HB61 • 2026

Small SWaM Business Procurement Enhancement Program; established, report.

An Act to amend and reenact §§ 2.2-1604, 2.2-1605, 2.2-1610, 2.2-4310, 2.2-4310.3, and 23.1-1017 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 16.1 of Title 2.2 an article numbered 4, consisting of sections numbered 2.2-1618 through 2.2-1622, relating to the Department of Small Business and Supplier Diversity; Small SWaM Business Procurement Enhancement Program established; report.

Small Business

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Ward
Last action: 2026-05-19
Official status: Governor's Veto
Effective date: Not listed

Plain English Breakdown

The bill's veto status means its provisions have not been implemented and are subject to change or reconsideration.

Small SWaM Business Procurement Enhancement Program

This act establishes a procurement enhancement program for small SWaM businesses in Virginia and sets goals for state agencies to increase their use of these businesses.

What This Bill Does

Establishes the Small SWaM Business Procurement Enhancement Program with a goal of using at least 42% of certified small SWaM businesses in all discretionary spending by executive branch agencies and covered institutions.
Requires executive branch agencies and covered institutions to increase their use of small SWaM businesses by three percent each year until reaching the 42% target or setting achievable goals if unable to do so.
Sets a goal for subcontracting at least 50% of contracts to small SWaM businesses when the prime contractor is not a small SWaM business in new capital outlay construction solicitations.
Establishes set-asides for purchases between $10,000 and $200,000 to be awarded exclusively to certified small SWaM businesses and microbusinesses up to $10,000.
Creates the Division of Procurement Enhancement within the Department of Small Business and Supplier Diversity to collaborate with other departments on enhancing procurement opportunities for small businesses.

Who It Names or Affects

Executive branch agencies in Virginia
Covered institutions such as universities and colleges
Small SWaM businesses certified under the program

Terms To Know

SWaM: A term used to describe small, women-owned, and minority-owned businesses.

Limits and Unknowns

The bill was vetoed by the Governor, so it is not currently in effect.
It does not specify what happens if agencies cannot meet their annual goals for increasing small SWaM business use.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB61G

2026-04-13 • Governor

Governor's Recommendation

Plain English: (HB61) GOVERNOR'S RECOMMENDATION HOUSE BILL NO.

(HB61) GOVERNOR'S RECOMMENDATION HOUSE BILL NO.
61 1.
Line 186, enrolled strike all of lines 186 through 189 2.
Line 243, enrolled, after Agency, strike and 3.

HB61AHC1

2026-02-03

General Laws Amendment

Plain English: OFFERED FOR CONSIDERATION 2/03/2026 HB 61 SUBCOMMITTEE 1.

OFFERED FOR CONSIDERATION 2/03/2026 HB 61 SUBCOMMITTEE 1.
Line 33, introduced, after 2.2-2006 .
insert However, "executive branch agency" does not include the Virginia Passenger Rail Authority.
SUBCOMMITTEE 2.

HB61AHC2

2026-02-04 • Committee

Procurement/Open Government Subcommittee Amendment

Plain English: 2/04/2026 HB 61 SUBCOMMITTEE 1.

2/04/2026 HB 61 SUBCOMMITTEE 1.
Line 33, introduced, after 2.2-2006 .
insert However, "executive branch agency" does not include the Virginia Passenger Rail Authority.
SUBCOMMITTEE 2.

HB61AH1

2026-02-05 • Committee

General Laws Amendment

Plain English: 2/05/2026 HB 61 GENERAL LAWS 1.

2/05/2026 HB 61 GENERAL LAWS 1.
Line 33, introduced, after 2.2-2006 .
insert However, "executive branch agency" does not include the Virginia Passenger Rail Authority.
GENERAL LAWS 2.

