Ernst urges 24 agencies to freeze SBA 8(a)
Sen. Joni Ernst, chair of the Senate Small Business Committee, sent letters to 24 federal agencies urging a halt to funding and contracting through the SBA’s 8(a) program pending a government‑wide review of alleged fraud and oversight failures. Citing a recent DOJ bribery case tied to 8(a) awards, an undercover video, and SBA’s own June audit order, Ernst argues Biden‑era expansion of 8(a) goals to 15% has amplified risks; the program awarded more than $40 billion in FY2024.
📌 Key Facts
- Ernst sent letters to 24 federal agencies asking them to freeze 8(a) program funding and awards while reviews are conducted.
- She cites a DOJ case in which four individuals tied to at least 14 8(a) contracts worth over $550 million were arrested and later pleaded guilty.
- SBA Administrator Kelly Loeffler ordered a comprehensive audit in June; Ernst says 8(a) awards totaled $40+ billion in FY2024 and alleges goals were tripled from 5% to 15%.