Senate and House Leaders Move to Protect Small Businesses, Promote National Security

House and Senate leaders with jurisdiction over workforce protections and federal contracting today introduced a joint resolution of disapproval that would block implementation of the Obama administration's flawed, and burdensome "blacklisting" rule through the Congressional Review Act. The rule would make a system designed to protect workers less efficient, undermine our nation's military readiness, and limit the ability of small businesses to compete for federal contracts.

Committee leaders released the following statements upon introduction:

"Because this rule lacks basic due process, innocent firms could potentially be blackmailed by using the threat of being blacklisted," said Sen. Ron Johnson (R-WI), chairman of the Senate Committee on Homeland Security and Governmental Affairs. "As a result, this grossly unfair rule must be repealed."

"Workers deserve strong protections and employers who do business with the federal government must be held to a high standard. But this blacklisting rule doesn't make sense," said Rep. Virginia Foxx (R-NC), chairwoman of the House Committee on Education and the Workforce. "Federal agencies already have the tools they need to hold contractors accountable. Adding an unnecessary layer of red tape would only hurt workers and small businesses, increase costs for taxpayers, and threaten the resources our men and women in uniform rely on. We look forward to working with the new administration to ensure responsible regulatory policies are in place, worker protections are enforced, and taxpayer dollars are well-spent."

"Unneeded regulations have no clear benefit. Placing regulatory burdens on the backs of federal contractors only increases costs and complicates an already complicated system," said Rep. Jason Chaffetz (R-UT), chairman of the House Committee on Oversight and Government Reform. "Regulations like the 'blacklist' rule are an easy way to discourage innovation and stifle competition in the federal marketplace. Given the incredibly expensive and particularly burdensome impact of this rule, Congress must swiftly take action."

"Today's resolution to overturn the harmful Obama Administration "blacklisting' regulation is good news for our nation's federal contractors and subcontractors, who could be blocked from receiving a federal contract for an alleged labor violation before any wrongdoing has been proven," said Sen. Lamar Alexander (R-TN), chairman of the Senate Committee on Health, Education, Labor, and Pensions. "I look forward to voting on this resolution and sending it to President Trump's desk for his signature to prevent politically motivated bias and favoritism, preserving a level playing field for federal contractors."

"When the federal government contracts with small businesses, the taxpayer saves and communities across the country benefit," said Rep. Steve Chabot (R-OH), chairman of the House Committee on Small Business. "That's why the "blacklisting' rule hurts everyone, especially our small business job creators who have played by the rules. At the Small Business Committee, we've heard specific, first-hand accounts of how this rule has killed jobs. It's for the sake of these small contractors and their employees that I'm dedicated to working with my colleagues across our jurisdictions to undo the damage of the blacklisting rule.

"The "blacklisting rule' is an additional layer of red tape that hinders the ability of small and midsize companies to compete for federal contracts, adversely impacts timely and efficient procurement, and threatens the well-being of our troops," said Rep. Paul Mitchell (R-MI). "This is another important step in limiting the power of unelected Washington bureaucrats."