question now comes on ordering HR 42 38 as amended to be reported favorably to the house. All those who have ever say, aye.
All those posts, say no. Opinion of the chair, the ayes have it. HR 42 38 is agreed to.
Speaker 1
A member has asked for a recorded vote, and a vote has been requested, and a roll call vote is ordered. Pursuant to committee rule 13 and House Rule 11, further proceedings on the bill are postponed. The committee now moves to the consideration of HR 8897, the Oversight and Transparency for small business certifications act of 2026 introduced by representatives Moshevsky and Weed. The clerk shall report the bill.
Speaker 1
This HR 80 or HR 88 79 is considered as read and open for amendment. I now recognize Representative Oshelsky from the great state of Maryland for a statement on the bill.
Speaker 6
Thank you very much, mister chairman, ranking member, and to all of my colleagues here today. I wanna begin by thanking Representative Weed for his partnership and his leadership on this important effort. I'm proud to help lead this bipartisan bill because I believe that we can, and we should always work harder to ensure that federal programs work efficiently for the American people. Congress created the three small business contracting programs this bill impacts. The women-owned small business program, historically underutilized business zone program, and the service-disabled veteran-owned small business program.
These programs help our government recruit and retain quality small businesses while also leveling the playing field for them to enter, compete, and have success in the federal market. In the past years, each program has had its own online certification platform and designated staff within the SBA's Office of Government Contracting and Business Development. As a result, small businesses had far different certification experiences. For example, in 2023, service-disabled veterans seeking an SBA certification were served by 20 dedicated SBA staff and 54 contractors who process their applications in about three weeks. The woman-owned small business program applicants, however, were served by eight SBA staff and two contractors, resulting in a backlog of roughly 7,000 applicants with an average wait time of almost a year.
Ensuring fairness and promoting efficiency for all small business owners is an overarching goal of all members of this committee. Our bill will require the SBA to provide greater detail in their budget justification documents regarding their certification processes, infrastructure, and timelines, as well as participants' backlogs and wait times for small business applicants. That will allow this committee to more effectively conduct oversight and to identify issues with the certification process and SBA portals in a more timely manner for American small business owners across the country. I urge my colleagues to support this legislation, and I yield back.
Speaker 1
Gentleman yields back. I now recognize Representative Weed from the great state of Wisconsin for a statement on the bill.
Speaker 7
Thank you, Mr. Chairman. Our bipartisan legislation, H.R. 8879, the Oversight and Transparency for Small Business Certifications Act, will require the SBA to report on the certifications and contract awards for its small business programs. SBA programs, including the service-disabled veteran-owned small business programs, are important to ensure all entrepreneurs are given a chance to succeed. By improving the transparency of programs like these, Congress can ensure that the appropriate measures are taken to certify or decertify firms to help root out waste, fraud, and abuse. I am proud to co-lead this bill alongside my friend and colleague, Representative Oshelski, and I encourage my colleagues to support this common-sense bipartisan legislation.
Speaker 1
Gentlemen, Neil's back. Are there any other members who wish to be recognized for a statement on the bill? Alright. Seeing none, I'd like to recognize the ranking member to speak on the bill.
Speaker 3
Thank you, Mr. Chairman. I appreciate the work of my colleagues, representatives of Chelsky, and we move this bill forward. Our committee's ability to assist small businesses depends in part on our ability to conduct appropriate and effective oversight of the SBA. Unfortunately, we do not always receive sufficient or timely responses to inquiries, and what should be routine reporting is often delayed, sometimes past the point of relevancy. For example, under the previous administration, both Chairman Williams and I raised concerns about whether the committee had a full picture of the unified certification platform's challenges.
And I frequently heard from women-owned businesses about the backlog of WASB applications. Currently, SBA is not forthcoming with any information. They do not respond to specific requests, nor provide regular reports and data that have been routinely provided in the past. This bill will ensure we have consistent information on one of the SBA's core missions, certifying small business federal contractors. Current and aspiring government contractors already face challenges in the federal market.
Unnecessary time or other hurdles just do not get a certification before they can even compete for contracting opportunities should not be one of them. I urge my colleagues to vote yes, and I yield back my time.
Speaker 1
General lady yields back. Thank you. I now recognize myself to speak in support of this legislation. As the Trump administration continues to focus on government efficiency and eliminate waste, fraud, and abuse within the federal programs, Congress needs the necessary information about where these programs are succeeding and where they need improvement. H.
8,879, the Oversight and Transportation or Transparency for Small Business Certifications Act of 2026 requires the SBA to annually report to Congress on certification activities across the SBA's small business contracting programs. This bill would provide Congress with detailed information and certification granted or denied, application processing times, and overall program participation. I urge my colleagues to vote yes on HR 8879, and I yield back. Now, does anyone wish to offer an amendment? Seeing none, the question now occurs on ordering HR 88 79 reported favorably to the house.
All those in favor, say aye. Aye. All those opposed, say no. I'm painting the chair. The ayes have it.
HR 88 79 is
Speaker 1
Recorded vote has been requested. A roll call vote is ordered. Pursuant to committee rule 13 and house rule 11, further proceedings on this bill are postponed. The committee now moves to consideration of HR 826, the COVID Fraud Transparency Act of 2025, introduced by representative Latimer and representative Bean, representative Mifumi, and myself, and the clerk will report the bill.
Speaker 1
The objection. The HR 826 is considered as red and open for amendment. I have an amendment, in the nature of a substitute, at the desk. The amendment has been distributed in advance. The clerk will report the amendment.
Speaker 1
Amendment will be considered as read and will serve as the base text for the purpose of further amendment. I now recognize myself for remarks on the bill and the amendment. First, I'd like to thank Representatives Latimer, Bean, and Mifumi for introducing this bill with me last year. The SBOA IG estimates that roughly $200,000,000,000 in potentially fraudulent relief funds were discharged through COVID-19 relief programs. Earlier this year, the SBA under the Trump administration referred more than 562,000 suspected fraudulent loans totaling approximately $22,000,000,000 to the treasury for further action, and that is a disturbing amount to anyone.
Even the five years following the pandemic, we are still working to highlight the need for continued transparency and oversight of fraud investigations and recovery efforts. HRE 26, the COVID Fraud Transparency Act of 2025, recognizes the importance of remaining responsive and informed as those cases continue to be investigated and resolved. By implementing more comprehensive reporting and oversight requirements, Congress can better understand the methods and categories of fraud that occurred during the pandemic, thereby strengthening the safeguards to protect taxpayer dollars in future emergency relief programs. I urge my colleagues to vote yes on HR 826. I yield back.
I now recognize Mister Latimer from the great state of New York to speak on the bill.
Speaker 8
Thank you, Mr. Chairman. And I want to express my appreciation for your leadership on this bill, along with colleagues, congress members, Bean and Fumi. This bill is a bipartisan effort to deal with the disbursement of SBA loan products, which we saw during the COVID-19 pandemic totaled $1,200,000,000,000 in economic injury disaster loan and paycheck protection program. Those are significant amounts of dollars that affected small businesses that were adversely impacted by the crisis. But as always, when there's any federal program, there are bad actors.
And so the SBA inspector general, in coordination with other federal agencies, has to work and investigate those cases of fraud and hold those bad actors accountable. This congress provides, in this bill, inspector generals with the funding and the resources necessary to combat fraud, and I'm very proud to co-lead this with chairman Williams and his leadership. This bill requires the SBA inspector general to issue quarterly reports to Congress on the number of borrowers engaged, and that will help us detect the fraud factors. I encourage my colleagues to support this common-sense bipartisan bill. And once again, thank the chairman and our ranking member, Nity Velasquez, for their leadership in this moment.
