WOSB Accountability Act
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The WOSB Accountability Act would require that only women-owned small businesses holding a formal certification from an approved federal, state, or national certifying entity count toward federal agencies' contracting goals for such businesses — closing a loophole that allowed self-certified firms to be counted.
The change would give federal agencies a more accurate measure of whether they are actually contracting with verified women-owned businesses, while a transition provision would protect self-certified firms that have already applied for certification.
What this bill would do
What it would do
The bill would amend the Small Business Act to require that only women-owned small businesses (WOSBs) certified by a federal agency, state government, or a national certifying entity approved by the Small Business Administration (SBA) may be counted when calculating whether an agency has met its governmentwide or agency-level WOSB contracting goals. Currently, self-certified firms can be counted; this bill would end that practice once implementing regulations take effect.
The bill also provides a transitional protection: a self-certified WOSB that had already filed a certification application before the effective date would be treated as certified until the SBA or an approved certifying entity makes a formal determination on that application. The SBA Administrator would be required to issue implementing regulations within one year of enactment and to provide quarterly briefings to the Senate and House Small Business committees on certification application volumes, timelines, costs, outreach efforts, and any need for additional legislative authority.
Key provisions
- 1Would amend the Small Business Act to count only formally certified WOSBs — not self-certified firms — toward governmentwide and agency contracting goals for women-owned businesses.
- 2Would protect self-certified WOSBs that file a certification application before the effective date by deeming them certified until a formal determination is made on their application.
- 3Would require the SBA Administrator to issue implementing regulations within one year of enactment.
- 4Would require the SBA Administrator to provide quarterly briefings to the House and Senate Small Business committees covering application counts, processing timelines, costs, outreach, and resource needs.
- 5Would explicitly authorize no additional funds for carrying out the requirements of the Act.
Who would be affected
Women-owned small businesses that currently rely on self-certification to be counted in federal contracting goal calculations, as well as those applying for formal certification; all federal agencies that report contracting goals for women-owned businesses; the Small Business Administration, which must administer the new certification-counting rules, issue regulations, and report to Congress quarterly.
Why it matters
If enacted, women-owned small businesses without formal certification would no longer boost an agency's reported contracting numbers, potentially pushing agencies to more actively seek out genuinely certified firms. Self-certified businesses that haven't yet applied would lose their counted status, while those mid-application would retain it during the transition — creating a direct incentive to complete the formal certification process.
What would change
Changes to existing law
Amends Small Business Act, Section 15(g) (15 U.S.C. 644(g)) (Sec. 2(a))
Adds a new paragraph excluding self-certified women-owned small businesses from the calculation of governmentwide and agency WOSB contracting goals.
Agencies directed to act
Effective dates
- SBA must issue implementing regulations
- Exclusion of self-certified WOSBs from contracting goal calculations takes effect
- First quarterly congressional briefing on certification implementation required
Funding and costs
Congressional Budget Office estimate
CBO estimates implementing the WOSB Accountability Act would cost less than $500,000 over the 2025–2030 period, subject to the availability of appropriated funds.
CBO estimates that H.R. 1816, the WOSB Accountability Act, would cost less than $500,000 over the 2025–2030 period, based on the costs of similar administrative activities. The bill would require the Small Business Administration (SBA) to update regulations directing federal agencies to exclude self-certifying women-owned small businesses (WOSBs) from WOSB contracting goal data, and would require quarterly SBA reports on WOSB certification statistics in the interim. Any spending would be discretionary — meaning it depends on funds that Congress separately appropriates — and CBO identified no significant effects on direct (mandatory) spending or revenues. CBO did not identify any intergovernmental or private-sector mandates in the bill.
How implementation would work
The SBA Administrator must issue implementing regulations within one year of enactment. The exclusion of self-certified WOSBs from goal calculations takes effect on the first day after the close of the second fiscal year following issuance of those regulations, giving agencies and businesses time to adjust. During that window, self-certified businesses that filed certification applications before the effective date are deemed certified until a determination is made. Starting within 60 days of enactment and continuing quarterly until the effective date, SBA must brief the House and Senate Small Business committees on application volumes, processing timelines, administrative costs, outreach, and any need for additional resources or authority.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Official CRS summary
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This bill requires that only women-owned small businesses that have been certified by a federal agency, state government, or national certifying entity approved by the Small Business Administration (SBA) are included when calculating whether a federal agency has met its contracting goals with respect to such businesses during a fiscal year.
Certain self-certified, women-owned small businesses that have filed an application for certification are deemed to have been certified until the SBA or national certifying entity makes a determination with respect to the certification of such business.
The SBA must provide a briefing each quarter about specified aspects of the process of certifying women-owned small businesses and implementing the requirements of the bill.
Legislative subjects
Commerce; Congressional oversight; Licensing and registrations; Public contracts and procurement; Small Business Administration; Small business; Women in business
Committee report
H. Rept. 119-37