H.R. 5235: Skills-Based Federal Contracting Act of 2025
Sponsor
Nancy Mace
Republican · SC-1
Bill Progress
Latest Action · Feb 24, 2026
Passed the House, received in Senate
Why it matters
Federal agencies are under pressure to widen the talent pool and cut unnecessary degree screens as employers increasingly shift toward skills-based hiring.
The practical effect would likely be a wider candidate pool for federal contractors and more discretion for companies to propose workers based on skills and experience. At the same time, agencies may worry about how to maintain quality and consistency in specialized roles. The bill tries to balance that by preserving the option to require education when an agency can justify it, delaying implementation for 15 months, and requiring a later GAO review of compliance.
What does H.R. 5235 do?
Degree requirements generally barred
Federal contract solicitations could not require minimum education levels for contractor personnel unless the agency provides a written justification.
Written justification required
A contracting officer would have to explain why the agency's needs cannot be met without the education requirement and how the requirement helps meet those needs.
OMB must issue implementation guidance
Within 180 days of enactment, OMB must tell agencies how to document, review, and justify any use of education requirements and encourage alternatives.
Broad definition of education requirement
The bill covers not only degree-only rules but also standards based on education, education or experience, or a combination of education and experience.
Delayed rollout for new solicitations
The new rules would apply only to solicitations issued 15 months after enactment, giving agencies time to adjust their contracting practices.
Old IT education rule repealed and compliance reviewed
An older statutory rule tied to education requirements in federal IT contracting would be repealed when the new OMB guidance takes effect, and GAO would review agency compliance within 3 years.
Who benefits from H.R. 5235?
Workers without college degrees
They could have a better shot at jobs supporting federal contracts if agencies can no longer use degrees as a routine screen.
Federal contractors and subcontractors
Companies may gain flexibility to staff contracts based on practical skills, certifications, and work experience instead of formal education credentials.
Mid-career workers with hands-on experience
People who built expertise on the job, in the military, or through technical training could become more competitive for contract roles.
Agencies struggling to fill roles
A broader labor pool could make it easier to find qualified personnel in hard-to-hire fields.
Who is affected by H.R. 5235?
Executive branch contracting officers
They would have new paperwork and review responsibilities whenever they want to include an education requirement in a solicitation.
Executive agencies issuing service contracts
They would need to revisit standard qualification language and shift toward skills-based criteria unless a degree requirement is justified.
Universities and degree-focused credential pipelines
Their credentials may carry less automatic weight in federal contracting decisions where experience can substitute more easily.
Contract workers in specialized professions
They may still face degree requirements in some roles, but agencies would have to explain why those requirements are necessary.
H.R. 5235 Common Questions
Can federal contractors be disqualified for not having a degree under HR 5235?
Generally no. Under the Skills-Based Federal Contracting Act of 2025 (Section 2(a)), solicitations may not require minimum education for proposed contractor personnel to be eligible for award unless a contracting officer gives a written justification.
How long after enactment would the federal contractor degree rule take effect?
The new rules apply only to solicitations issued 15 months after enactment, according to H.R. 5235 Section 2(d).
How soon must OMB issue guidance on education requirements in federal contracts?
OMB must issue guidance within 180 days after enactment under the Skills-Based Federal Contracting Act of 2025 (Section 2(c)).
What must a contracting officer write to justify a degree requirement in a federal solicitation?
Under H.R. 5235 Section 2(a), the contracting officer must explain in writing why the agency's needs cannot be met without the education requirement and how the requirement ensures those needs are met.
Does HR 5235 ban education-or-experience requirements in federal contract solicitations?
Yes, unless justified. According to H.R. 5235 Section 2(g), an 'education requirement' includes education alone, education or experience, and combinations of education and experience.
What counts as education under the Skills-Based Federal Contracting Act of 2025?
Section 2(g) says education includes associate, bachelor's, graduate, or professional degrees, specified coursework, and other educational attainment from approved or accredited colleges, universities, or community colleges.
Does HR 5235 repeal the old federal IT contracting education rule?
Yes. H.R. 5235 Section 2(e) repeals Section 813 of the Floyd D. Spence NDAA for FY2001 when the OMB guidance under Section 2(c) becomes effective.
Will GAO review whether agencies follow the new skills-based federal contracting rules?
Yes. According to H.R. 5235 Section 2(f), the Comptroller General must evaluate executive agency compliance and report to Congress within 3 years after enactment.
Which schools qualify for education credentials under HR 5235?
Under the Skills-Based Federal Contracting Act of 2025 (Section 2(g)), the school must be accredited by a recognized accrediting agency or approved by a state education authority, including D.C., to grant associate or higher degrees.
Does the bill apply to all federal agencies or only some agencies?
It applies to executive agencies, as defined by reference to 41 U.S.C. 133, under the Skills-Based Federal Contracting Act of 2025 (Sections 2(a) and 2(g)).
Based on H.R. 5235 bill text
HR5235 Legislative Journey
Committee Action
Feb 24, 2026
Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
House: Vote Held
Feb 23, 2026
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2247)
House: Vote: 44-0
Dec 2, 2025
Ordered to be Reported (Amended) by the Yeas and Nays: 44 - 0.
House: Committee Action
Sep 9, 2025
Referred to the House Committee on Oversight and Government Reform.
About the Sponsor
Nancy Mace
Republican, South Carolina's 1st congressional district · 5 years in Congress
Committees: Veterans' Affairs, Oversight and Government Reform, Armed Services
View full profile →
Cosponsors (2)
All 2 cosponsors are Democrats. Cosponsors represent 2 states: Illinois, Washington.
Committee Sponsors
Homeland Security and Governmental Affairs Committee
0 of 15 committee members cosponsored
No committee members have cosponsored this bill
Oversight and Government Reform Committee
1 of 46 committee members cosponsored
33 Republicans across these committees haven't cosponsored yet. Mobilize their constituents
H.R. 5235 Quick Facts
- Committee
- Homeland Security and Governmental Affairs
- Chamber
- House
- Policy
- Government Operations and Politics
- Introduced
- Sep 9, 2025
Passed the House, received in Senate
Feb 24, 2026
H.R. 5235 Bill Text
“To amend title 41, United States Code, to prohibit minimum educational requirements for proposed contractor personnel in certain contract solicitations, and for other purposes.”
Source: U.S. Government Publishing Office
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