Mister chairman, I yield back.
Speaker 1
A gentleman yields back. Are there any other members who wish to be recognized for a statement? All right. Seeing none, I'd like to recognize the ranking member to speak on the bill.
Speaker 3
Thank you, Mr. Chairman. I appreciate your efforts alongside Mr. Lotimer to enhance reporting on pandemic fraud. The COVID Fraud Transparency Act will further enable this committee to carry out its oversight responsibilities effectively. During the global COVID-19 pandemic, the Small Business Administration stepped in and served as a critical lifeline to small businesses.
The SBA distributed more than $1,200,000,000,000 in economic aid and executed 14 years of lending in 14 days. In an effort to disburse funds quickly, SBA weakened and removed its internal controls. Organized crime syndicates, transnational gangs and other criminals exploited these weakened controls and stole billions from the American people. The legislation we are considering today will provide the committee with better data. H.
826 will require the SBA inspector general to send periodic reports to this committee for the next two years with detailed information regarding the number of fraud cases and the types of fraud, as well as the number of cases that have been resolved. In closing, I want to underscore the importance of continued oversight and transparency as we work to safeguard taxpayer resources and strengthen accountability. The single most effective way to combat fraud is to provide full funding for the inspector general so that he has the infrastructure he needs in order to conduct the type of oversight that is important and necessary. We don't know when the next pandemic will strike. We have to be ready, and we need to learn the lessons of the past.
I urge my colleagues to support HR 826 as amended, and I yield back.
Speaker 1
General, lady yields back, and thank you. And does anyone wish to offer an amendment? Seeing none, the question now occurs on the adoption of the amendment in the nature of a substitute to H.R. 826. All those in favor, say aye.
Speaker 1
All those opposed, say no. In the opinion of the chair, the ayes have it. The amendment in the nature of a substitute to HR 826 is adopted. The question now occurs on ordering HR 826's amendment to be reported favorably to the house. All those in favor, say aye.
All those posts say no. Independent chair of the ayes have it. And HR 826 is amended, is agreed to. Mister Tammond, I.
Speaker 1
Member asked for a recorded vote, and a recorded vote has been requested. Roll call, vote is ordered. So, pursuant to committee rule 13 and rule 11, further proceedings on this bill are postponed. The committee now moves to consideration of HR 8880, the Small Business Cybersecurity Assistance Evaluation Act of 2026 introduced by representatives Simon and Breznahan. The clerk will report the bill.
Speaker 1
Objection. HR 8880 is considered as read and open for amendment. I now recognize the fast-moving Miss Simon from the great state of California to speak on this legislation.
Speaker 5
Well, thank you, Chair. I cannot believe I made it. Thank you, also our ranking member Velasquez. And thank you to, congressman, my colleague, Breznahan, for coleading with me in this extremely important, I would say, critical bipartisan effort. I'm proud to speak in support of the small business cybersecurity assistance app.
You know, we know that small businesses are relying more and more on digital tools to reach customers and access capital. In fact, the United States Chamber of Commerce estimates that 99% of small businesses use at least one technology platform. And at the same time, cyber threats are becoming more sophisticated and damaging for the smallest businesses that are most likely to not be able to recover from these attacks. From phishing to ransomware, these attacks to insurance fraud and data breaches, small businesses are increasingly being targeted by bad criminal actors. For a small business owner, a single attack can mean not just lost revenue, but interrupted operations, or even closure.
We've seen this. Our bill is simple. It would direct the Government Accountability Office to conduct a comprehensive assessment of the cybersecurity threats and vulnerabilities facing our small businesses. The GAO would also identify existing federal programs, initiatives, and capital resources available to help entrepreneurs prepare for and mitigate and defend themselves every day against these attacks. Now this bill is about ensuring that we have the best data available to craft effective policies that protect small businesses from these attacks.
Small businesses drive innovation. They create jobs. I'm speaking to the choir here. And support communities in every corner of this country, especially as artificial intelligence continues to evolve. We must make sure that small businesses are not left behind, that they are not vulnerable, that they are equipped and ready to defend themselves.
And I wanna thank Chairman Williams and ranking member Velasquez for including this bill in today's markup and for their continued leadership on behalf of our country's small businesses. And I wanna thank you, and I urge all of my colleagues to support our important legislation. And I yield back, sir.
Speaker 1
The gentlelady yields back. Now I recognize Mister Breznahan from the great state of Pennsylvania to speak on this legislation.
Speaker 9
Thank you, Mr. Chairman, and thank you to the ranking member. I rise today alongside Representative Simon in support of the Small Business Cybersecurity Assistance Evaluation Act of 2026. This bipartisan legislation directs the GAO to study the effectiveness of existing federal cybersecurity assistance resources available to small businesses, and identify where improvements are needed. In the United States, small businesses are 210% more likely to experience cyber incidents compared to larger companies, a challenge Congress can no longer afford to overlook. By evaluating gaps in current federal programs, this bill will help ensure small businesses have better access to the tools, training, and resources they need to defend themselves against cyberattacks.
As cyber threats continue to evolve, our support system for small businesses must evolve as well. I strongly urge my colleagues to support this legislation. Thank you, Mr. Chairman. I yield back.
Speaker 1
Gentleman yields back. Are there any other members who wish to be recognized for a statement? Seeing none, I'd like to recognize the ranking member to speak on the bill.
Speaker 3
Thank you, Mr. Chairman. I thank representatives Simon and Breznahan for their leadership on this important issue. According to the U. S.
Chamber of Commerce, 99% of small businesses use at least one technology platform, with most using at least four. Yet only a quarter of small businesses use cybersecurity and malware detection tools. That is because small businesses lack the time, skills, and resources to adopt effective cybersecurity measures compared to their larger competitors. Cybercriminals are well aware of these vulnerabilities and exploit them at Main Street's expense. A single cyberattack could pose an existential threat to a small business.
The federal government has multiple cybersecurity resources for small businesses, but they are spread across agencies rather than provided by the expert in small business outreach, the SBA. The Small Business Cybersecurity Assistance Evaluation Act will direct the GAOs to study and report to Congress the state of federal small business cybersecurity assistance and make recommendations to optimize their impact and use by Main Street entrepreneurs. I urge all colleagues to vote yes. With that, I yield back.
Speaker 1
General Lady yields back. Thank you, and I now recognize myself to speak in support of this legislation. Small businesses are increasingly vulnerable to cybersecurity threats that negatively affect the business operations, profit margins, and reputation. From ransomware to fraud, bad actors have been targeted in Main Street, and yet many businesses lack the resources necessary to defend themselves. Many federal agencies have cybersecurity assistance programs, tools, and resources for small businesses, but these efforts are often difficult to navigate, underutilized, or outdated usually, and that is what HR 8,880 aims to address.
This bill will help expose where cybersecurity assistance is lacking. HR 8,880, the Small Business Cybersecurity Assistance Evaluation Act of 2026, directs the Government Accountability Office to evaluate the cyberattacks threatening small businesses and the effectiveness of federal programs in preventing them. Now this bill would also require the GAO to evaluate the effectiveness, coordination, and awareness of existing federal cybersecurity assistance programs for small businesses. The legislation takes a practical approach by evaluating what works and what does not, ensuring that small businesses have the tools and information needed to protect themselves. So I urge my colleagues to vote yes on HR 8880, and I yield back.
