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Appropriators Would Block Women's Set-Aside Rule

The Senate Appropriations Committee has voted to block implementation of SBA’s limited set-aside for woman-owned businesses.

The provision is included in the 2009 Financial Services appropriation bill, S. 3260, which provides funding for SBA. The committee approved the bill on July 10.

Section 522 prohibits spending any money to implement the program proposed by SBA, which would allow set-asides to women in only four industries.

SBA proposed the limited set-aside program in December, seven years after it was authorized by Congress. A large number of Congress members protested that the limited nature of the program violated the intent of Congress. SBA said any broader set-aside would not stand up to a court challenge.

The powerful appropriations committees usually get their way, but their wishes may not prevail this time. Leaders of the Democratic majority in Congress have said 2009 appropriations bills are not likely to be enacted this fall because of various disputes. Instead, the leadership plans to fund federal agencies through a continuing resolution, perhaps until a new president takes office in January.

Last year the House passed legislation that would have permitted set-asides for woman-owned firms in 22 industries, but the Senate never acted on the bill.


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