Protecting American Taxpayers Act

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Bill ID: 119/s/4378
Last Updated: July 22, 2026

Sponsored by

Sen. Ernst, Joni [R-IA]

ID: E000295

Follow the money

The bill

Protecting American Taxpayers Act

S. 4378, 119th Congress — read as touching Commercial Banks.

The sponsor

Sen. Ernst, Joni [R-IA]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$383,500 raised

23 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

85% match to Project 2025

This bill's text tracks the "Small Business Administration" section, p. 786-788 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 401.

April 26, 2026

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

✅

Passed Senate

🏛️

House Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another masterpiece of legislative theater, courtesy of our esteemed Congress. The "Protecting American Taxpayers Act" - how quaint. How utterly, mind-numbingly predictable.

**Main Purpose & Objectives:** The main purpose of this bill is to pretend to care about combating fraud in Federal programs while actually serving as a vehicle for politicians to grandstand and pander to their constituents. The objectives are twofold: (1) to create the illusion of action, and (2) to funnel more money and power into the hands of those who already have too much of both.

**Key Provisions & Changes to Existing Law:** The bill is a laundry list of "reforms" that will supposedly prevent fraud in child care services, healthcare, and other areas. But let's be real - these provisions are nothing more than window dressing. They're designed to sound good on paper, not to actually effect meaningful change. For example, the bill requires child care providers to track attendance and maintain records for 7 years. Wow, what a bold move. I'm sure this will strike fear into the hearts of would-be fraudsters everywhere.

**Affected Parties & Stakeholders:** The affected parties include child care providers, healthcare services, small businesses, and (of course) the politicians who sponsored this bill. The stakeholders are the usual suspects: lobbyists, special interest groups, and the voters who will be duped into thinking that their elected representatives are actually doing something useful.

**Potential Impact & Implications:** The potential impact of this bill is negligible. It will not significantly reduce fraud or waste in Federal programs. What it will do is create more bureaucracy, more paperwork, and more opportunities for politicians to posture and preen. The implications are clear: this bill is a symptom of a deeper disease - the disease of corruption, cowardice, and stupidity that afflicts our political system.

In conclusion, the "Protecting American Taxpayers Act" is a farce, a sham, a Potemkin village of legislation designed to deceive and distract. It's a classic case of legislative lupus - a chronic condition characterized by a lack of integrity, a surplus of hot air, and a complete disregard for the well-being of the American people. So, let's give it the diagnosis it deserves: a terminal case of political cynicism, with a prognosis of more of the same old nonsense from our elected representatives.

Related Topics

Healthcare & Insurance Reform
Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Sen. Ernst, Joni [R-IA]

Congress 119 • 2024 Election Cycle

Total Contributions
$383,500
22 donors
PACs
$0
Organizations
$7,700
Committees
$0
Individuals
$375,800

No PAC contributions found

1
SAC & FOX TRIBE OF MISSISSIPPI IN IOWA
2 transactions
$6,700
2
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
1 transaction
$1,000

No committee contributions found

1
ABEL, ANDREA MS.
1 transaction
$50,000
2
MCINERNEY, THOMAS E. MR.
1 transaction
$50,000
3
NICOLLS, BOB MR.
1 transaction
$25,000
4
GRAY, C. BOYDEN
1 transaction
$25,000
5
CATSIMATIDIS, JOHN A. MR.
1 transaction
$25,000
6
KOTICK, ROBERT MR.
1 transaction
$16,600
7
VINCZE, CHRISTOPHER
1 transaction
$15,800
8
FRANCE, BRIAN Z. MR.
1 transaction
$15,000
9
BAKER, BERNARD J. MR. III
1 transaction
$15,000
10
HEGYI, ALBERT P. MR.
1 transaction
$15,000
11
DAVISON, JAMES E. MR.
1 transaction
$15,000
12
BROIN, JEFF MR.
1 transaction
$15,000
13
SHERRILL, STEPHEN C. MR.
1 transaction
$15,000
14
GLEESON, JOHN W. MR.
1 transaction
$12,500
15
RAY-GLEESON, KAREN S. MRS.
1 transaction
$12,500
16
POPOLO, JOE
1 transaction
$11,800
17
PFAUTCH, ROY MR.
1 transaction
$11,600
18
GOLDMAN, MARC STANLEY
1 transaction
$10,000
19
SCHLOEMER, JAMES H. MR.
1 transaction
$10,000
20
SABIN, ANDREW MR.
1 transaction
$10,000

Cosponsors & Their Campaign Finance

This bill has 10 cosponsors. Below are their top campaign contributors.

