Skills-Based Federal Contracting Act of 2025
Summary
What This Bill Does
This bill adds a new title 41 rule on contractor education requirements. A federal solicitation may not require proposed contractor personnel to meet a minimum education requirement unless the contracting officer includes a written justification explaining why the agency's needs cannot be met without that requirement and how the requirement ensures those needs are met. The bill defines education to include associate, baccalaureate, graduate, or professional degrees, specified coursework, or other collegiate educational attainment.
OMB must issue guidance within 180 days for agency heads and contracting officers. That guidance must include instructions for determining, justifying, and reviewing each use of an education requirement and must encourage alternatives to education requirements. The rule applies to solicitations issued 15 months after enactment. A related defense acquisition education rule implemented in FAR subpart 39.104 is repealed when the OMB guidance becomes effective. GAO must evaluate executive agency compliance within three years.
Who Benefits and How
Skilled workers without college degrees benefit because federal contractors can compete with them more easily when degree requirements are not justified. Federal contractors using skills-based hiring benefit from fewer categorical education screens in solicitations. Small federal contractors benefit if they can propose experienced personnel without losing eligibility over degree language. Contracting agencies benefit from a broader labor pool and a documented process for using education requirements only when needed. OMB procurement policy staff benefit from clear authority to standardize guidance across agencies.
Who Bears the Burden and How
Federal contracting officers must write, determine, justify, and review education requirements when they use them. Executive agency procurement offices must update solicitation templates and train staff. OMB must issue implementation guidance within 180 days. GAO must evaluate agency compliance after three years. Contractors that market degree-heavy staffing models may lose an advantage in competitions. Colleges and credentialing programs may lose some federal contracting leverage if solicitations shift toward skills and experience alternatives.
Key Provisions
- Prohibits minimum education requirements for proposed contractor personnel unless justified in writing.
- Requires justifications to explain why agency needs cannot be met without the education requirement.
- Directs OMB to issue implementation guidance within 180 days.
- Requires OMB guidance to encourage alternatives to education requirements.
- Delays application to solicitations issued 15 months after enactment.
- Repeals the related FAR education rule when OMB guidance becomes effective.
- Requires GAO to evaluate agency compliance after three years.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Limits federal solicitations from using minimum education requirements for proposed contractor personnel unless contracting officers provide written justifications, requires OMB implementation guidance within 180 days, delays application for 15 months, repeals a related FAR education rule after guidance takes effect, and requires a GAO compliance evaluation after three years.
Key Policy Areas
Government Operations, Procurement, Labor, Education
Primary Purpose
Limits federal solicitations from using minimum education requirements for proposed contractor personnel unless contracting officers provide written justifications, requires OMB implementation guidance within 180 days, delays application for 15 months, repeals a related FAR education rule after guidance takes effect, and requires a GAO compliance evaluation after three years.
Policy Domains
House resolution provisions
Identified Gains
- Skilled workers without college degrees
- Federal contractors using skills-based hiring
- Small federal contractors
- Contracting agencies
- OMB procurement policy staff
Identified Costs
- Federal contracting officers
- Executive agency procurement offices
- OMB guidance staff
- GAO evaluators
- Degree-heavy contractors
- Colleges
- Credentialing programs
Sponsors
Legislative Progress
ReportedReceived in the Senate and Read twice and referred to …
Received; read twice and referred to the Committee on Homeland …
Motion to reconsider laid on the table Agreed to without …
Passed/agreed to in House: On motion to suspend the rules …
DEBATE - The House proceeded with forty minutes of debate …
Mr. Timmons moved to suspend the rules and pass the …
Considered under suspension of the rules. (consideration: CR H2247-2248)
Motion to reconsider laid on the table Agreed to without …
Ordered to be Reported (Amended) by the Yeas and Nays: …
Committee Consideration and Mark-up Session Held
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Federal contracting officers, GAO evaluators, OMB guidance staff
Positive-direction: Small federal contractors
Negative-direction: Federal contracting officers, GAO evaluators, OMB guidance staff
Degree-heavy contractors, Federal contractors using skills-based hiring, Skilled workers without college degrees
Positive-direction: Federal contractors using skills-based hiring, Skilled workers without college degrees
Negative-direction: Degree-heavy contractors
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "gao"
- → Government Accountability Office
- "omb"
- → Office of Management and Budget
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