"Ernst Introduces Bill To Halt Fraud-Filled SBA Program"
Summary
A release dated November 17, 2025 stating that Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) is introducing the Stop 8(a) Contracting Fraud Act, following allegations of a $100 million fraud scheme in the Small Business Administration's 8(a) program. The release states that the bill would halt all new no-bid awards until a detailed audit of the entire program is conducted. It says Ernst had called for major reforms and faults the Biden administration for tripling the program's funding goals. Ernst is quoted saying the 8(a) program "is broken and needs to be completely reformed." A background section states that in June the Department of Justice found the 8(a) program was used to facilitate a $550 million bribery scheme and that four men pled guilty to the charges.
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Full text
Title: Ernst Introduces Bill To Halt Fraud-Filled SBA Program Date: 2025-11-17 Ernst Introduces Bill To Halt Fraud-Filled SBA Program November 17, 2025 Read the release on Sen. Ernst's website HERE. 8(a) program is under investigation after evidence of $100 million fraud. WASHINGTON – Following allegations of a $100 million fraud scheme in the Small Business Administration’s (SBA) 8(a) program, Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) is introducing the Stop 8(a) Contracting Fraud Act to halt all new no-bid awards until a detailed audit of the entire program is conducted. The new legislation comes after Ernst called for major reforms and to assess the damage done by the Biden administration opening the floodgates to fraud by tripling the funding goals of the program that provides billions to “socially and economically disadvantaged businesses.” “The 8(a) program is broken and needs to be completely reformed before another dollar goes out the door,” said Ernst. “I will not allow taxpayers to be defrauded of hundreds of millions of dollars because the Biden administration invited con artists to have a free-for-all. It is common sense that SBA programs should help small businesses, not serve as a personal piggy bank to criminals.” Click here to view the bill. Background: In June, the Department of Justice found that the 8(a) program was used to facilitate a $550 million bribery scheme over several decades. Four men, including a government contracting officer at the United States Agency for International Development, pled guilty to the charges. ### Permalink: https://www.sbc.senate.gov/public/index.cfm/2025/11/ernst-introduces-bill-to-halt-fraud-filled-sba-program
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