Sen. Ricketts, Pete [R-NE]

ID: R000618

Top Contributors

26

1
SPIKE OCOTILLO LLC
OrganizationCHANDLER, AZ
$2,500
Mar 4, 2024
2
HUNTON ANDREWS KURTH LLP
OrganizationRICHMOND, VA
$1,000
Mar 28, 2024
3
KING & SPALDING LLP
OrganizationATLANTA, GA
$1,000
Mar 29, 2024
4
GREENBERG TRAURIG
OrganizationALBANY, NY
$1,000
Apr 23, 2024
5
H.A. TRUE, III
OrganizationCASPER, WY
$1,000
Aug 22, 2024
6
DELTA AIRLINES
OrganizationATLANTA, GA
$234
Apr 17, 2023
7
VANDERSLOOT, BELINDA
SELF • HOMEMAKER
IndividualIDAHO FALLS, ID
$6,600
Mar 4, 2024
8
VANDERSLOOT, FRANK
MELALEUCA • OWNER
IndividualIDAHO FALLS, ID
$6,600
Mar 4, 2024
9
MANDELBLATT, DANIELLE
RETIRED
IndividualASPEN, CO
$6,600
Jun 7, 2024
10
MANDELBLATT, ERIC
SOROBAN CAPITAL PARTNERS LP • MANAGING PARTNER
IndividualASPEN, CO
$6,600
Jun 7, 2024

Sen. Marshall, Roger [R-KS]

ID: M001198

Top Contributors

24

1
THE KROGER CO. POLITICAL ACTION COMMITTEE
PACCINCINNATI, OH
$3,000
Mar 16, 2023
2
THE KROGER CO. POLITICAL ACTION COMMITTEE
PACCINCINNATI, OH
$2,500
Mar 23, 2023
3
INTERNATIONAL ASSOCIATION OF FIRE FIGHTERS
PACWASHINGTON, DC
$2,500
Mar 31, 2023
4
THE POLITICAL ACTION COMMITTEE OF THE FERTILIZER INSTITUTE
PACWASHINGTON, DC
$1,500
Mar 31, 2023
5
ILLIG, MICHAEL
TIFEC LLC • PRIVATE EQUITY
IndividualLEAWOOD, KS
$13,200
Nov 3, 2024
6
MADAY, GREG
SPECCHEM • CHAIRMAN CEO
IndividualMISSION HILLS, KS
$13,200
Nov 11, 2024
7
ILLIG, BONNE
RETIRED • RETIRED
IndividualLEAWOOD, KS
$6,600
Nov 2, 2024
8
ILLIG, AMY
HOMEMAKER • HOMEMAKER
IndividualLEAWOOD, KS
$6,600
Nov 12, 2024
9
MADAY, LIZ
SPECCHEM • DIRECTOR
IndividualMISSION HILLS, KS
$6,600
Nov 12, 2024
10
MAXWELL, KORB II
POLSINELLI • SHAREHOLDER
IndividualFAIRWAY, KS
$6,600
Nov 3, 2024

Sen. Cramer, Kevin [R-ND]

ID: C001096

Top Contributors

26

1
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$3,300
Sep 29, 2023
2
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$3,300
Jun 14, 2024
3
SISSETON-WAHPETON OYATE
OrganizationAGENCY VILLAGE, SD
$2,500
Jun 21, 2024
4
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$1,000
Jun 18, 2024
5
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$600
Jun 6, 2023
6
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$400
Jun 6, 2023
7
WALSH, RICHARD
IndividualLAKE WORTH BEACH, FL
$6,700
Oct 16, 2024
8
JORDAN, BORIS
CURALEAF • EXECUTIVE CHAIRMAN OF THE BOARD
IndividualBOCA RATON, FL
$6,600
Sep 15, 2023
9
SMITH, BRAD
MICROSOFT CORPORATION • ATTORNEY
IndividualBELLEVUE, WA
$6,600
Sep 29, 2023
10
KAPLAN, DAVID
ARES MANAGEMENT • CO-FOUNDER
IndividualLOS ANGELES, CA
$6,600
Oct 11, 2023

Sen. Moody, Ashley [R-FL]

ID: M001244

Top Contributors

0

No contribution data available

Sen. Sheehy, Tim [R-MT]

ID: S001232

Top Contributors

100

1
CLUB FOR GROWTH PAC
PACWASHINGTON, DC
$7,720
Jun 27, 2024
2
CLUB FOR GROWTH PAC
PACWASHINGTON, DC
$7,720
Jun 27, 2024
3
CLUB FOR GROWTH PAC
PACWASHINGTON, DC
$7,720
Jun 27, 2024
4
CLUB FOR GROWTH PAC
PACWASHINGTON, DC
$7,720
Jun 27, 2024
5
CLUB FOR GROWTH PAC
PACWASHINGTON, DC
$7,720
Jun 27, 2024
6
SENATE CONSERVATIVES FUND
PACWASHINGTON, DC
$7,609
Jun 21, 2024
7
SENATE CONSERVATIVES FUND
PACWASHINGTON, DC
$7,609
Jun 21, 2024
8
SENATE CONSERVATIVES FUND
PACWASHINGTON, DC
$7,609
Jun 21, 2024
9
REPUBLICAN JEWISH COALITION-POLITICAL ACTION COMMITTEE (RJC-PAC)
PACWASHINGTON, DC
$7,000
Jun 25, 2024
10
REPUBLICAN JEWISH COALITION-POLITICAL ACTION COMMITTEE (RJC-PAC)
PACWASHINGTON, DC
$7,000
Jun 25, 2024

Sen. Banks, Jim [R-IN]

