ETHICAL Procurement Act

HR 6689, the ETHICAL Procurement Act, prohibits the U.S. Secretary of Defense from entering into, renewing, or extending defense contracts with entities that have specific ties to certain government officials or their immediate family members. It blocks contracts if an entity’s officer, director, partner, or majority owner holds a position appointed by the President (with Senate approval), serves in a confidential/policy role under Schedule C, is a special government employee, or is in the Senior Executive Service. The bill also prohibits contracts if an immediate family member (parent, child, sibling, spouse, or domestic partner) of such an official owns a significant stake in the entity or would gain substantial financial benefit. The Secretary of Defense must issue implementing regulations within 30 days of the bill’s enactment. This directly affects defense contractors with leadership connected to high-level government roles, aiming to prevent conflicts of interest in defense procurement.