Huffpost Business

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors

Lloyd Chapman Headshot

New York Congresswoman Backs Bill to Bring Billions in Contracts to State

Posted: Updated:

New York Congresswoman Carolyn Maloney (D - 14) has offered her support for legislation that would infuse the state's business community with billions of dollars in existing government infrastructure spending, save thousands of small businesses and create countless jobs.

H.R. 2568, the Fairness and Transparency in Contracting Act would end widespread fraud and abuse in federal small business contracting programs, while ensuring that the federal government meets its 23 percent small business contracting goal. The federal government has a congressionally mandated goal of awarding 23 percent of the total value of all prime contracts to small businesses.

"I admire the American Small Business League's efforts to make sure that small businesses get their fair share of federal contracts. Since small firms are the engine of our economy, this mission could not be more timely or more necessary," Representative Maloney said. "I look forward to working with the American Small Business League and my friend and colleague Congressman Johnson to make sure that the Fairness and Transparency in Contracting Act becomes law."

Since 2003, over a dozen federal investigations have shown that billions of dollars in federal small business contracts have been diverted to corporate giants. In Report 5-15, the Small Business Administration Office of Inspector General (SBA IG) referred to the problem as, "One of the most important challenges facing the SBA and the entire Federal government today."

H.R. 2568 will stop large businesses from taking federal small business contracts by perfecting the Small Business Act's definition of a small business as "independently owned." The bill would prevent the federal government from awarding small business contracts to publicly traded firms, because they are publicly owned and would not qualify as "independently owned."

According to the U.S. Census Bureau, small businesses are responsible for more than 90 percent of all net new jobs, 50.2 percent of the non-farm private sector workforce, 50 percent of the gross domestic product (GDP) and 90 percent of exports and innovations.

The American Small Business League has estimated that if passed H.R. 2568 would redirect more than $100 billion a year in federal spending to the nation's 27 million small businesses.