ID: B001299

Top Contributors

21

1
STOCKAMP FOUNDATION
OrganizationCOLUMBIA CITY, IN
$100
Feb 26, 2024
2
NEAL, ROLLIE
RETIRED • RETIRED
IndividualCLARKSBURG, WV
$13,068
Mar 12, 2023
3
NEAL, ROLLIE
IndividualCLARKSBURG, WV
$13,068
Mar 21, 2023
4
SALAMONE, CHRISTOPHER J
IndividualFAIRPORT, NY
$12,000
Feb 8, 2024
5
BARKLEY, JOSH
BARKLEY BUILDERS INC • GENERAL CONTRACTOR
IndividualOSSIAN, IN
$6,700
Apr 3, 2023
6
THRIFT, PAUL
THOMPSON THRIFT • CEO
IndividualTERRE HAUTE, IN
$6,700
Feb 28, 2023
7
MUSELMAN, ROGER C.
DRG HOLDINGS, LLC • CHAIRMAN
IndividualBERNE, IN
$6,700
Mar 28, 2023
8
WALTERS, KENNETH
JAYCO • PRESIDENT AND CEO
IndividualGRANGER, IN
$6,700
Sep 1, 2023
9
DUMEZICH, DANA A.
RETIRED • RETIRED
IndividualMARCO ISLAND, FL
$6,600
Jun 15, 2023
10
RAMSEY, JASON
IndividualBREVARD, NC
$6,600
May 8, 2023

Sen. Grassley, Chuck [R-IA]

ID: G000386

Top Contributors

23

1
SAC & FOX TRIBE OF THE MISSISSIPPI IN IOWA
COMTAMA, IA
$2,000
Aug 8, 2023
2
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
COMPRIOR LAKE, MN
$1,000
Jul 23, 2024
3
WINRED
PACARLINGTON, VA
$25
Jul 4, 2024
4
SCHWARZMAN, CHRISTINE
RETIRED • RETIRED
IndividualNEW YORK, NY
$6,600
Jan 10, 2024
5
SCHWARZMAN, STEPHEN
BLACKSTONE • CEO
IndividualNEW YORK, NY
$6,600
Jan 16, 2024
6
KUMAR, SHALLI
AVG ADVANCED TECHNOLOGY • CHAIR
IndividualBETTENDORF, IA
$6,600
Jun 11, 2024
7
STARRETT, RONALD
RETIRED • RETIRED
IndividualCENTENNIAL, CO
$5,800
Jan 24, 2023
8
COLLINS, RICHARD
RETIRED • RETIRED
IndividualMARSHALLTOWN, IA
$5,523
Oct 1, 2024
9
COLLINS, RICHARD
IndividualMARSHALLTOWN, IA
$5,523
Oct 7, 2024
10
WEISS, LUKE
HOOVER'S HATCHERY • PRESIDENT
IndividualMASON CITY, IA
$3,300
Dec 11, 2024

Sen. Cornyn, John [R-TX]

ID: C001056

Top Contributors

21

1
WINRED
COMARLINGTON, VA
$47
Jul 10, 2024
2
WEEKLEY, RICHARD W
WEEKLEY PROPERTIES • REAL ESTATE BROKER/DEVELOPER
IndividualHOUSTON, TX
$100,000
Dec 27, 2023
3
MCINGVALE, JAMES F
GALLERY FURNITURE • OWNER/OPERATOR
IndividualHOUSTON, TX
$50,000
Feb 27, 2023
4
MCINGVALE, LINDA
IndividualHOUSTON, TX
$50,000
Feb 27, 2023
5
DUNN, TIMOTHY
CROWN QUEST OPERATING • EXECUTIVE
IndividualMIDLAND, TX
$45,000
Apr 4, 2023
6
MARTIN, KIMBERLY R
IndividualHOUSTON, TX
$20,000
Mar 13, 2023
7
BLAINE, JAY C.
N/A • N/A
IndividualROCKWALL, TX
$16,478
Oct 11, 2024
8
THOMPSON, JERE W. MR. JR.
AMBIT ENERGY • CEO
IndividualDALLAS, TX
$13,200
Mar 15, 2023
9
MIDDLETON, MAYES
MIDDLETON OIL CO • OIL AND GAS
IndividualGALVESTON, TX
$12,500
Jan 7, 2023
10
MIDDLETON, MACEY
IndividualGALVESTON, TX
$12,500
Jan 7, 2023

Sen. Moreno, Bernie [R-OH]

ID: M001242

Top Contributors

32

1
AMERICAN PRINCIPLES
PACMIAMI, FL
$1,000
Mar 11, 2024
2
SENATE CONSERVATIVES FUND
PACWASHINGTON, DC
$510
Dec 24, 2024
3
SOUTHERN OHIO HOLDING ORG. LLC
OrganizationWASHINGTON COURT H, OH
$5,000
Mar 31, 2024
4
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$3,300
Dec 31, 2024
5
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
OrganizationPRIOR LAKE, MN
$3,300
Dec 31, 2024
6
C AND D BILLS LTD
OrganizationFINDLAY, OH
$3,300
Jun 14, 2023
7
CLINTON COUNTY REPUBLICAN
OrganizationWILMINGTON, OH
$2,000
Sep 20, 2024
8
BOAK ENTERPRISES LLC
OrganizationCANFIELD, OH
$1,000
Sep 27, 2023
9
B2B CONCORD LLC
OrganizationHIGHLAND HEIGHTS, OH
$500
Sep 28, 2023
10
STATA FAMILY OFFICE
OrganizationDOVER, MA
$500
Jul 25, 2024

Sen. Husted, Jon [R-OH]

ID: H001104

Top Contributors

0

No contribution data available

Donor Network - Sen. Ernst, Joni [R-IA]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Loading...

