How Does Federal Uncertainty Impact Small Business Contractors?

Small business contractors in the United States face operational and financial challenges due to unpredictable federal policies, including sudden contract terminations, funding freezes, and shifting tariffs. These changes impact a range of sectors, such as IT, consulting, and agriculture, and lead to lost revenue, layoffs, and reduced investment. Diversity, equity, and inclusion program reversals further affect women-owned, veteran-owned, and minority-owned businesses. Advocacy groups are urging Congress to enforce oversight, ensure proper allocation of funds, and maintain open communication between agencies and contractors.

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