Blog: Supporting Veteran-Owned Businesses

Statement

Each year, the federal government offers billions of dollars in small-businesses contracts to service-disabled veterans so that they can grow their company while providing the government with needed services and goods.

Unfortunately, sometimes unscrupulous individuals seek to take advantage of veterans' initiatives.

Earlier this year, my Committee -- the House Oversight and Government Reform Committee -- learned of a flaw in the current system that allowed a contractor to secure a "service-disabled veteran" designation and, as a result, receive millions in government awards, despite never having served one day in the military.

While attending a military preparatory school, Braulio Castillo injured his ankle and, shortly after went on to play quarterback and linebacker at a civilian college. Twenty-seven years later, Castillo applied for service-disabled veteran status -- conveniently, just months before he started his business and sought out lucrative federal contracts worth over $500 million. Despite never serving a day in the military, Castillo secured this designation for contracting purposes.

Those who have never actually served our country should not be entitled to receive the special status of service-disabled veteran in order to secure advantages in receiving contracts. This loophole must be closed so that future service-disabled veteran businesses can fairly compete for government contracts.

That's why I have worked with fellow Congresswoman -- and disabled veteran -- Rep. Tammy Duckworth (D-IL) to introduce the SERV (Support Earned Recognition for Veterans) Act. This bill will prevent future abuses of the veterans-preference contract system so that those whom never served in the actual armed forces will not be eligible for this status.

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