Showing 42 nodes and 39 connections

Total contributions: $39

Top Donors - Sen. Ernst, Joni [R-IA]

Showing top 22 donors by contribution amount

2 Orgs20 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 9 helped, 13 harmed.

  • −Commercial Banksconfidence 0.90

    Section 3502 prohibits individuals receiving public assistance from conducting remittance transfers, which would affect commercial banks that provide remittance services, imposing a cost via enforcement and penalties.

  • −Telecommunicationsconfidence 0.80

    Section 3502's prohibition on remittance transfers for public assistance recipients would impact telecommunications companies that offer money transfer services (e.g., via mobile apps), imposing compliance costs and potential fines.

  • −Crypto & Fintechconfidence 0.80

    Section 3502's prohibition on remittance transfers for public assistance recipients would impact crypto and fintech firms (e.g., Coinbase, PayPal, Block) that facilitate such transfers, imposing compliance burdens and penalties.

  • Section 1202 prohibits financial assistance from the SBA Administrator to small business concerns that have an associate convicted of financial misconduct, which could impact private equity and hedge fund owners or executives who are associates of small businesses seeking SBA loans or grants.

  • −Big Tech Platformsconfidence 0.70

    Section 3502's remittance transfer ban could affect big tech platforms offering payment services (e.g., Apple Pay, Google Pay), requiring them to implement restrictions for public assistance recipients, imposing operational costs.

  • +Defense Contractorsconfidence 0.70

    Section 3702 expands whistleblower protections for defense contractor employees, making it easier to report fraud and waste, which could lead to recovery of improper payments and benefit contractors by reducing fraudulent claims against them.

+ 16 more industries not shown.

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Sen. Ernst, Joni [R-IA])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HELPS

Industries this bill HARMS

  • from 6 contributions
    • ROWAN, MARC J. MR.$9,900
    • FRIEDMAN, SCOTT$2,500
    • ALHADI, AYAD$2,000
    • KIRBY, ANDREW$1,000
    • NOVA, RIA$500
  • from 22 contributions
    • ROHRBAUGH, TROY$3,300
    • DIMON, JAMIE$3,300
    • LOPATA, BENJAMIN$2,000
    • BEER, ALLISON$1,000
    • MESACK, MICHELLE$500
  • from 1 contribution
    • WALKER, KENT$3,300
  • from 22 contributions
    • DWIGHT, TIMOTHY$221
    • TOLL, TED$128

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Small Business Administration

Strong
Vector: 68%
Pages: 786-788AI Enhanced

AI Analysis:

"The bill's focus on rescinding unused COVID-19 funding and prohibiting assistance after fraud conviction directly aligns with Project 2025's call for accountability and cleanup of fraudulent COVID-19 lending programs, including reversing improper forgiveness and pursuing ineligible recipients."

Key themes:COVID-19 fraud accountabilitySBA loan program integrityrescission of improper fundsfraud prevention in lending