Bill History

2026-05-19 Governor
Vetoed by Governor
2026-04-22 Governor
Governor's recommendation adopted
2026-04-22 House
Signed by Speaker
2026-04-22 Senate
Signed by President
2026-04-22 House
Communicated to Governor
2026-04-22 Governor
Governor's Action Deadline 11:59 p.m., May 23, 2026
2026-04-22 House
Communicated to Governor
2026-04-22 Governor
Governor's Action Deadline 11:59 p.m., May 23, 2026
2026-04-22 House
Communicated to Governor
2026-04-22 Governor
Governor's Action Deadline 11:59 p.m., May 23, 2026
2026-04-22 House
House concurred in Governor's recommendation
2026-04-22 House
Reenrolled
2026-04-22 House
Reenrolled bill text (HB61ER2)
2026-04-22 House
Governor's amendment nos. 1 - 3 agreed to (64-Y 36-N 0-A)
2026-04-22 House
Governor's recommendation no. 4 passed by
2026-04-22 Senate
Senate concurred in Governor's recommendation nos 1 - 3 (21-Y 18-N 0-A)
2026-04-13 Governor
Governor's recommendation received by House
2026-03-17 House
Fiscal Impact Statement from Department of Planning and Budget (HB61)
2026-03-14 House
Enrolled Bill communicated to Governor on March 14, 2026
2026-03-14 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-13 House
Signed by Speaker
2026-03-13 Senate
Signed by President
2026-03-13 House
Enrolled
2026-03-13 House
Bill text as passed House and Senate (HB61ER)
2026-03-11 Finance and Appropriations
Fiscal Impact Statement from Department of Planning and Budget (HB61)
2026-03-06 House
Senate substitute agreed to by House (62-Y 36-N 0-A)
2026-03-04 Senate
Read third time
2026-03-04 Senate
Read third time
2026-03-04 Senate
Engrossed by Senate - committee substitute
2026-03-04 Senate
Engrossed by Senate - committee substitute
2026-03-04 Finance and Appropriations
Committee substitute printed 26109055D-S2
2026-03-04 General Laws and Technology
General Laws and Technology Substitute rejected
2026-03-04 Finance and Appropriations
Finance and Appropriations Substitute agreed to
2026-03-04 Senate
Passed Senate with substitute (21-Y 19-N 0-A)
2026-03-03 Finance and Appropriations
Reported from Finance and Appropriations with substitute (10-Y 5-N)
2026-03-03 Senate
Rules suspended
2026-03-03 Senate
Rules suspended
2026-03-03 Senate
Passed by for the day
2026-03-03 Senate
Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)
2026-03-03 Senate
Passed by for the day Block Vote (Voice Vote)
2026-03-02 General Laws and Technology
Fiscal Impact Statement from Department of Planning and Budget (HB61)
2026-02-26 General Laws and Technology
Committee substitute printed 26108648D-S1
2026-02-25 General Laws and Technology
Reported from General Laws and Technology with substitute and rereferred to Finance and Appropriations (9-Y 6-N)
2026-02-25 Senate
Senate committee offered
2026-02-23 House
Fiscal Impact Statement from Department of Planning and Budget (HB61)
2026-02-18 Senate
Constitutional reading dispensed (on 1st reading)
2026-02-18 General Laws and Technology
Referred to Committee on General Laws and Technology
2026-02-17 House
Read third time and passed House (64-Y 33-N 0-A)
2026-02-16 House
Read second time
2026-02-16 House
committee amendments agreed to
2026-02-16 House
Engrossed by House as amended
2026-02-13 House
Read first time
2026-02-11 Appropriations
Reported from Appropriations (15-Y 7-N)
2026-02-11 Commerce Agriculture & Natural Resources
Subcommittee recommends reporting (5-Y 2-N)
2026-02-05 Commerce Agriculture & Natural Resources
Assigned HAPP sub: Commerce Agriculture & Natural Resources
2026-02-05 General Laws
Reported from General Laws with amendment(s) and referred to Appropriations (16-Y 5-N)
2026-02-03 Procurement/Open Government
Subcommittee recommends reporting with amendment(s) and referring to Appropriations (7-Y 3-N)
2026-02-03 Procurement/Open Government
House subcommittee offered
2026-01-29 House
Fiscal Impact Statement from Department of Planning and Budget (HB61)
2026-01-26 Procurement/Open Government
Assigned HGL sub: Procurement/Open Government
2025-12-30 House
Prefiled and ordered printed; Offered 01-14-2026 26101943D
2025-12-30 General Laws
Referred to Committee on General Laws

Official Summary Text

Department of Small Business and Supplier Diversity; Small SWaM Business Procurement Enhancement Program established.
Establishes the Small SWaM Business Procurement Enhancement Program with a statewide goal of 42 percent of certified small SWaM business, as such term is defined in the bill, utilization in all discretionary spending by executive branch agencies and covered institutions in procurement orders, prime contracts, and subcontracts, as well as a target goal of 50 percent subcontracting to small SWaM businesses in instances where the prime contractor is not a small SWaM business for all new capital outlay construction solicitations that are issued. The bill provides that executive branch agencies and covered institutions are required to increase their small SWaM business utilization rates by three percent per year until reaching the 42-percent target or, if unable to do so, to implement achievable goals to increase their utilization rates. In addition, the bill provides for a small SWaM business set-aside for executive branch agency and covered institution purchases of goods, services, and construction, requiring that purchases between $10,000 and $200,000 be set aside for award to certified small SWaM businesses, and a microbusiness set-aside for such purchases, requiring that such purchases up to $10,000 be set aside for award to microbusinesses.
The bill creates the Division of Procurement Enhancement within the Department of Small Business and Supplier Diversity for purposes of collaborating with the Department of General Services, the Virginia Information Technologies Agency, the Department of Transportation, the State Council of Higher Education for Virginia, and covered institutions to further the Commonwealth's efforts to meet the goals established under the Small SWaM Business Procurement Enhancement Program, as well as implementing initiatives to enhance the development of small businesses, microbusinesses, women-owned businesses, minority-owned businesses, and service disabled veteran-owned businesses in the Commonwealth.
Finally, the bill requires the Director of the Department of Small Business and Supplier Diversity to conduct, or contract with an independent entity to conduct, a disparity study every five years, with the next disparity study due no later than January 1, 2031. The bill specifies that such study shall evaluate the need for enhancement and remedial measures to address the disparity between the availability and the utilization of women-owned and minority-owned businesses.

Current Bill Text

Read the full stored bill text

(HB61)
GOVERNOR'S VETO
Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto House Bill 61, which would prohibit nearly 800 women-owned and minority-owned businesses in Virginia currently leveraging the Small, Women, and Minority-Owned ("SWaM") program from continuing to participate in the program.
The SWaM program was officially established by Governor Kaine almost 20 years ago and has been instrumental in providing meaningful business opportunities to small businesses and women and minority-owned businesses. The Commonwealth has leveraged this program to demonstrate the value of investing in SWaM businesses, which today provide many important services to the state.
House Bill 61 would fundamentally change the SWaM program by altering the definition to limit participation to small SWaM businesses. These changes would limit state contract opportunities for nearly 800 women-owned and minority-owned businesses that currently participate in the program and would reduce Virginia's current SWaM spending by at least $340 million dollars. Excluding previously-eligible businesses from participation, as the enrolled bill does, would fundamentally change the trajectory and purpose of the SWaM program.
My amendments to this bill would have maintained the requirement for a disparity study every five years but would have given my administration additional time to work with the General Assembly to strengthen the SWaM program and avoid these unintended consequences. Unfortunately, the General Assembly rejected these amendments.
Accordingly, I veto this bill.