On January 20, 2025, the President repealed Executive Order 14091, a directive that had established a goal for Small Disadvantaged Businesses (SDBs) to secure 15% of federal prime contracting dollars by Fiscal Year 2025. The repeal marks a significant shift in federal procurement policy, returning the SDB goal to its statutory baseline of 5%, as outlined in 15 U.S.C. 644.
Executive Order 14091, issued under the previous administration, formalized a plan to increase SDB prime contract spending incrementally over several years—starting with 11% in FY 2022, 12% in FY 2023, and so on—culminating in the 15% target for FY 2025. Its repeal effectively halts this progression and resets the federal government’s commitment to the statutory minimum established by Congress.
The change does not eliminate support for SDBs, nor does it lower the goal below the 5% statutory floor. Federal agencies remain obligated to meet or exceed the 5% SDB contracting goal, but the elimination of the higher target could reduce momentum for initiatives aimed at expanding opportunities for disadvantaged businesses.
The repeal is part of a broader review of executive orders and actions implemented by previous administrations.
Click here to read the full list of revoked executive orders and actions.