— 753 — Small Business Administration COVID-19 Lending Program Accountability and Cleanup. A major immediate priority for the next Administration should be a final accounting and accelerated cleanup of fraudulent COVID-19 loan and grant activity. As noted by the SBA IG, “managing COVID-19 stimulus lending is the greatest overall challenge facing SBA, and it may likely continue to be for many years as the agency grapples with fraud in the programs….”40 The next Administration should: l Consider bringing in private-sector support and expertise to close out these programs. Forgiveness and fraud must be dealt with as swiftly as possible, and law enforcement officials must pursue fraud vigorously. Entities receiving PPP loans that did not meet eligibility for forgiveness must be required to pay back the money. For example, under the CARES Act,41 PPP loan applicants generally were eligible only if, together with all their affiliates, they had no more than 500 employees. Numerous Planned Parenthood affiliates self-certified eligibility for PPP loans during the initial wave of loans that were governed by the CARES Act’s size requirement. Many Senators and Representatives asserted that these Planned Parenthood organizations were ineligible because— considered together with their affiliates—they exceeded the maximum eligible size.42 The Trump Administration SBA notified several Planned Parenthood PPP recipients of its preliminary determination of their ineligibility and of SBA’s authority to take various actions against applicants that falsely certified their eligibility.43 To date, despite continued oversight attempts by Members of Congress,44 the SBA has taken no action on the Planned Parenthood loans other than to forgive them, and in 2021, it approved new PPP loans to Planned Parenthood affiliates.45 l Cooperate with ongoing congressional oversight efforts and determine whether SBA has authority to reverse the forgiveness decisions. If it does have that authority, the SBA should reverse the forgiveness decisions for the subject loans, reiterate its preliminary determinations of ineligibility, investigate the matter more thoroughly, and take all appropriate action when its investigation concludes. Regardless of whether it reverses its forgiveness, if its investigation uncovers evidence that Planned Parenthood affiliates or any other loan recipients knowingly misrepresented their eligibility in their applications, the SBA should make appropriate referrals to the Department of Justice. — 754 — Mandate for Leadership: The Conservative Promise Disaster Loan Program and Direct Lending. The SBA’s disaster loan pro- gram provides low-interest loans to personal, business, and nonprofit borrowers following a federally declared disaster. The program suffers from problems of coordination with Federal Emergency Management Administration (FEMA) disas- ter assistance. For example, disaster relief applicants have an incentive to avoid being approved for SBA disaster loans in order to increase the amount of FEMA assistance for which they are eligible. Moreover, the availability of disaster loans reduces individuals’ incentives to purchase disaster-related insurance. More than 90 percent of SBA disaster loans are loans to individuals such as homeowners, not to small businesses. In view of the challenges the SBA has experienced in its administration of this program, as well as the fraud and abuse in the EIDL COVID-19–related program and the IG’s concern that the systemic problems within this lending program undermine the SBA’s work, the next Administration should: l Work with Congress to assess the extent to which disaster loans should be offered by another agency rather than the SBA and explore private-sector channels for administering the loans. l Specify clearly that no new direct lending programs will be developed at the SBA. Eligibility of Religious Entities for SBA Loans. Current SBA regulations46 and SBA Form 197147 make certain religious entities ineligible to participate in several SBA loan programs. The Trump Administration proposed a rule that would remove the provisions on the ground that they violate the First Amendment.48 Subsequent Supreme Court decisions have made their unconstitutionality clearer.49 In an April 3, 2020, letter to Congress pursuant to 28 U.S. Code § 530D,50 the Trump Administration SBA advised that two such provisions violate the Free Exer- cise Clause of the First Amendment and that it therefore would not enforce them. On January 19, 2021, the Trump Administration SBA proposed a rule to remove all of the unconstitutional religious exclusions from its regulations.51 The SBA has not acted on the proposed rule. A similar religious exclusion once appeared in the regulation governing eligibil- ity for SBA Business Loan Programs,52 but it was removed in a June 2022 final rule that noted tension with the First Amendment and Supreme Court precedent.53 That final rule announced that the SBA would nonetheless continue to make religious eligibility determinations for business loan applicants to comply with putative Establishment Clause requirements,54 but Supreme Court precedent and Office of Legal Counsel memoranda refute the notion that large government-backed loan programs raise any Establishment Clause concerns.55

Small Business Administration

Strong
Vector: 67%
Pages: 792-794AI Enhanced

AI Analysis:

"The bill's measures to combat fraud, rescind unused COVID-19 funding, and prohibit assistance after fraud convictions directly address the SBA program integrity and pandemic relief fraud concerns emphasized in the Project 2025 policy section."

Key themes:fraud preventionCOVID-19 relief fundingprogram integrityassistance restrictions after fraud convictiontransparency and accountability