Does anyone wish to offer an amendment? Seeing none, the question now occurs on ordering HR 88 80 reported favor to the house. All in favor, say aye. Aye. All opposed, say no.
In the opinion of the chair, the ayes have it, and HR 88 80 is.
Speaker 1
Yes, sir. What purpose do you seek? Ask for a recorded vote. Members ask for a recorded vote, and a recorded vote has been requested. A roll call vote is ordered, and pursuant to committee rule 13 and house rule 11.
Further proceedings on this bill are postponed. The committee now moves to consideration of HR 88, 81, the SBA AI utilization act of 2026, introduced by representatives Finstead and Latimer. The clerk will report the bill.
Speaker 1
amend the court. H R 88 81 is considered as read and open for amendment. I now recognize Mister Finstead from the state of Minnesota to speak on this legislation.
Speaker 10
Thank you, Chairman Williams. I'm happy to speak today in support of my bill, the SBA artificial intelligence utilization act. I also serve on the ag committee, and AI on the ag committee means something very different. So I'm going to make sure I have my talking points right here for the SBA. The artificial intelligence and machine learning continue to revolutionize the way businesses conduct themselves, and it's important that the federal government, including the Small Business Administration, looks into the benefits that can be gained from incorporating these technologies.
There is an opportunity here. AI could be a useful tool for the SBA to improve its information processing capabilities, ease its administration, and better assist the entrepreneurs and small businesses of America. However, like any new technology, it raises questions about transparency, reliability, oversight, and risk. This bill will simply mandate that the SBA report to Congress annually about the use of AI and machine learning by the SBA, what benefits or risks may result from this technology, and how the SBA assesses the appropriateness, effectiveness, and the value of using these technologies. This is a common-sense oversight measure.
It does not mandate the use of AI, nor does it prohibit innovation. Instead, it ensures Congress has the visibility into these new tools that are being used, and whether they are helping the SBA better fulfill its mission for small businesses. As technology evolves, Congress has the responsibility to ensure federal agencies are using it responsibly, transparently, and effectively. This is a bipartisan bill, and I want to thank congressman Latimer for his work on this. I appreciate the committee's consideration of this bill, and I urge my colleagues to support it.
I yield back.
Speaker 1
And now I recognize Mister Latimer, from the great state of New York, to speak on this legislation.
Speaker 8
Thank you, mister chairman, and thank you, congressman Finnstad, for your leadership on this bill. It's a bipartisan common sense bill. It reflects that we as a nation are dealing with the growth of AI with potential uses that carry great benefit, potential benefit, and great potential risks. And there's questions of accuracy and data privacy that affect all of us, across the aisle, on both sides of the aisle. I'm pleased to co-lead this bill with Congressman Finnstaed under the leadership of Chairman Williams and then also Ranking Per Individual Nate, Nidia Velasquez.
This bill directs SBA to report on the steps the agency can take to identify and manage the benefits and risks posed by these AI use cases, and, we think this is an important step for our small businesses. I support the bill. I hope we all will support the bill. And, mister chairman, I yield back.
Speaker 1
Gentleman yields back. Are there any members who wish to be recognized for a statement? All right. Seeing none, I'd like to recognize the ranking member to speak on this bill.
Speaker 3
Thank you, Mr. Chairman. I commend representatives Finnstad and Latimer for their leadership on this bill. In October 2023, New York City launched a first-of-its-kind artificial intelligence chatbot. It was meant to answer the questions of entrepreneurs about opening small businesses, local small business services, regulatory compliance, and business planning and strategy. On day one, I spotted issues with the accuracy of the chatbots' outputs and their ability to answer questions.
In response, I led a letter to The White House urging the consideration of common sense safeguards in any AI tool used by federal agencies. Mr. Chairman, I ask unanimous consent to insert the letter into the record. According to an investigation by a local news outlet, my concerns were very real. The investigation determined that the chatbot was consistently hallucinating and encouraging small business owners to break laws and regulations, which led it to be shut down.
AI has the incredible potential to revolutionize the way the government works, but it also holds incredible risks. As the committee oversees the SBA, we have a duty to ensure the agency considers and uses these tools responsibly and effectively. This bill directs the SBA to report annually on its AI use, the benefits and risks, and effective risk-mitigation measures. With that, I urge all colleagues to vote yes, and I yield back.
Speaker 1
Thank you. I now recognize myself to speak on the bill. Businesses across the country are adopting artificial intelligence, which is reshaping how they operate, detect fraud, improve customer service, and process information. And there's no reason why the SBA cannot also benefit from these efficiencies. And the SBA artificial intelligence utilization act of 2026 is a forward-looking bill introduced by my colleagues, Representative Finstead and LatAmRHR881, requires the SBA's report on how it is using AI to modernize its technology and improve operations.
As the federal government works to prevent fraud and taxpayer dollars, AI tools can help the SBA better identify suspicious activity, detect proper payments, and strengthen oversight of the agency programs. By reporting the SBA's use of artificial intelligence, this bill will help promote a smarter, more efficient government, while supporting innovation, protecting taxpayers' dollars, and improving services for Main Street America. So I urge my colleagues to vote yes on HR 8881. I yield back. Does anyone wish to offer an amendment?
Seeing none, the question now occurs on ordering HR8881 reported in favor of the house. All those in favor, say aye. Aye. All those posts say no. In the opinion of the chair, the ayes have it.
HR
Speaker 1
Alright. A member has asked for a recorded vote. Recorded vote has been requested. A roll call vote is ordered. Pursuant to committee rule 13 and house rule 11, further proceedings on this bill are now postponed.
The committee now moves to consideration of HR 882, the Main Street Com Act introduced by representative Sculpton and Schmidt. The clerk will report the bill.
Speaker 1
No objection. HR 88 82 is considered as read and open for amendment. I now recognize Miss Sculpton from the great state of Michigan to speak on this legislation.
Speaker 11
Thank you so much, Mr. Chairman. I am so thrilled to speak in support of my bill, the Main Street Competes Act. While small businesses are the true powerhouses of our economy, they are often left to compete against a handful of large corporations. Without a level playing field, this can lead to higher prices for consumers and small businesses alike, not to mention an increase in predatory pricing and other exclusionary practices. When industry consolidation goes too far, innovation is stifled, and markets become difficult for small businesses to enter.
The price we all pay for unfair monopolistic conduct is real, and it needs to be addressed. My bill would do just that by directing the SBA's Office of Advocacy to work with the FTC and the Department of Justice to examine the gaps in our antitrust laws. Our office of advocacy is Main Street's voice within the federal government, and it's only right that they are in lockstep with our nation's top antitrust enforcement agencies. This bill will not only enhance collaboration between these agencies on behalf of small businesses, it will also require advocacy to submit a report to Congress detailing antitrust violations reported by small businesses. By ensuring Main Street has a seat at the table, we can build an economy that creates opportunity for everyone.
I wanna thank my colleague, Representative Schmidt, for working with me on this legislation. I strongly urge my colleagues to support this bill.
Speaker 1
Gentle lady yells back. I now recognize Mister Schmidt from the great state of Kansas to speak on this legislation.
Speaker 12
Thank you, mister chairman, and I want to thank my colleague for her long-standing leadership on this issue. I'm glad to join in this bipartisan effort this year. The only thing I would add to the conversation, I've worked a little bit on the antitrust enforcement side both under state law and also under federal law. And one of the things that's challenging is that these investigations and enforcement actions, when appropriate, they can be very resource intensive. And, historically, they are focused very much on consumer focused matters.
