Proposed Changes to Women-Owned Business Contracting

On April 27, 2026, two companion bills were introduced in the Senate and the House: Ending Discrimination in Government Contracting Act (S.4390 and H.R. 8511).

This proposed legislation has brought new attention to programs that set aside contract opportunities for certified women-owned small businesses.

For many entrepreneurs, delving into federal contracting can feel like entering another world. There are certifications and agency requirements and processes that aren’t what some are used to.

The Women-Owned Small Business program (WOSB) is administered by the U.S. Small Business Administration (SBA). It allows certain federal contracts to be competed on only among certified women-owned small businesses and only under certain conditions. That does not mean that all government contracts are reserved for women-owned businesses. In fact, most aren’t.

A WOSB set-aside is only available under the following conditions:

• the industry falls within SBA-designated categories where women-owned businesses have been noted to be underrepresented,
• the agency assigns that classification to the contract,
• market research supports that qualified firms are available,
• the contracting officer chooses that procurement route.

Even then, certified businesses still compete and must meet the proposal requirements including price and performance.

Supporters of the legislation believe there should be one standard with no distinctions on the basis of race or sex. They contend that with these restrictions removed, the procurement process would be simplified, the reporting requirements would be reduced, and there would be a greater competition for contracts.

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Others see WOSB and programs like them as a positive in that they help women-owned businesses access opportunities they may not otherwise have. They see the tracking as a way to ensure participation. From their perspective, loss of programs like WOSB will result in fewer entry points for newer businesses as competition from larger companies increases.

As of the writing of this article, this legislation has been introduced but has not become law. Existing certification programs are still in place.

For women entrepreneurs, the most practical takeaway may simply be to stay informed, understand how the process of certification works, and be aware of the opportunities available through federal contracting. And at the same time, be attentive to the legislative changes that could affect the future of how this program works.

Additional information:

This article focused on how the legislation could affect women-owned businesses. But this legislation also includes other contracting-preference programs and reporting requirements. As with all we do – the best place for us to start is to be informed.

Members interested in learning more can explore:

• SBA: WOSB Federal Contract Program: https://www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal-contract-program
• MySBA Certifications Portal: Applying for/Managing WOSB Certifications: https://certifications.sba.gov/
• SBA: Federal Contracting Assistance Programs https://www.sba.gov/federal-contracting/contracting-assistance-programs
• System for Award Management (SAM) https://sam.gov/
• Ending Discrimination in Government Contracting Act:
• H.R. 8511: https://www.congress.gov/bill/119th-congress/house-bill/8511/text?s=1&r=1&hl=hr+8511
• S. 4390: https://www.congress.gov/bill/119th-congress/senate-bill/4390/text?s=2&r=4&hl=s+4390

Barbara J. Bozeman
Chair Entrepreneur & Small Business
smallbusiness@nfbpwc.org