— 760 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. H.R. 7953, Small Business Act, Public Law 85-536, 85th Congress, July 18, 1958, § 2, https://uscode.ecfr.io/ statutes/pl/85/536.pdf (accessed February 17, 2023), amended by H.R. 4877, One Stop Shop for Small Business Compliance Act of 2021, Public Law 117-188, 117th Congress, October 20, 2022, https://www.congress. gov/117/plaws/publ188/PLAW-117publ188.pdf (accessed February 17, 2023). 2. U.S. Small Business Administration, “About SBA: Organization: Mission,” https://www.sba.gov/about-sba/ organization (accessed February 19, 2023). 3. Michael Faulkender, Robert Jackman, and Stephen I. Miran, “The Job-Preservation Effects of Paycheck Protection Program Loans,” U.S. Department of the Treasury, Office of Economic Policy, Working Paper No. 2020-01, December 2020, p. 9, https://home.treasury.gov/system/files/226/Job-Preservation-Effects- Paycheck-Protection-Program-Loans.pdf (accessed February 16, 2023). 4. Kate Rogers, Scott Zamost, Karina Hernandez, and Jennifer Schlesinger, “As Pandemic Aid Was Rushed to Main Street, Criminals Seized on Covid Relief Programs,” CNBC, April 15, 2021, https://www.cnbc. com/2021/04/15/as-pandemic-aid-was-rushed-to-main-street-criminals-seized-on-ppp-eidl-.html (accessed February 16, 2023). 5. Kevin Brewer, “Bills Extend Statute of Limitation for Prosecuting PPP, EIDL Fraud,” Journal of Accountancy, August 10, 2022, https://www.journalofaccountancy.com/news/2022/aug/bills-extend-statute-limitation- prosecuting-ppp-eidl-fraud.html (accessed February 16, 2023). 6. Sacha Pfeiffer, “Virtually All PPP Loans Have Been Forgiven with Limited Scrutiny,” NPR, October 12, 2022, https://www.npr.org/2022/10/12/1128207464/ppp-loans-loan-forgiveness-small-business#:~:text=As%20 COVID-19%20shutdowns%20threatened,early%20days%20of%20the%20pandemic (accessed February 16, 2023). 7. U.S. Small Business Administration, “About SBA: Organization: SBA History,” https://www.sba.gov/about-sba/ organization (accessed February 19, 2023). 8. President Richard Nixon, Executive Order 11518, “Providing for the Increased Representation of the Interests of Small Business Concerns Before Departments and Agencies of the United States Government,” March 20, 1970, in Federal Register, Vol. 35, No. 56 (March 21, 1970), pp. 4939–4940, https://tile.loc.gov/storage-services/ service/ll/fedreg/fr035/fr035056/fr035056.pdf (accessed February 18, 2023). 9. S. 3331, Small Business Amendments of 1974, Public Law 93-386, 93rd Congress, August 23, 1974, https://www. congress.gov/93/statute/STATUTE-88/STATUTE-88-Pg742.pdf (accessed February 19, 2023). 10. S. 299, Regulatory Flexibility Act, Public Law No. 96-354, 96th Congress, September 19, 1980, https://www. congress.gov/96/statute/STATUTE-94/STATUTE-94-Pg1164.pdf (accessed February 19, 2023). 11. Maeve P. Carey, “The Regulatory Flex Act: An Overview,” Congressional Research Service In Focus No. IF11900, August 16, 2021, https://crsreports.congress.gov/product/pdf/IF/IF11900 (accessed February 18, 2023). 12. U.S. Small Business Administration, Office of Advocacy, “The Regulatory Flexibility Act,” https://advocacy.sba. gov/resources/the-regulatory-flexibility-act/ (accessed February 18, 2023). 13. H.R. 644, Trade Facilitation and Trade Enforcement Act of 2015, Public Law No. 114-125, 114th Congress, February 24, 2026, https://www.congress.gov/114/statute/STATUTE-130/STATUTE-130-Pg122.pdf (accessed March 21, 2023). 14. U.S. Small Business Administration, Office of Advocacy, “Advocacy Releases Trade Report,” December 21, 2018, https://advocacy.sba.gov/2018/12/21/advocacy-releases-trade-report/ (accessed March 21, 2023). 15. Associated Press, “Reagan Offers $994-Billion ‘Hard-Choices’ 1987 Budget,” Los Angeles Times, February 5, 1986, http://www.latimes.com/archives/la-xpm-1986-02-05-mn-4369-story.html (accessed February 18, 2023). 16. Testimony of Hon. Hector V. Barreto, Administrator, Small Business Administration, in hearing, The President’s FY 2006 Budget Request for the Small Business Administration, Committee on Small Business and Entrepreneurship, U.S. Senate, 109th Congress, 1st Session, February 17, 2005, p. 8, https://books.google.com/ books?id=UwD-2ICa8k8C&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false (accessed February 18, 2023). See also Report No. 109-49, Summary of Legislative and Oversight Activities During the 108th Congress, Committee on Small Business and Entrepreneurship, U.S. Senate, 109th Congress, 1st Session, March 30, 2005, p. 21, https://www.congress.gov/109/crpt/srpt49/CRPT-109srpt49.pdf (accessed February 18, 2023). — 761 — Small Business Administration 17. Editorial, “The Small Business Administration Needs Reforming,” The Washington Post, December 18, 2016, https://www.washingtonpost.com/opinions/the-sba-needs-reforming/2016/12/18/b639fc4c-c159-11e6-8422- eac61c0ef74d_story.html (accessed February 18, 2023). 