We don't want them to be less consumer focused, but we do want to recognize that small businesses are a critical player who have a stake in the outcome of antitrust enforcement and investigation decisions and in the deployment of scarce resources in those actions. And the reporting requirements in this bill will ensure that small business has a voice at the table, and that this committee and our colleagues have the information that we need to make appropriate policy judgments to be sure that those marketplaces that benefit all of us when they're competitive are properly served from the vantage point of small business as well as the vantage point of consumers and the vantage point of overall public policy and structured markets. So I want to thank my colleague for her work on this. Thank you, Mr. Chairman, for scheduling this, and I encourage all of our colleagues to support this measure.
I yield back.
Speaker 1
Gentlemen, yields back. Are there any other members who wish to be recognized for a statement?
Speaker 2
I wanna just say I wanna say that I strongly support this bill. I'm really grateful to my colleagues for their leadership on it. As someone who came to this committee from the Department of Justice where my job was to enforce our federal antitrust laws, this piece of legislation is near and dear to my heart. What I saw on the front lines of the fight to enforce these laws, which for far too long have not been enforced, is consolidation like never before. Across our economy, we see it from the big ag corporations who are screwing family farmers, the mega-merge grocery chains that are squeezing family-owned independent grocers.
I just sat with many of them a few minutes ago before this hearing. We see what consolidation is doing. And I am a proud capitalist, but I'm a capitalist who really believes that capitalism without competition is not capitalism. It is a form of exploitation that is making business impossible for small businesses. So this is a common sense bill, that really will fill gaps.
I wish that this bill had been law when I served in the justice department, because when you're in the federal executive branch, you can often be far too removed from the communities who you're proud to serve. And this is gonna create the connective tissue that we need between Congress and our antitrust enforcers. And ultimately, the connective tissue and the information flow that we need from small businesses who are on the front lines of this fight. So I thank my colleagues for their leadership on this bipartisan bill, and I urge all of our colleagues to support this. Thank you, and I yield back.
Speaker 1
Gentle lady yields back. Are there any other members who wish to be recognized for a statement? Alright. Seeing none, I'd like to recognize the ranking member to speak on this bill.
Speaker 3
Thank you, Mr. Chairman. For the last half century, agencies tasked with maintaining a competitive environment and a level playing field have neglected to enforce the laws on the books. As a result, our economy has grown increasingly consolidated. One study has found that 75% of the industry have become more concentrated since the mid-1990s.
Firms who garner market power often use that power against their competitors in the form of anticompetitive practices like price discrimination or self-preferencing. These practices increase the barrier to entry for small firms or use their software as a digital tool for accessing the markets. The SBA is a critical part of our nation's pro-competition toolkit, supporting small business creation and growth, but it cannot bolster small businesses alone. Strong antitrust enforcement has a real role to play in protecting a level playing field for small businesses. This bill makes perfect use of our office of advocacy, asking it to monitor the actions of other agencies and how their actions affect small businesses, while leveraging their economic analysis to help Congress understand the structural issues small firms face when competing in the market and developing recommendations for how we can address those issues.
I want to thank Representatives Skolton and Schmidt for their work on this bill. I encourage a yes vote, and I yield back.
Speaker 1
General, lady yields back. Thank you, and I now recognize myself to speak on this bill. Competition is a key tenet of capitalism. It allows consumers to choose with dollars between their business that will offer the best product, price, or service. Without appropriate competition, innovation in the U.
S. Economy will suffer. And HR 8,882, the Main Street Competition Act, aligns with the SBA's mission to preserve free competitive enterprise and strengthen the small overall economy of our nation by requiring the Department of Justice and the Federal Trade Commission to provide data on the SBA Office of Advocacy on antitrust complaints, investigations, and enforcement actions involving small business. It also detects advocacy to evaluate these trends and provide recommendations to Congress on ways to improve competition and address harmful anti-competitive conduct. This bill takes a targeted, data-driven approach to better understand those competitive pressures and determine whether current antitrust enforcement efforts adequately protect small businesses.
So this bill will ensure that policymakers have the information they need to support a competitive marketplace where Main Street businesses can grow and succeed. So I urge my colleagues to vote yes on HR 8882, and I yield back. Now, does anyone wish to offer an amendment? All right. Seeing none, the question now occurs in ordering HR 8,882 reported favorably to the House.
All those in favor, say aye. All those posts say no. In the opinion of the chair, the ayes have it, and with chairman. Member will seek recognition. What is it?
Speaker 1
A recorded vote has been requested. A roll call vote is ordered. Pursuant to committee rule 13 and house rule 11, further proceedings on this bill now are postponed. The committee now moves to consideration of HR 915, the Small Business Technical Act of 2025 introduced by representatives Alford, Lee, and Merbin, with representative McGarvey as the committee colead. The clerk will report the bill.
Speaker 1
small h r nine fifteen is considered as read and open for amendment. I now recognize Mister Alford from the great state of Missouri to speak on this legislation.
Speaker 13
Well, thank you, Mister Chair and Ranking Member. Thank you for excusing my absence from most of this. We've been across the hall in appropriations markup. This bill is very important to me. Small businesses are the backbone of our economy.
They create jobs, they strengthen local communities, and drive innovation across the country. But in today's economy, a small business cannot compete without access to modern technology and digital tools. Whether it's cloud-based accounting software, payroll systems, cybersecurity protections, inventory management platforms, or emerging AI tools. Technology is no longer a luxury for small businesses. It is essential to ensure that Main Street keeps up with Wall Street.
Unfortunately, mister chairman, under the SBA's flagship seven a lung program, there has been unnecessary ambiguity surrounding whether these types of tools qualify as eligible business expenses. And that uncertainty creates confusion for lenders and limits access to capital for entrepreneurs simply trying to modernize their operations. While I'm grateful that administrator Loeffler quickly amended the SBA standard operation procedure to add clarity to these products that are allowed. It is still important for Congress to do our job and to make sure that such clarity is done with the force of law. The Small Business Technological Advancement Act provides a simple, common sense fix.
Our legislation clarifies that SBA 7(a) loans may be used for business software, cloud computing services, and other technologies that facilitate business operations, including tools powered by artificial intelligence. This bill does not create a new program, and it does not increase the size or scope of the seven program. It simply updates SBA policy to reflect the realities of today's economy, and it gives small businesses the certainty they need to invest in the tools required to grow and compete. You
Speaker 13
For many main street businesses, technology adoption can mean the difference between expanding or falling behind. A small manufacturer may need software to improve logistics and inventory tracking. A local retailer may rely on cloud-based payment processing and cybersecurity tools. These are practical investments that help small businesses operate smarter and compete with larger firms that already have access to these resources. Quite simply, at the end of the day, this bill is about making sure that America's small businesses are not left behind in an increasingly digital economy.
And if we want small businesses to succeed, which we all do here, to create jobs, to remain competitive, we need to make sure that federal programs keep pace with modern business practices. So, mister chairman, I urge my colleagues to support this bipartisan legislation, and I look forward to continuing to work with this committee to advance it. Thank you so much, and I yield back.
Speaker 1
Gentleman yields back. I now recognize mister McGarvey from the great state of Kentucky to speak on this legislation.
