Freedom from Government Competition Act of 2025

The Freedom from Government Competition Act of 2025 would shift the federal government’s practice toward sourcing most goods and services for operating and managing federal agencies from private sector suppliers, with limited exceptions. Under the bill, agencies would normally obtain needed goods and services from commercial sources unless a specific exemption applies (such as legally required government production, or a determination that national defense, homeland security, or inherently governmental functions require government delivery). For non-exempt items, procurement would occur through privatization, private-sector contracts using competitive procedures, or a formal public-private competitive sourcing analysis to determine whether private sector performance provides the best value. The bill also allows federal employees to resume providing certain previously privatized goods or services after a competitive analysis demonstrates best value in favor of internal provision. It would require the Office of Management and Budget (OMB) to issue regulations and to conduct annual studies and reporting to Congress, including a plan to transfer remaining commercial activities to the private sector within five years of each report. In short, the bill codifies a broad policy favoring private-sector provision of federal goods and services, subject to specific exemptions and a structured transition process, with annual oversight and transfer timelines to push remaining activities toward privatization.