18. Robert Jay Dilger, Anthony A. Cilluffo, and R. Corinne Blackford, “Small Business Administration Funding: Overview and Recent Trends,” Congressional Research Service Report for Members and Committees of Congress No. R43486, updated July 14, 2022, Summary, https://sgp.fas.org/crs/misc/R43846.pdf (accessed November 18, 2022). 19. Ibid., p. 2. Emphasis added. 20. Press release, “SBA Announces End-of-Year Capital Benchmarks Showing Historic Support for Small Businesses Under Administrator Guzman,” U.S. Small Business Administration, December 13, 2022, https:// www.sba.gov/article/2022/dec/13/sba-announces-end-year-capital-benchmarks-showing-historic-support- small-businesses-under?utm_medium=email&utm_source=govdelivery (accessed February 18, 2023). 21. USASpending,gov, “Agency Profile: Small Business Administration (SBA),” data through September 29, 2022, https://www.usaspending.gov/agency/small-business-administration?fy=2022 (accessed February 18, 2023). 22. Testimony and prepared statement of Tad DeHaven, Budget Analyst, Cato Institute, in hearing, An Examination of SBA Programs: Eliminating Inefficiencies, Duplications, Fraud, and Abuse, Committee on Small Business and Entrepreneurship, U.S. Senate, 112th Congress, 1st Session, June 16, 2011, pp. 80–90, https://www. govinfo.gov/content/pkg/CHRG-112shrg88373/pdf/CHRG-112shrg88373.pdf (accessed February 18, 2023). 23. Sarah Westwood, “Feds Gave $400 Million in Contracts to Ineligible Firms,” Washington Examiner, September 28, 2014, https://www.washingtonexaminer.com/feds-gave-400-million-in-contracts-to-ineligible-firms (accessed February 18, 2023). 24. Keith Girard, “Inside the SBA’s Monumental Katrina Loan Scandal,” AllBusiness.com, https://www.allbusiness. com/inside-the-sbas-monumental-katrina-loan-scandal-11793824-1.html (accessed February 18, 2023). 25. Arnold & Porter, “CARES Act Fraud Tracker,” last updated January 2, 2023, https://www.arnoldporter.com/en/ general/cares-act-fraud-tracker (accessed February 18, 2023). 26. Jay Edwards, “Bipartisan Call to Crack Down on COVID-19 PPP/EIDL Fraud, Prosecute Fraudsters to the Fullest Extent of the Law,” WRNJ Radio (Hackettstown, New Jersey), October 21, 2022, https://wrnjradio.com/ bipartisan-call-to-crack-down-on-covid-19-ppp-eidl-fraud-prosecute-fraudsters-to-the-fullest-extent-of-the- law/ (accessed March 21, 2023). 27. See, for example, H.R. 7628, IMPROVE the SBA Act, 117th Congress, introduced April 28, 2022, https://www. congress.gov/117/bills/hr7628/BILLS-117hr7628ih.pdf (accessed February 18, 2023). 28. In varying degrees, almost every small-business advocacy organization and trade association engages with the SBA. During periods of hyper-regulatory activity fueled by an activist Administration, the small- business community engages more frequently with the Office of Advocacy through its roundtables and other mechanisms in the hope of warding off costly and intrusive rulemakings. A future conservative Administration can look to the following groups, among others, for support in advancing both SBA and broader policy reform: American Hotel and Lodging Association; Asian American Hotel Owners Association; Association of Builders and Contractors; Associated Equipment Distributors; Ceramic Tile Distributors Association; Consumer Technology Association; Family Business Coalition; Foodservice Equipment Distributors Association; Heating, Air-conditioning, and Refrigeration Distributors International; Independent Bakers Association; Independent Community Bankers Association; Independent Electrical Contractors’ International Association of Plastics Distributors; International Franchise Association; Metals Service Center Institute; National Association of Electrical Distributors; National Association of Manufacturers; National Association of Wholesaler-Distributors; National Fastener Distributors Association; National Marine Distributors Association; National Federation of Independent Business; National Ready Mix Concrete Association; National Small Business Association; Small Business and Entrepreneurship Council; and U.S. Hispanic Chamber of Commerce. Additionally, the small-business community is diverse and broad, and several key groups strongly support SBA lending but vigorously oppose tax, regulatory, and spending policies that are intrusiveness or costly to business. Conservative think tanks and taxpayer organizations like The Heritage Foundation, the Cato Institute, the National Taxpayers Union, Citizens Against Government Waste, the Taxpayers Protection Alliance, and Americans for Tax Reform (among others) also have a stake in an improved and cost-effective SBA.