Speaker 14
Thank you, Mr. Chairman. Thank you, mister chairman, ranking member Velasquez, for including this bill and for your support in this markup. You know, look, a lot has changed in the last 25 years. My kids have never seen a phone book. In fact, when they come here, one of the things they like to do is see the phones that are still in the cloak room because they're not used to seeing a landline either.
We can't pretend that technology is going to take over how we operate our businesses. Technology has taken over and changed how we operate our businesses. And what we have to do is make sure that the rules and regulations keep up with the technology. That's why I am proud to work with my friend, Congressman Alford from the great state of Missouri on this smart piece of legislation. The Small Business Technological Act is just a common sense step towards ensuring that small businesses are able to take on modern day problems with modern day solutions.
This bipartisan bill clarifies that small businesses may continue to use 7A loans to finance business software, cloud computing services, and other technologies that support their day-to-day operations. And I say continue because we wanna make sure they can continue to do this, because this works. We have seen how successful making technological programming and eligible use of funds in the seven a program has been, and I fully support this bill giving small businesses the certainty they need to continue doing so. Small businesses are the backbone of the American economy. If we want them to stay that way, then we're going to have to make sure we are doing what we can to put them in a position to succeed.
This bill continues to do that. It's why I support it. I encourage my colleagues to support it, and I yield back.
Speaker 1
Gentlemen, yields back. Are there any other members who wish to be recognized for a statement? Seeing none, I'd like to recognize the ranking member to speak on the bill.
Speaker 3
Thank you, Mr. Chairman. I just want to thank Alformaggary and Lee for their work on this matter and send a message to the financial institutions that partnered with SBA and SBA that their intent is clear. The seven loans can be used to finance digital tools. And with this change, it is my hope we will track an increase in its usage of digital tools. So I urge my colleagues to support this bill, and I yield back.
Speaker 1
Gentle lady yields back. I now recognize myself to speak on the bill. I'd like to thank my friend, representative Allford, for introducing this bill earlier this congress. From inventory and payroll to customer service and payment processing, modern business software is essential to the daily operation of Main Street businesses across the country. And HR915, the Small Business Technology Act of 2025, provides an incredibly important clarification and removes any ambiguity by explicitly permitting small businesses to use SBA 7(a) loans to purchase and upgrade technology systems and business software, including those that utilize artificial intelligence to support their daily operations.
This vital step to allow small business to fully utilize the SBA's flagship 7A loan program is another way to make sure that Main Street does not get left behind. This common sense clarification will provide Main Street with the financing needed to operate, modernize, and compete in the modern economy. So I urge my colleagues to vote yes on HR 915, and I yield back. Now does anyone wish to offer an amendment? Alright.
Seeing none, the question now occurs on ordering HR 915 reported favorably to the house. All those in favor, say aye. Aye. All those opposed, say no. In the opinion of the chair, the ayes have it, and H.R. 915 is agreed to.
Speaker 1
Recorded vote has been requested. A roll call vote is ordered, pursuant to committee rule 13 and House rule 11. Further proceedings on this bill are postponed. Committee now moves to consideration of HR 2804, the Protecting Small Business Competitions Act 2025, led by the ranking member and myself, and the clerk will report the bill.
Speaker 1
The HR 2804 is considered as read and open for amendment. The bill sponsor, ranking member Velasquez, has an amendment in the nature of a substitute at the desk. The amendment has been distributed in advance. The clerk will report the amendment.
Speaker 1
That objection, the amendment will be considered read and will serve as the base text for the purpose of further amendment. I now recognize the ranking member to speak on her legislation and the amendment.
Speaker 3
Mhmm. Thank you, Chairman Williams. I appreciate your work to reach an agreement on this bill. And thank you to Representative Cisneros and Chairman Williams for your support and efforts to move it forward. When the administration began a review of the government's procurements and regulations last year, retaining and codifying a critical small business requirement known as the Rule of became a top priority.
The Rule of Two is the foundation for small business participation in the industrial base. It is simple and effective. A contract must be set aside for a small business only competition if there is an expectation that small businesses will bid and can do the work. This long-established policy was put in place in recognition that small firms were required to compete against large corporations. It is unlikely they will ever win a contract.
With the rule of two in place, well over $100,000,000,000 is awarded annually to small businesses through contracts set aside for small business competitions. In fiscal year 2024 alone, 72,000,000,000 dollars was awarded through general small business set asides. That does not include contracts awarded through one of SBA procurement programs, which my legislation protects and enables. I want to be clear about why we need to pass my bill, and what it does and doesn't do. Small government contractors face an increasingly hostile federal marketplace.
As consolidation puts more opportunities out of reach for small firms, we need to have policies in place to ensure that contracts that can be performed by small businesses are actually awarded to small businesses. The Protecting Small Business Competition Act retains one of these key policies and puts into law a current regulatory requirement. It does not expand the rule of two past its current application. We do not require all contracts to be awarded based on competition or override mandatory sourcing, contracting officer discretion, choice of vehicle, and so forth. We are preserving the current process that triggers small business competition.
That is why there is strong support among the small business community. Hundreds of firms and organizations are urging support for my bill, and I ask unanimous consent to insert letters into the record, Mr. Chairman. When it was clear the rule of two was in jeopardy last year, the small business community rallied, made their voices heard, and secured its extension. We need to do our jobs now and codify it. I urge all my colleagues to vote yes, and I yield back.
Speaker 1
A gentlelady yields back. I now recognize myself to speak on this bill. For decades, the rule of two has been one of the most important safeguards to ensure small businesses can fairly compete in the federal marketplace and the industrial base. And for so many small businesses, especially service-disabled veterans, these contracting opportunities are critical to creating jobs, growing their business, and continuing their service to their country. H.
2,804, the Protecting Small Business Competitions Act, as amended, is a bipartisan bill that codifies the rule of two into law. To be clear, the rule of two was implemented in regulation over 40 years ago, and this bill does not change the current procurement process. It's an important point that I really want to highlight. And the Trump administration reaffirmed the importance of this policy for small businesses by preserving the rule of two in the revolutionary farm overhaul, restoring certain certainty back to small businesses that rely on it most. This bill guarantees that contracts above the simplified acquisition threshold must be set aside for small businesses whenever a contracting officer expects at least two qualified small businesses to compete.
This bill, as amended, mirrors the administration's effort to restore predictability for small businesses competing in the federal marketplace, and reserve opportunities for Main Street job creators, innovators, and veteran entrepreneurs. So over 340 small businesses and associations, including veterans and tribes, support this legislation. So as we move this bill to the house floor, I'm committed to working alongside the ranking member and all federal contractors to strengthen opportunities that small businesses have, ensuring outside organizations are not unintentionally impacted by this policy. Yes. Now I'd like to thank the ranking member for working with me on this bill and that to protect small business success.
I urge my colleagues to vote yes on HR 2804, and I yield back. Are there any other members who wish to be recognized for a statement?
Speaker 15
Thank you, Mr. Chairman. And I'm proud to stand with UN ranking member Velasquez and hundreds of small businesses and stakeholder groups across the country to safeguard small businesses and protect the right to compete for government contracts. I applaud the leadership and persistence of the ranking member towards codifying the rule of two. The rule of two gives small businesses a fighting chance and prevents large corporations from boxing them out of the competition. At a time when our industrial base is shrinking, it is exactly the type of bipartisanship that our small businesses need from Congress to support the continued access to and entry into the federal market and to compete for federal contracts.
