HR3050-119

What This Bill Does

The Countering Hate Against Israel by Federal Contractors Act applies an anti-boycott condition to federal contracts over 100,000 dollars. After January 1, 2026, a federal agency head may not enter a covered contract unless the company certifies at award that it is not engaging in a boycott of Israel, and each covered contract must prohibit such a boycott during the contract term. Solicitations must include written notice of the prohibition. If an agency head determines through a public report or notice from Congress that a company violated the contract prohibition, the agency must notify the company and publish notice on the agency website within 30 days. Thirty days after company notice, the agency must terminate the covered contract unless the company ends the boycott to the agency head's satisfaction. Contract Disputes Act appeals apply. The bill defines company to include business entities with more than 10 employees and affiliates, defines covered contract as more than 100,000 dollars, defines boycott of Israel by refusal-to-deal or business-termination actions tied to boycott calls, discriminatory grounds, or lack of valid business reason, and says nothing infringes First Amendment rights or takes a position on final Israeli-Palestinian status issues.

Who Benefits and How

Israel-linked businesses benefit because federal contractors must certify they are not limiting commercial relations with Israel or qualifying Israel-related persons. Federal contractors that do not boycott Israel benefit from clearer eligibility for covered contracts after January 1, 2026. Federal agency procurement officials benefit from a statutory certification and cure process for boycott-related contract violations. Congressional oversight staff benefit because public reports or congressional notices can trigger agency determinations.

Who Bears the Burden and How

Companies with more than 10 employees that boycott Israel can lose access to covered federal contracts over 100,000 dollars. Federal agencies must add solicitation notices, collect certifications, make determinations, post violation notices, and terminate uncured contracts. Contracting officers must evaluate whether a boycott action lacks a valid business reason or discriminates based on nationality, national origin, or religion. Companies accused of violations may need to use chapter 71 contract appeals to contest agency actions.

Key Provisions

• Bars covered federal contracts with companies that do not certify they are not boycotting Israel after January 1, 2026.
• Requires covered contracts to prohibit boycotts of Israel during the contract term.
• Directs agencies to publish violation notices and terminate contracts after a 30-day cure window.
• Applies Contract Disputes Act appeals to affected contracts.
• Defines covered contracts, covered companies, and boycott conduct while preserving First Amendment and final-status caveats.