Countering Hate Against Israel by Federal Contractors Act
The Countering Hate Against Israel by Federal Contractors Act would bar federal agencies from contracting with any company that is engaged in a boycott of Israel. Beginning January 1, 2026, a company must certify that it is not boycotting Israel at the time a covered contract is entered into, and the contract must include a clause prohibiting such boycott for the contract term. If a federal agency later determines that a company violated the prohibition, the agency must notify the company within 30 days and post a notice on its website; the contract would be terminated 30 days after the notice unless the company ends the boycott to the agency’s satisfaction. The bill uses the existing appeals process for bid/procurement disputes and includes protections for First Amendment rights and status issues. It defines who counts as a “company,” what counts as a “covered contract,” and what constitutes “engaging in a boycott of Israel,” including actions taken in response to boycott calls or that discriminate by nationality, national origin, or religion, or lack a valid business reason. The act would apply to federal government entities (i.e., federal agencies and their instrumentalities) and contracts above $100,000, with a procurement-focused approach rather than broad political sanction.
Key Points
- 1Prohibition and certification: Starting in 2026, heads of federal agencies may not contract with a company that is engaging in a boycott of Israel unless the company certifies it is not participating in such a boycott at the time of entering the contract; contracts must include a prohibition on future boycott activity during the term.
- 2Notices and enforcement: Agencies must include a written notice about the prohibition in solicitations; if a company is found to be boycotting, the agency must notify the company within 30 days and publish the finding on its website; the contract is terminated 30 days after notification unless the company ends the boycott to the agency’s satisfaction.
- 3Appeals: The standard appeals process for federal procurement protests (Chapter 71 of Title 41 U.S.C.) applies to contracts covered by the act.
- 4Constitutional and policy guardrails: The act explicitly states it does not infringe First Amendment rights and does not take a position on final status issues related to the Palestinian-Israeli conflict.
- 5Definitions and scope:
- 6- Company: any non-individual business entity with more than 10 employees (including various forms like corporations, partnerships, LLCs, etc., and all affiliates/subsidiaries).
- 7- Covered contract: contracts > $100,000.
- 8- Engaging in a boycott of Israel: actions intended to limit business with Israel or with Israeli-related entities, including actions taken in response to calls for a boycott or actions that discriminate by nationality, national origin, or religion, or lack a valid business reason; must include a company statement about participation or compliance.