We heard as much at our contracting and infrastructure subcommittee hearing, where one of the witnesses put it bluntly. It has been such a priority for our small businesses that I had to ask the SP administrator about it only the time she joined our full committee nearly a year ago. The advocacy of the small business community helped retain the rule of tool in the recent overhaul to the federal acquisition regulations. However, there is a four-year sunset provision that makes the future retention of the rule of tool less secure. That is why I urge my colleagues to support H.R. 2804 in codifying the rule of tool.
I yield back.
Speaker 1
Are there any other members who wish to be recognized for a statement? All right. Does anyone wish to offer an amendment to the amendment in the nature of a substitute? Seeing none, the question now occurs on the adoption of the amendment in the nature of a substitute to HR twenty eight zero four. All those in favor, say aye.
All those opposed, say no. Opinion of the chair: the ayes have it. The amendment, in the nature of a substitute to H. R. 2,804 is adopted.
The question now occurs on an ordering HR 24 as amended, to be reported favorably to the house. All those in favor, say aye. Aye. All those opposed, say no. In the opinion of the chair, the ayes have it.
Speaker 1
Ask for a recorded vote. A recorded vote has been requested, and a roll-call vote is ordered. Pursuant to committee rule 13 and house rule 11, further proceeds on this bill are now postponed. The committee now moves to consideration of HR 5498, the Small Business Health Options Awareness Act of 2024, introduced by representatives Van Dyne, Tenny, and Hearne, and the clerk will report the bill.
Speaker 1
The injection. HR 54 98 is considered as read and open for amendment. The bill sponsor, Miss Van Dyne, has an amendment in the nature of a substitute at the desk. The amendment has been distributed in advance. The clerk will report the amendment.
Speaker 1
50 amendments will be considered as read and will serve as the base text for the purpose of further amendment. I now recognize Miss Van Dyne to speak on her legislation and the amendment.
Speaker 16
Thank you very much, Mr. Chair. Small businesses drive innovation. They create jobs, and they strengthen communities across the country. But too often, they're forced to navigate a confusing and expensive health care system without clear information about all the options that are available to them. In North Texas, I regularly hear from small business owners who wanna provide quality health coverage for their employees, but they simply don't have the time or resources to sort through every possible option, while also trying to keep their businesses running.
And that's why the Trump administration's creation of individual coverage health reimbursement arrangements or ICRAs was such an important step forward. IQRAS give employers a flexible, tax-advantaged way to help employees purchase the health coverage that works best for them and their families. They reduce administrative burden on employers, they expand choice for workers, and they create a more modern and affordable approach to employer-sponsored coverage. The problem is not that they don't work. The problem is that many small business owners don't even know they exist.
So my bill, the Small Business Health Options Awareness Act, is a common-sense effort to fix that problem by ensuring that the Small Business Administration actively shares information about ICROS through its district offices, its small business development centers, websites, social media, and other outreach tools already used to communicate with job creators across the country. This legislation does not create a new program, a mandate, or a bureaucracy. It simply ensures that small businesses have access to information about an option that could help them provide more affordable and flexible health benefits to their employees. I hope my colleagues on both sides of the aisle can agree that small businesses deserve to know all the tools that are available to help them compete, grow, and support their workers. And I urge support for this legislation, and I yield back.
Speaker 1
General lady yields back. Are there any other members who wish to be recognized for a statement? Seeing none, I would like to recognize the ranking member to speak on the bill and speak on the amendment.
Speaker 3
Thank you, Mr. Chairman. Well, I agree with my colleagues that it's important to provide more information to small businesses so that they can better meet the health care needs of their workers. I unfortunately cannot support this legislation for a number of reasons. First, the bill would require the SBA and the SBDCs to distribute materials only on individual coverage, health, and reimbursement accounts often referred to as eCrafts. Over half of all Affordable Care Act marketplace employees are small business owners, employees, or self-employed.
By directing the SBA to provide information only on ICRAS, without requiring information on the ACI marketplace, creates a significant gap in the guidance available to small businesses. Many employers rely on the SBA and SBDC as a trusted resource, and presenting only one option risks limiting their understanding of the full range of choices. To make informed decisions, small businesses need a complete overview of all options available to them. With that said, needs fixing to truly offer quality health care. ECRS can be used by employers to discriminate against certain classes of workers by shifting older or sicker employees, for example, into the individual marketplace, which in turn raises premiums and increases overall risk.
A brokering institution analyst found that allowing employers to offer ICRAs along with a group health plan could increase premiums anywhere from 16% to 93%. And if an employee is offered an ICRA, they are not eligible for subsidized marketplace coverage unless their share of the premium is less than 10%. For many low wage workers, they will be better off without an IQRA. Put simply, it doesn't make sense. And even more baffling, this bill forces SBDCs to spread the word, while the president's budget eliminates their funding, and SBA refuses to pay them on time for services rendered.
The Colorado SBDC hasn't received their first quarter payment of $742,000, which is typically awarded in early February. Because of the delays, services have been cut, employees may be furloughed, and centers may close. Relying on SBDCs when they are being cut shows a clear lack of understanding of the entire situation at hand. Instead of pushing a partisan devices bill, we should be working together to conduct oversight of the SBA and ensure our resource partners are getting paid on time for the counseling services they provide. We can also work together to offer a comprehensive slate of health care information, to ensure employers and their workers can make informed decisions.
To truly help with the affordability crisis, every option should be provided to businesses, because doing so could mean the very survival of the operation, and doing so should be a shared priority. Unfortunately, this is not the case. Instead, the Trump administration is bilking taxpayers to bankroll a billion-dollar ballroom. And rather than lowering costs and making life better for small businesses, the Trump administration is making life harder and more expensive. They have ripped health care from millions, cut food assistance for kids, veterans and seniors, and raised prices on everything from groceries to utilities.
And let's not get started on the price of gas. Republican policies spike premiums during an ongoing affordability crisis, rip health coverage away from millions of Americans to pay for tax cuts for the rich. And this is your plan for health care? The bottom line, this is a messaging bill that won't accomplish anything. The SBA already has the authority to do it if it chooses.
In reality, it is just an opportunity for members to talk about health care and give the appearance of taking action. I urge my colleagues to know well and not yield back.
Speaker 1
Gentle lady yields back. Thank you, and I now recognize myself to speak on the bill and the amendment. One of the biggest challenges facing small business today is the rising cost of providing employee health care benefits. In the first Trump administration, individual coverage health reimbursement arrangements known as ICHRAs were made available to employers to offer flexible tax-advantage health insurance coverage by allowing them to reimburse employees for the cost of premiums for their individual health coverage. Offering flexible, affordable health care insurance plans will increase the attraction of small businesses when competing with larger companies for talent.
And even at the state level, lawmakers today are incentivizing small businesses to adopt ICHRIS. H. 5498, the Small Business Health Options Awareness Act is a common sense bill that enhances the Trump administration's efforts to expand affordable health care options to small businesses. By leveraging existing outreach programs to educate small business on how ICRAs offer competitive health benefits, this bill supports the administration's average to increase affordability in all sectors by giving employees of small businesses affordable health care options. I urge my colleagues to vote yes on H.
5,498, as amended, and I yield back. Does anyone wish to offer an amendment to the amendment on the nature of a substitute?
Speaker 1
There's an amendment at the desk. We will briefly pause while staff distribute the amendment. K. The clerk will report the amendment.
Speaker 1
Amendment considered as red. I now recognize Miss Sculpton from the great state of Michigan for five minutes on the amendment.
