H.R. 2989: Time to Choose Act of 2025

This legislation, known as the "Time to Choose Act of 2025," aims to prevent conflicts of interest among consulting firms that work with both the United States government and certain foreign entities, specifically those that may pose a national security threat. The bill establishes regulations that consulting firms must follow to ensure that they do not simultaneously provide services to the U.S. government while working for these foreign entities.

Key Provisions

• Consulting Services Definition: The bill defines consulting services as advisory services and prohibits firms from engagement in such services with both federal agencies and designated foreign governments or associated entities.
• Prohibition on Contracting: The legislation requires that any consulting firm intending to contract with the federal government must certify that it, as well as its subsidiaries and affiliates, do not have contracts with specified foreign entities. If a firm is found to have such contracts, it will be ineligible for federal contracts.
• Waivers: Although the bill establishes a prohibition on dual contracting, it allows for waivers under certain conditions deemed necessary for national security. These waivers can only be granted by the head of the relevant executive agency and must be reported to Congress.
• Reporting Obligations: Contractors who receive a waiver are obligated to report any human rights violations or risks to U.S. national security that arise during project execution.
• Penalties for False Information: If a consulting firm submits false information regarding its contracts or affiliations, the head of the executive agency has the authority to terminate their contracts and may impose further penalties, including suspension from future contracting opportunities.

Definitions of Covered Foreign Entities

The term "covered foreign entity" refers to a number of entities, including:

• The Government of China, including its Communist Party and military.
• The Government of Russia and entities sanctioned under specific U.S. laws.
• Any foreign government associated with terrorism or listed by the U.S. Treasury as a threat.

Implementation Timeline

The Federal Acquisition Regulatory Council is tasked with amending current regulations to include these new provisions within one year of the law's enactment.

Funding Provisions

The act does not allocate any additional funding for its implementation, implying that existing resources should be used to carry out the requirements of the law.

Relevant Companies

None found