Small Business Administration

Moderate
Vector: 67%
Pages: 792-794AI Enhanced

AI Analysis:

"The bill's focus on preventing fraud in federal programs, including small business assistance, aligns with Project 2025's concern about fraud and mismanagement in SBA programs, particularly in COVID-19 lending. Both emphasize program integrity and accountability, though the bill does not specifically target SBA restructuring or budget reductions as advocated in Project 2025."

Key themes:fraud preventionprogram integritysmall business assistanceoversight and accountabilitymisuse of public funds

— 759 — Small Business Administration ineffective programs, consolidate duplicative functions, and reallocate resources to more effective programs (such as the Office of Advocacy) or consider reducing the SBA budget. Personnel Challenges The SBA continues to expand programs and initiatives without first document- ing the effectiveness of existing programs or whether they involve areas in which the agency lacks staff expertise. For example, the SBA wants to expand the number of licensed Small Business Lending Companies (SBLCs), implement a new “Mis- sion-Based SBLC,” and remove a requirement for loan authorization within the 7(a) and 504 Loan programs and rely solely on a lender’s documents. Various IG reports have noted that the lack of skilled employees within the SBA has fueled fraud and mismanagement in COVID-19 lending programs, and congressional leaders have expressed alarm about these “changes that haphazardly overextend the SBA’s responsibilities at a time when they are devastated by fraud and underperforming on their core mission of serving the nation’s 33 million small businesses.”74 A conservative Administration should rein in these idealistic and impractical efforts, get current programs under control and properly staffed with people who can manage and perform competently, and outsource efforts where private-sector expertise is appropriate and more efficient. AUTHOR’S NOTE: The preparation of this chapter was a collective enterprise of individuals involved in the 2025 Presidential Transition Project. All contributors to this chapter are listed at the front of this volume, but David Burton and Caleb Orr deserve special mention. The author alone assumes responsibility for the content of this chapter, and no views expressed herein should be attributed to any other individual. — 760 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. H.R. 7953, Small Business Act, Public Law 85-536, 85th Congress, July 18, 1958, § 2, https://uscode.ecfr.io/ statutes/pl/85/536.pdf (accessed February 17, 2023), amended by H.R. 4877, One Stop Shop for Small Business Compliance Act of 2021, Public Law 117-188, 117th Congress, October 20, 2022, https://www.congress. gov/117/plaws/publ188/PLAW-117publ188.pdf (accessed February 17, 2023). 2. U.S. Small Business Administration, “About SBA: Organization: Mission,” https://www.sba.gov/about-sba/ organization (accessed February 19, 2023). 3. Michael Faulkender, Robert Jackman, and Stephen I. Miran, “The Job-Preservation Effects of Paycheck Protection Program Loans,” U.S. Department of the Treasury, Office of Economic Policy, Working Paper No. 2020-01, December 2020, p. 9, https://home.treasury.gov/system/files/226/Job-Preservation-Effects- Paycheck-Protection-Program-Loans.pdf (accessed February 16, 2023). 4. Kate Rogers, Scott Zamost, Karina Hernandez, and Jennifer Schlesinger, “As Pandemic Aid Was Rushed to Main Street, Criminals Seized on Covid Relief Programs,” CNBC, April 15, 2021, https://www.cnbc. com/2021/04/15/as-pandemic-aid-was-rushed-to-main-street-criminals-seized-on-ppp-eidl-.html (accessed February 16, 2023). 5. Kevin Brewer, “Bills Extend Statute of Limitation for Prosecuting PPP, EIDL Fraud,” Journal of Accountancy, August 10, 2022, https://www.journalofaccountancy.com/news/2022/aug/bills-extend-statute-limitation- prosecuting-ppp-eidl-fraud.html (accessed February 16, 2023). 6. Sacha Pfeiffer, “Virtually All PPP Loans Have Been Forgiven with Limited Scrutiny,” NPR, October 12, 2022, https://www.npr.org/2022/10/12/1128207464/ppp-loans-loan-forgiveness-small-business#:~:text=As%20 COVID-19%20shutdowns%20threatened,early%20days%20of%20the%20pandemic (accessed February 16, 2023). 7. U.S. Small Business Administration, “About SBA: Organization: SBA History,” https://www.sba.gov/about-sba/ organization (accessed February 19, 2023). 8. President Richard Nixon, Executive Order 11518, “Providing for the Increased Representation of the Interests of Small Business Concerns Before Departments and Agencies of the United States Government,” March 20, 1970, in Federal Register, Vol. 35, No. 56 (March 21, 1970), pp. 4939–4940, https://tile.loc.gov/storage-services/ service/ll/fedreg/fr035/fr035056/fr035056.pdf (accessed February 18, 2023). 9. S. 3331, Small Business Amendments of 1974, Public Law 93-386, 93rd Congress, August 23, 1974, https://www. congress.gov/93/statute/STATUTE-88/STATUTE-88-Pg742.pdf (accessed February 19, 2023). 10. S. 299, Regulatory Flexibility Act, Public Law No. 96-354, 96th Congress, September 19, 1980, https://www. congress.gov/96/statute/STATUTE-94/STATUTE-94-Pg1164.pdf (accessed February 19, 2023). 11. Maeve P. Carey, “The Regulatory Flex Act: An Overview,” Congressional Research Service In Focus No. IF11900, August 16, 2021, https://crsreports.congress.gov/product/pdf/IF/IF11900 (accessed February 18, 2023). 12. U.S. Small Business Administration, Office of Advocacy, “The Regulatory Flexibility Act,” https://advocacy.sba. gov/resources/the-regulatory-flexibility-act/ (accessed February 18, 2023). 13. H.R. 644, Trade Facilitation and Trade Enforcement Act of 2015, Public Law No. 114-125, 114th Congress, February 24, 2026, https://www.congress.gov/114/statute/STATUTE-130/STATUTE-130-Pg122.pdf (accessed March 21, 2023). 14. U.S. Small Business Administration, Office of Advocacy, “Advocacy Releases Trade Report,” December 21, 2018, https://advocacy.sba.gov/2018/12/21/advocacy-releases-trade-report/ (accessed March 21, 2023). 15. Associated Press, “Reagan Offers $994-Billion ‘Hard-Choices’ 1987 Budget,” Los Angeles Times, February 5, 1986, http://www.latimes.com/archives/la-xpm-1986-02-05-mn-4369-story.html (accessed February 18, 2023). 16. Testimony of Hon. Hector V. Barreto, Administrator, Small Business Administration, in hearing, The President’s FY 2006 Budget Request for the Small Business Administration, Committee on Small Business and Entrepreneurship, U.S. Senate, 109th Congress, 1st Session, February 17, 2005, p. 8, https://books.google.com/ books?id=UwD-2ICa8k8C&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false (accessed February 18, 2023). See also Report No. 109-49, Summary of Legislative and Oversight Activities During the 108th Congress, Committee on Small Business and Entrepreneurship, U.S. Senate, 109th Congress, 1st Session, March 30, 2005, p. 21, https://www.congress.gov/109/crpt/srpt49/CRPT-109srpt49.pdf (accessed February 18, 2023).

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Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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