Shaheen Unveils New Legislation Prohibiting Special Government Employees' Companies from Receiving Federal Contracts or Grant Payments

(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH), Ranking Member of the U.S. Senate Foreign Relations Committee and a top member of the U.S. Senate Armed Services and Appropriations Committee, is introducing new legislation that would prevent federal contracts or grant payments to companies owned or controlled by any person who became a Special Government Employee (SGE) on or after January 1, 2025.  

“Those who step up to serve our country should do so because they want to contribute to the betterment of our nation – not because they stand to benefit from their public service at the expense of taxpayers,” said Shaheen. “I'm introducing legislation to prohibit anyone named a Special Government Employee from raking in federal dollars in government contracts and grant payments and prevent the clear conflicts of interests this arrangement could pose.” 

Senator Shaheen's legislation utilizes the beneficial ownership framework that is also used by the Securities and Exchange Commission with respect to companies traded on stock exchanges, and the agency uses this framework to disclose the true owners of companies whose ownership would otherwise be obscured or hidden by shell companies. Hence, if an SGE owns 5% or more of a company, that company would be ineligible to contract with or receive payment from the federal government.  

Shaheen's bill provides a route for such companies to again be eligible for payments and contracts. If the SGE whose beneficial ownership triggers the payment and contract prohibition quits being an SGE, the company would then be eligible to receive both. 

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