Restoring America's Industrial Base: The Role of Small Businesses in National Security

The House Committee on Small Business held a hearing on June 4, 2026, titled "Restoring America's Industrial Base: The Role of Small Businesses in National Security." The discussion focused extensively on the challenges and opportunities for small businesses within the defense industrial base. Key topics included the decline in the number of small businesses contracting with the Department of Defense despite increased contract dollars, the burdensome regulatory and compliance environment, and the need for acquisition process reforms to improve small business participation. Witnesses highlighted issues such as the impact of the Cybersecurity Maturity Model Certification (CMMC) costs on small firms, the shrinking defense industrial base due to consolidation and contract terminations, and the importance of programs like the Small Business Innovation Research (SBIR) and the rule of two in preserving small business opportunities. Legislative proposals discussed included expanding size standards to better reflect modern technology firms, improving subcontracting regulations, enhancing transparency and debriefing processes, and codifying protections for small business competition. The hearing underscored the critical role of small businesses in innovation, national security, and economic resilience, while emphasizing the need for streamlined procurement policies and increased support from agencies like the Small Business Administration to sustain and grow the small business defense supplier base.