The "Time to Choose Act of 2025" prohibits federal agencies from contracting with consulting firms that simultaneously work for certain foreign entities that pose a risk to U.S. national security.
Joshua "Josh" Hawley
Senator
MO
The "Time to Choose Act of 2025" prohibits federal agencies from contracting with consulting firms that simultaneously work for certain foreign entities, such as the governments of China and Russia, or face penalties. It requires firms bidding on federal contracts to certify they do not have consulting contracts with these "covered foreign entities," with exceptions allowed under national security interests. The Act also outlines penalties for firms providing false information about their foreign contracts, including contract termination and False Claims Act liabilities. This law aims to address conflicts of interest where firms may be undermining U.S. security while contracting with U.S. agencies.
Time to Choose Act: New Bill Forces Consulting Firms to Pick Sides in Federal Contracts
The "Time to Choose Act of 2025" is pretty straightforward: it aims to stop consulting firms from working for both the U.S. government and certain foreign entities, mainly China and Russia. The core idea is to eliminate potential conflicts of interest where these firms might be helping foreign powers while also advising Uncle Sam. (SEC. 2)
Making the Choice
The bill puts consulting firms in a "choose your own adventure" scenario, but with potentially serious consequences. If you're a consulting company and want a federal contract, you (and your subsidiaries) have to certify that you're not also working for "covered foreign entities." (SEC. 3) That's a big deal because "covered foreign entities" include not just the governments of China and Russia, but also any entity sanctioned under Executive Order 13662, and any country the Secretary of State says has supported international terrorism. (SEC. 5) Think of a cybersecurity firm advising the Department of Defense. Under this bill, they couldn't also be working for a Chinese state-owned company. It's one or the other.
The Waiver Wire
Now, there's a safety valve. An agency head can waive this restriction if it's in the "national security interests" of the U.S. and no other conflict-free firm can do the job. (SEC. 3) But, they have to notify the Office of Management and Budget before issuing the waiver, and within 30 days, they need to inform and offer a briefing to relevant congressional comittees. (SEC. 3) Waivers are good for up to 365 days, with a possible one-time extension of 180 days, and only one waiver can be active for a firm across all agencies at any given time. (SEC. 3) If a company gets a waiver, they also have to report any human rights violations, religious liberty issues, or risks to U.S. economic or national security they come across during their work. (SEC. 3)
Truth or Consequences
If a consulting firm lies about its foreign connections, the penalties are severe. Agencies can terminate contracts, and the firm could face suspension or debarment from future federal work. (SEC. 4) Plus, they could be on the hook for triple damages under the False Claims Act. (SEC. 4) So, if a firm knowingly hides a contract with, say, a Russian state-owned energy company, and the U.S. government suffers a loss because of it, that firm could be paying back three times the damage. (SEC. 4, SEC. 5)
No Extra Cash
Finally, the bill makes it clear: no new money is being authorized to implement this. (SEC. 6) Agencies will have to work within their existing budgets to make this happen.