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Small Disadvantaged Business Goal Reduced as President Repeals Executive Order 14091
On January 20, 2025, the President repealed Executive Order 14091, a directive that had established a goal for Small Disadvantaged Businesses (SDBs) to secure 15% of federal prime contracting dollars by Fiscal Year 2025. The repeal marks a significant shift in federal procurement policy, returning the SDB goal to its statutory baseline of 5%, as outlined in 15 U.S.C. 644.
Executive Order 14091, issued under the previous administration, formalized a plan to increase SDB prime contract spending incrementally over several years—starting with 11% in FY 2022, 12% in FY 2023, and so on—culminating in the 15% target for FY 2025. Its repeal effectively halts this progression and resets the federal government’s commitment to the statutory minimum established by Congress.
The change does not eliminate support for SDBs, nor does it lower the goal below the 5% statutory floor. Federal agencies remain obligated to meet or exceed the 5% SDB contracting goal, but the elimination of the higher target could reduce momentum for initiatives aimed at expanding opportunities for disadvantaged businesses.
The repeal is part of a broader review of executive orders and actions implemented by previous administrations.
Click here to read the full list of revoked executive orders and actions.
President Biden’s recent repeal of Executive Order 14091 has caused a stir in the small disadvantaged business community. The order, which set a goal for federal agencies to award at least 10% of their contracts to small disadvantaged businesses, has now been effectively eliminated.
This decision has left many small disadvantaged business owners feeling disheartened and concerned about their future opportunities for government contracts. Without this goal in place, there is no longer a guaranteed level of support for these businesses to compete on a level playing field with larger, more established companies.
The impact of this repeal is likely to be felt across the small disadvantaged business community, as many rely heavily on government contracts to sustain and grow their operations. Without the assurance of a set-aside goal, these businesses may struggle to secure the contracts they need to thrive.
It remains to be seen how this decision will ultimately impact small disadvantaged businesses and their ability to compete in the federal marketplace. For now, many are left wondering what the future holds for their businesses in light of this significant policy change.
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small disadvantaged business, SDB goal, President repeals Executive Order 14091, small business, minority-owned business, government contracting, federal contracts, disadvantaged business owners, small business goals
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