Jobs & Education

Federal Contracting Jobs Open Up in Skills-Based Bill

Federal contracting jobs may drop degree requirements as Congress passes the Skills-Based Federal Contracting Act, now awaiting the president's signature.

by Trends DeskOctober 17, 20263 min read

Federal Contracting Jobs Open Up in Skills-Based Bill

The Senate has unanimously passed a bill that would strip degree requirements from federal contracting jobs, sending the measure to President Donald Trump's desk. The Skills-Based Federal Contracting Act would bar agencies from demanding minimum education credentials in contract solicitations unless they can justify the requirement in writing. The bill, H.R. 5235, cleared the House in February and advanced out of a Senate committee in August before its unanimous passage late on October 1. It was led by Rep. Nancy Mace, R-S.C., and co-sponsored by Democrats Raja Krishnamoorthi of Illinois and Marie Gluesenkamp Perez of Washington, a bipartisan push to open federal contracting jobs to skilled workers without four-year degrees. Under the legislation, federal agencies could only include minimum education or experience requirements in contract solicitations if they provide a written explanation showing those standards are critical to the mission. Supporters say opening federal contracting jobs this way would expand the labor pool, increase competition among bidders and ensure taxpayer dollars go to the most qualified talent rather than unnecessary credentials. ## What the Federal Contracting Jobs Bill Does "This opens up thousands of jobs to people who deserve them, and so it is a jobs bill," said Nancy Mace at a press briefing. "It is a middle-class American workers bill. If you have the skills, you should get the job." Mace, who is retiring from Congress at the end of this term, said the bill would be transmitted to the White House within days. The idea traces back to the technology sector. Mace has recounted congressional testimony from January 2024 in which an IBM executive said federal contractors are rarely able to place a worker without a four-year degree on a technology services contract, regardless of qualifications, a barrier the bill's backers say shuts out capable talent from federal contracting jobs. ## Skills Over Degrees in Federal Contracting Jobs The push reflects a broader shift toward skills-based hiring across the U.S. economy, as employers from state governments to major corporations drop degree requirements in favor of demonstrated ability. Backers argue that credentials on paper are a poor proxy for competence, and that the federal government, as the nation's largest buyer of services and the biggest source of federal contracting jobs, should lead the change. The stakes go beyond hiring. When federal contracts describe labor categories by degree and years of experience, contractors bill by the hour for people meeting those specifications, effectively setting a floor under prices. Analysts say the change could also reshape how agencies evaluate bids, shifting weight from resumes to past performance and demonstrated results, potentially lowering costs for taxpayers on federal contracts. ## What's Next for the Bill Mace said she has received no indication yet whether Trump will sign the bill or veto it. The White House has not yet scheduled a signing ceremony, and officials declined to say when the president will act on the measure. Getting the legislation through both chambers "is a huge step," she said, adding that supporters will know "in the next couple of days" where the measure is headed. If signed, agencies would need to rewrite solicitation templates and train contracting officers on the new justification standard. Workforce advocates say the measure could be transformative for the millions of Americans skilled through military service, apprenticeships, boot camps and community college certificates rather than bachelor's degrees. For them, federal contracting jobs have long been effectively closed, a wall the bill aims to tear down. If the president signs the act, Washington would become the country's most prominent convert to skills-based hiring, and federal contracting jobs would be open to talent on merit alone, changing how federal contracts value people.

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