Speaker 11
Mister chairman, thank you so much. I couldn't agree more with your statements back home in Michigan too. The number one thing that I hear about when visiting from small businesses is their deep concerns over the costs of health care, especially employee provided health care. Finding the right health insurance can be incredibly complicated. Having the wrong health insurance is costly.
Small businesses should have access to every tool, every option available to them and their employees, so that there is no question that the Small Business Administration should be playing a role in educating business owners about their coverage. I like this idea. However, the approach taken in HR 5498, the Small Business Health Options Awareness Act, emphasis on options, is incomplete. The bill would require the SBA to provide information on one and only one health care option, the individual coverage health reimbursement accounts, or ICHRAs. Through ICHRAs, employers can reimburse their employees for qualified health care costs.
While this option may be useful for some employers, it's by no means a silver bullet to the larger problem within our health care system. For example, some individuals who may qualify for ICHRAs would be ineligible for other health care coverage such as the Affordable Care Act premium tax credits. By requiring the SBA to inform entrepreneurs about this option at the expense of other coverage plans, this bill pushes a program that won't work for many entrepreneurs. As a member of this committee, we're all too familiar with the pitfalls of a one size fits all approach, and we should be wary of legislation like this that stands no chance of addressing the diverse challenges that small businesses face. So let's do it.
Let's have the SBA inform small business owners of their options, all their options, when it comes to health care. And if this program is the best, if it's one that all the employers wanna choose, then there would be no problem. We'll see how great it is and undoubtedly how many will choose it. My amendment is simple. It would require the SBA to share information on health care options in general, without putting one particular plan over the other.
It's because our business owners deserve options that work best for their unique needs. And I think we all hear from businesses in our district that are struggling to care for their workers and sustain their operation. So let's focus our efforts on giving our small businesses the flexibility and the options that they need to choose what's best for them. I urge my colleagues to support this amendment, and I yield back.
Speaker 1
Gentle lady yields back. Is there further debate on the amendment? Miss Van Dyne, recognized for five minutes.
Speaker 16
I very much appreciate that. Again, you know, the amendment that is being put on the table basically guts my original bill by removing the entire focus on the ACRAs and replacing it with vague health care outreach language. Purpose of this legislation is to address a specific awareness gap for small businesses about the ACRAs, not to create a broad new health care communications mandate for SBA. ACA exchanges and Medicaid already receive extensive federal outreach and taxpayer-funded promotion. It's already happening, and it's been happening for years.
IQRs do not, which is exactly why this bill was introduced. I urge my colleagues to support the bill. I yield back.
Speaker 11
Mister chairman, I'd just like to add that if we're going to urge the SBA into a brand new arena of informing small businesses about their health care options, the bill's title needs to live up to its name and provide all of those options to small businesses. Currently, the SBA is not involved in informing their partners, their participants about health care options. Forcing it to only inform them about one option does not give them the full picture.
Speaker 3
I support Miss Colton's amendment. I think that is straightforward. Why are people so afraid of providing information and let the people that are going to be benefiting from it, their ability to make an informed decision by explaining what are the options that they have in front of them. Why do we have to push for only one option that could be, that will make some of them ineligible? So I ask my colleagues to support the amendment.
Thank you.
Speaker 16
Thank you very much. Miss Shulton, I'd be more than happy to entertain if you want to change the name of the bill. I would have loved to change the name of the bill of the Affordable Care Act, which was anything but, or the Inflation Reduction Act, which was anything but. So if you would like to, you know, support a different name for the bill, let me hear it. Thank you.
I yield back.
Speaker 11
Happens all the time. If the title is what you're concerned about, Miss Van Dyne, we can change it to the ICHRA Information Act, which would be a more apt description of what you're trying to do here. But I think the overall purpose of what you're trying to accomplish is actually noble. And as the number one issue that small businesses are struggling with right now, health care affordability, we absolutely should be encouraging the SBA to provide them with all the options. But that's not what this bill does, and so it's confusing.
It's misleading to our small businesses, and that's not what we should be in the business of doing. The amendment is very simple. Let's just provide it with all the options, and they can choose the best one for them. Thank you.
Speaker 15
I would just like to say, mister chairman, that I also support this amendment. And, again, if it is important for us to provide everybody with all the information possible on all the health care plans available. So why not? You know, if the SBA is gonna provide information on this, provide all the information that's out there possible to all the programs that are available. And with that, I support this amendment, and I yield back.
Speaker 1
Okay. Is there further debate on the amendment? Mr. Schmidt. Recognize Mr. Schmidt? No.
It's fine. Thank you. K. Is there further debate on the amendment? Okay.
Thank you, Miss Gulten, for offering an amendment to this legislation. However, I urge my colleagues to vote no on this amendment. I yield back. The question now occurs on the amendment offered by the gentlelady from Michigan. All those in favor, say aye.
Aye. All those posts say no.
Speaker 1
Recorded vote is requested. And a roll call vote is ordered. Further proceedings on the amendment and the bill are postponed. Are there additional amendments?
Speaker 1
There's an amendment at the desk. We will briefly pause while staff distribute the amendment. The clerk will report the amendment.
Speaker 1
Objection. Amendment is considered as read. I now recognize Doctor Morrison from the great state of Minnesota for five minutes on the amendment.
Speaker 17
Thank you very much, Mr. Chair. My amendment adds the requirement that when the Small Business Administration and Small Business Development Centers are publicizing or posting information about individual coverage health reimbursement arrangements, or ICHRAs, on their website, they must include a notice explaining to small businesses that ICHRAs may prevent employees from accessing premium tax credits under the Affordable Care Act marketplace for which they would otherwise be eligible. Small businesses and their employees should be provided with all pertinent information so they can make informed choices for themselves and their families. I wanna stress that many people receive worse health care coverage under ICHRAs, and that their use can make people ineligible for premium tax credits that can be used for more comprehensive and affordable coverage. Additionally, ICHRAs may lead to health care discrimination against certain employees and push other health care costs even further by adding higher-risk part-time and older employees to the exchange while reserving better health care options for top executives.
As a physician, I know how crucial having access to affordable health insurance is to keeping people healthy, and the overall integrity of our health care system. In addition to ICHRAs being an unproven creation of the Trump administration with little initial data to support the idea that they save costs, with the chaos and instability caused by the so-called One Big Beautiful Bill, insurance markets have been further destabilized, and premiums have skyrocketed, making ICHRAs an even less secure option for coverage. We should be working together to ensure that small businesses have access to information about all types of health care coverage, so they can make the choice that's best for them, not putting them at greater risk for inadequate coverage. I urge my colleagues to vote in favor of this amendment to ensure the Small Business Administration is providing small businesses with the relevant information they need to make informed decisions about their health care coverage. Thank you, Mr. Chair.
I yield back.
Speaker 1
Gentle lady yields back. Is there further debate on the amendment? Now recognize Miss Van Dyne from Texas for five minutes.
Speaker 16
Thank you very much, Mr. Chairman. This amendment is one-sided and extraordinarily misleading because it highlights only potential subsidy impacts while ignoring the benefits of employer-sponsored coverage, flexibility under ACRIS. It also implicitly pushes employees toward remaining on subsidized ACA coverage instead of employer-supported coverage options. Further, ACA premium subsidies have been repeatedly identified as vulnerable to improper payments, eligibility issues, and fraud. Congress, GAO, and the HHS OIG have all raised concerns about inefficient income verification and improper enrollment practices within the ACA subsidy structure.
