Cape News

A bill introduced by U.S. Senator Josh Hawley (R-Mo.), known as the Time to Choose Act, has been passed by the U.S. Senate Committee on Homeland Security and Governmental Affairs (HSGAC).

The legislation, first proposed by Senator Hawley in 2022 and reintroduced earlier this year, seeks to prevent the Department of Defense (DOD) and other federal agencies from contracting with consulting firms such as McKinsey & Company that also have business ties with the Chinese government or its affiliates.

Senator Hawley stated, “American companies should be dedicated to advancing American interests, but firms like McKinsey are compromised—and our government is rewarding them.” He added, “My bill would require government contractors to choose between standing with the U.S. in its efforts to protect Americans against China's imperial ambitions or standing with the CCP, and I’m glad the committee has advanced it.”

The Time to Choose Act aims to:

- Prohibit federal agencies from contracting with consulting firms that hold a contract with certain foreign entities, including the Chinese government and Chinese Communist Party.

- Impose penalties on consulting firms that intentionally hide or misrepresent contracts with certain Chinese and other foreign entities. These penalties include:

- Terminating affected federal contracts.

- Debarring relevant firms from future work with the federal government.

- Requiring relevant firms to pay damages equivalent to three times the amount spent by the U.S. government, pursuant to the False Claims Act.