Federal119Active
S5684
No Cash for Incompetent and Malicious Contractors Act
Last scannedOct 19, 2026, 2:05 AM
In one sentence
This bill requires federal agencies to remove contractors from the list of eligible bidders if they are found guilty of improperly sharing clients' private information.
What it does
- Requires agency heads to debar contractors who are convicted or lose a civil case for sharing client data without consent.
- Sets the debarment period between one and five years based on how serious the violation was.
- Requires agencies to suspend contractors if they are charged with a crime involving the disclosure of client data.
- Specifies that the suspension length follows existing Federal Acquisition Regulation rules.
- Adds a new section to the U.S. Code to formalize these debarment and suspension rules.
Who it affects
- Federal contractors who handle client data.
- Employees of federal contractors who disclose client data.
- Heads of executive agencies who must enforce these rules.
Limits and unknowns
- The bill does not specify which executive agencies are exempt from these requirements.
- The bill does not define the exact criteria for determining the 'severity of the conduct' used to set the debarment length.
- The bill is currently in the Senate and has not yet been passed into law.
Plain language
Terms to know
- Debarment
- A formal removal from the list of companies eligible to win federal contracts.
- Suspension
- A temporary pause in a contractor's eligibility for federal contracts while an investigation is ongoing.
- Personally Identifiable Information
- Private data that identifies a specific person, such as a Social Security number, tax return details, health records, or trade secrets.
Official record
Sources
Official activity
Bill history
- Under authority of the order of the Senate of September 30, 2026, ordered read twice and referred to the Committee on Homeland Security and Governmental Affairs.Senate
- Introduced in SenateLibrary of Congress