Rather than helping small businesses offer coverage, this amendment appears focused on steering individuals toward taxpayer-funded ACA subsidies, a system that has faced repeated concerns over improper payments, eligibility issues, and fraud. I urge my clients not to support this amendment, and I yield back.
Speaker 1
General A is back. Is there any further debate on the amendment? I now recognize the ranking member from New York, Miss Velasquez, for five minutes.
Speaker 3
No one can deny in this committee that small businesses are struggling with the rising cost of health care if they can provide it. And this is a crisis that has been manufactured by this administration, by enacting the policies that they have implemented. So small businesses and their employees are struggling with health care costs. And with this, affordability crisis. Small businesses and their employees need all the pertinent information.
They need to know that their employees could be worse off with an ICHRA. And they need to know that their use could make them ineligible for the premium tax credit that will provide more generous and affordable coverage. By directing SBA to provide information only on ICRAs, while failing to disclose that accepting an ICRA could make them ineligible for premium tax credit, is misleading and, quite frankly, problematic. Omitting that information risks steering small businesses away from coverage options that might be more affordable and generous. That is why I strongly support the amendment offered by my colleague, Doctor.
Morrison, which will require SBA to include a notice explaining that individuals may lose access to the premium tax credits in the marketplace. I urge all my colleagues to support it. I yield back.
Speaker 1
Gentle lady yields back. Is there further debate on the amendment? Alright. Seeing none, I'd like to recognize myself in this amendment. I appreciate doctor Morrison's amendment to this legislation.
I always urge my colleagues to vote no. I yield back. Now the question occurs on the amendment offered by the gentlelady from Minnesota. All those in favor, say aye.
Speaker 1
Member request recorded vote has been requested, and a roll-call vote is ordered. Further proceedings on the amendment in the bill are postponed, and are there any additional amendments to the amendment in the nature of a substitute to HR 5,498?
Speaker 1
Seeing none, that concludes the consideration of legislation for today's markup.
Speaker 1
A recorded vote is requested. And the committee will stand in recess. Why? Why? Why?
What do we do?
Speaker 1
Be gone. Okay. The committee will stand in recess, subject to the call. The chair of members, please return at 4:05 to resume consideration of the bills and amendments on which roll call votes were requested and postponed. Yeah.
I wanna take a point of personal privilege before we get started. The ranking member and I have been talking about moments that sometimes don't come out right. And I had one of those today trying to say the word ambiguity. Still can't say it. And it reminded me of a story about Lyndon Johnson when he was president, had a young girl from the University of Texas write his first State of the Union speech.
And he, as he was reading through it, he would say, honey, people aren't gonna know what that word means. And he'd crossed through it, or he couldn't say it. And every time he put the x on the word he couldn't say, he would say, my dear old daddy said. So I had my dear old daddy said moment today. And just try it and see if you join the club.
But in ambiguity, I got it. That's good. Okay. All right. This team, this committee will now come to order.
We'll resume consideration of the bills in which roll call votes were requested and postponed. We will begin with HR 4,238. The question now occurs in ordering H.R. 42 38 as amended, reported favorably to the House. The clerk will open the vote. Oh, there we go.
Right? Yeah. And where do I hit it?
Speaker 1
Am I good? You make sure. Are there any members who have not voted or wish to change their vote? If not, the clerk will close the vote, and the clerk will report.
Speaker 1
Motion agreed to in H.R. 4238 is amended and will be reported favorably to the House. Question now occurs in order in H.R. 8879, reported favorably to the House. The clerk will open the vote. And we're green. Right?
Are there any other members who have not voted or who wish to change their vote? If not, the clerk will close the vote, and the clerk will report.
Speaker 1
K. The motion is agreed to in HR 8879 will be reported favorably to the house. Question now occurs in ordering HR 28 26 as amended, reported favorably to the house. The clerk will open the vote. Are there any members who have not voted or who wish to change their vote?
If not, the clerk will close the vote, and the clerk will report.
Speaker 1
The motion is agreed to, H.R. 826 as amended will be reported favorably to the House. The question now occurs in order in HR 88 88 reported favorably to the house. The clerk will open the vote. Are there any members who have not voted or wish to change their vote? Okay.
Mister who? If not, the clerk will close the vote. What?
Speaker 1
Besides Allford, who've not voted or would not change their vote? Okay. If not, the clerk will close the vote. The clerk will report.
Speaker 1
The most agree to do, and HR 88 will be reported favorably to the house. Question now occurs in ordering HR 8881 reported favorably to the house. The clerk will open the vote. Are there any other members who have not voted or who wish to change their vote? If not, the clerk will close the vote, and the clerk will report.
Speaker 1
And the motion is agreed to, and H.R. 8881 will be reported favorably to the House. Question now occurs on ordering H.R. 8882 reported favorably to the House. The clerk will open the vote. Are there any other members who have not voted or who wish to change their vote? If not, the clerk will close the vote and the clerk will report.
Speaker 1
The motions agreed to in HR 882 will be reported favorably to the house. Question now occurs on ordering HR 9:15 reported favorably to the house. The clerk will open the vote. Are there any other members who have not voted or who wish to change their vote? If not, the clerk will close the vote, and the clerk will report.
Speaker 1
The motion is agreed to in HR 9:15. We'll report it favorably to the House. The question now occurs on order HR 2804 as amended, reported failure to the house. The clerk will open the vote. Are there any other members who have not voted or who wish to change their vote?
If not, the clerk will close the vote. The clerk will report.
Speaker 1
Alright. The motion is agreed to an HR 28 to 4. As amended, we reported favorably to the House. Okay. We will now take the proposed votes on H.R. 5498.
Okay. The question is on the adoption of the amendment to the amendment in the nature of the substitute offered by Miss Sculpton to H.R. 5498. We'll report the vote. I'm sorry. We'll open the vote.
It's too late. Wake up. It's too late. Okay. Are there any other members besides Cisneros who have not voted or who wish to change their vote?
If not, the clerk will close the vote, and the clerk will report.
Speaker 1
Okay. The amendment is not agreed to. The question is on the adoption of the amendment to the amendment in the nature of a substitute offered by Doctor Morrison, to H.R. 5498. The clerk will open the vote. We're good.
Are there any other members who have not voted or who wish to change their vote? If not, the clerk will close the vote and report.
Speaker 1
Are you sure? You wanna recount? I mean, you nobody's voting over there on your side. The amendment is not agreed to. Okay.
The question now occurs on the adoption of the amendment in the nature of a substitute offered by representative Van Dyne to HR 5498. Yes. All those in favor, say aye. Aye. Opposed to all those, say no.
The opinion of the chair of the ayes have it. The amendment in the nature of a substitute to HR 5498 is adopted. Now the question is now unfavorably reporting HR 5498 as amended to the house. All those in favor, say aye. Aye.
All those opposed, say no. No. In the opinion of the chair, the ayes have it, and H.R. 5498 as amended.
Speaker 1
Okay. A recorded vote has been requested. A roll call vote is ordered. The clerk will open the vote. Are there any other members who have not voted or who wished to change their vote?
If not, the clerk will close the vote, and the clerk will report.
Speaker 1
Alright. The motion agreed to an HR 5498 as amended will be reported favorably to the house. That's it?
Speaker 1
Yet. If there's no further business, this concludes today's markup. Without objection, the committee staff has authorized to make technical and conforming changes, and members have two business days to file additional supplemental dissenting minority views. I wanna thank all of you for being here today. Without objection, we live in the greatest country in the world.
The committee stands adjourned.
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