# Congress Considers Contractor Donation Limits

Democratic lawmakers are advancing the proposed Close Campaign Cash-for-Contracts Loophole Act, which would extend the federal contractor campaign-contribution ban to corporate officers, contractor affiliates, and people with at least a 5% ownership interest. If enacted, the restrictions would apply from the start of contract negotiations through one year after a contract ends, and prohibited contributions would be turned over to the government. Federal contractors should assess how the proposal could affect political activity by executives, affiliates, and significant owners; the restrictions are proposed, not currently enacted.

- The proposal could broaden contractor compliance and governance considerations beyond the contracting entity to certain related organizations and individuals.
- Contractors can identify affected officers, affiliates, and 5%-or-greater owners and assess their current contribution policies against the proposed coverage.
- Because the bill is advancing in Congress, companies should account for its legislative status when evaluating potential future controls on political contributions during federal procurement.

**Jurisdictions:** federal
**Topics:** Policy
**Published:** November 02, 2026

### Government Entities
- U.S. Congress (Congress)
- U.S. House of Representatives (House)
- U.S. Senate (Senate)
- House Oversight and Government Reform Committee

### Vendors
- SpaceX (Federal contractor)

### Key Quotes
> Right now, millionaires and billionaires who own or control companies that contract with the federal government can evade protections meant to prevent federal contractors from engaging in pay-to-play schemes. The Close Campaign Cash-for-Contracts Loophole Act would fix a gap in the law that allows executives, major shareholders and corporations affiliated with federal contractors to make contributions to political parties and candidates in an effort to gain an unfair advantage in securing or maintaining federal contracts.
> — Debra Perlin, Vice President for Policy at CREW

### Sources
- [Musk is the target of a new Democratic bill to curtail political donations from federal contractors  - Government Executive](https://www.govexec.com/oversight/2026/11/musk-target-new-democratic-bill-curtail-political-donations-federal-contractors/416980) - GovExec.com