Countering Hate Against Israel by Federal Contractors Act
Sponsors
Legislative Progress
In CommitteeMs. Tenney (for herself, Ms. Stefanik, Mr. Steube, Mr. Lawler, …
Summary
What This Bill Does
This bill prohibits federal agencies from awarding contracts over $100,000 to companies that participate in boycotts of Israel. Starting January 1, 2026, companies seeking federal contracts must certify they are not boycotting Israel, and all contracts must include provisions barring such boycotts during the contract term. If a company is found to be violating this prohibition, the agency must publicly disclose the violation and terminate the contract within 30 days unless the company ends its boycott.
Who Benefits and How
Companies doing business with or in Israel benefit directly, as this bill removes competitors who boycott Israel from the federal contracting marketplace. Israeli companies and entities gain increased commercial opportunities as U.S. federal contractors are incentivized to maintain or establish business relationships with Israel to remain eligible for lucrative government contracts. Federal contractors who do not engage in Israel boycotts also benefit from reduced competition for federal contracts, as companies with ethical investment policies regarding Israeli settlements or those participating in boycott movements are excluded from bidding.
Who Bears the Burden and How
Companies that engage in boycotts of Israel for political, ethical, or religious reasons face exclusion from all federal contracts exceeding $100,000, representing a significant loss of business opportunities in a market worth hundreds of billions of dollars annually. All federal contractors, even those not engaged in boycotts, must bear new compliance burdens including certifying their non-boycott status, monitoring their business practices, and ensuring ongoing compliance throughout contract performance. Federal procurement offices must implement new administrative procedures to collect certifications, monitor compliance, investigate violations through public reports or congressional notices, publicly post violation notices on agency websites, and manage contract termination processes.
Key Provisions
- Requires companies to certify they are not engaging in boycotts of Israel at the time of contract award for all contracts over $100,000 starting January 1, 2026
- Mandates inclusion of anti-boycott clauses in all covered federal contracts prohibiting companies from engaging in Israel boycotts during the contract term
- Establishes a notification and public disclosure system where agencies must post violation notices on their websites within 30 days of determining a company violated the prohibition
- Provides for automatic contract termination 30 days after violation notice unless the company ends its boycott to the agency's satisfaction
- Defines "engaging in a boycott of Israel" broadly to include actions taken in compliance with boycott calls, discriminatory actions based on nationality or religion, or actions not based on valid business reasons
- Includes a savings clause stating the Act does not infringe on First Amendment rights or take a position on Palestinian-Israeli conflict issues
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Prohibits federal agencies from contracting with companies that engage in boycotts of Israel, requiring certification and including contract termination provisions for violations
Policy Domains
Legislative Strategy
"Use federal procurement power to discourage participation in boycott, divestment, and sanctions (BDS) movements targeting Israel by creating compliance requirements and contract termination mechanisms"
Likely Beneficiaries
- Companies doing business with Israel or in Israeli territories
- Israeli government and Israeli-based businesses
- Federal contractors who do not engage in boycotts of Israel
- Pro-Israel advocacy groups
Likely Burden Bearers
- Companies that engage in boycotts of Israel for political, ethical, or religious reasons
- Federal contractors required to certify non-boycott status and maintain compliance
- Federal procurement offices required to implement certification, monitoring, and enforcement procedures
- Companies facing potential contract termination and reputational damage from public notice of violations
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "company"
- → Any business entity with more than 10 employees seeking federal contracts over $100,000
- "the_head_of_a_federal_agency"
- → Head of any Federal agency (all executive departments and agencies)
Key Definitions
Terms defined in this bill
Any organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, or other entity or business association, including all wholly owned subsidiaries, majority-owned subsidiaries, parent companies, or affiliates of those entities or business associations (but not including an individual or sole proprietorship or individuals) with more than 10 employees
A contract in excess of $100,000
Engaging in an action (including a refusal to deal or an action to terminate a business activity) that is intended to limit commercial relations with Israel, a person doing business in or with Israel, or authorized by, licensed by, or an entity organized under the laws of the State of Israel to do business, when such actions are taken in compliance with or adherence to calls for a boycott of Israel; or in a manner that is in any way discriminates on the basis of nationality, national origin, or religion or not based on a valid business reason; and includes a statement of the company that the company is participating in such action or has taken such action at the request with, in compliance with, or in furtherance of calls for such action
An instrumentality of the Government of the United States, or any political subdivision thereof, including all boards, commissions, agencies, institutions, authorities, corporations, and bodies politic of the Federal Government, established by or in accordance with Federal law or regulations
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology