Is The 8(a) Program Going Away?
Is the 8(a) program being eliminated?
If you’ve been following government contracting in 2025, you’ve encountered rumors, panic, and conflicting information at every turn. Social media is ablaze with claims. Contracting officers are confused. Business owners are worried their certifications are worthless.
I’m going to cut through the noise and give you exactly what’s happening with each major set-aside program—backed by facts from official sources, not speculation. I’ll also reveal which program is positioned stronger than ever heading into 2026.
But first, let me address the elephant in the room that nobody else wants to talk about.
The Uncomfortable Truth About Small Business Certifications
Here’s what will save you years of frustration and wasted money:
Don’t focus on your certification
Develop the best product, solution, or service that you can. Then make it better.
Sell this solution that you specialize in in the private sector first. Make sure your customers love it and provide value.
Once you’ve done that, then start thinking about selling to the government.
Having an outstanding product or service combined with a trained sales team that knows how to build relationships and navigate the federal market is what makes you successful in government contracting.
As a former government acquisitions officer, I can state this with certainty: **I never once awarded a contract to a company simply because they held a set-aside certification.**
Not once.
The company with the best product/service/technology is always who should win.
Also—
There is no certification you can get where contracts are going to start falling out of the sky into your lap.
I have advised hundreds of companies that went to great lengths to get certifications like 8A or Women-Owned Small Business, only to realize that they have to start right where everybody else does.
With that essential truth established, let’s examine exactly what’s happening with these programs in 2025.
Executive Orders Reset the Playing Field
In January 2025, the Trump administration issued two executive orders that fundamentally shifted federal contracting policy:
Executive Order 14151 (January 20): “Ending Radical and Wasteful Government DEI Programs and Preferencing”
Executive Order 14173 (January 21): “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”
The immediate effect: SBA reset all federal small business contracting goals to their statutory minimums for FY2025. Gone are the elevated, agency-specific targets from the Biden era.
The new uniform goals across all federal agencies:
- 23% to small businesses overall
- 5% to Small Disadvantaged Businesses (SDB, which includes 8(a) firms)
- 5% to Women-Owned Small Businesses (WOSB)
- 5% to Service-Disabled Veteran-Owned Small Businesses (SDVOSB) *(increased from 3% by Congress in FY2024)*
- 3% to HUBZone firms
This represents a dramatic departure from Biden’s policy of pushing Small Disadvantaged Business participation to 15% by 2025. Instead, we’re back to the “not less than 5%” floor set by the Small Business Act decades ago.
**Critical clarification:** These executive orders did NOT eliminate the set-aside programs themselves, which are established by statute and can only be terminated by Congress or struck down by courts. But they did eliminate the additional pressure on agencies to exceed the minimum goals.
The FAR Part 19 Overhaul: The Biggest Change in 40 Years
Perhaps more consequential than the executive orders is the Revolutionary FAR Overhaul—a complete rewrite of Federal Acquisition Regulation Part 19 (small business programs), announced in September 2025. This is the first comprehensive overhaul in over four decades.
What Stayed the Same
The cornerstone ”Rule of Two” for new standalone contracts remains intact: If at least two capable small businesses are expected to bid, agencies must set aside the contract for small businesses.
This is crucial—the fundamental protection for small businesses in open competition is preserved.
What Changed
Task orders under multiple-award contracts are now discretionary set-asides.
Read that again. It’s the single biggest change affecting small businesses.
Under previous rules (with some ambiguity), agencies were generally required to set aside task orders for small businesses if at least two small firms on the contract vehicle could perform the work.
Under the new FAR: Contracting officers have **discretion—not obligation**—to set aside task or delivery orders for small businesses, even when multiple qualified small contractors are available.
Small businesses worry this could significantly reduce opportunities. The counter-argument from the administration: Agencies retain the *ability* to set aside orders and are encouraged to do so to meet their goals—it’s just not mandatory.
Changes Specific to 8(a) Contracts
Competition-first requirement: Before awarding an 8(a) sole-source contract (even below the thresholds), contracting officers must now attempt a competitive 8(a) acquisition first—ideally using an existing contract vehicle or opening bids to multiple 8(a) firms.
Only when no suitable 8(a) contractors can be found or time is critical would a sole-source award be justified.
The 8(a) sole-source dollar limits were raised (to $8.5M for manufacturing and $5.5M for other contracts), but this is paired with the mandate to compete below those limits whenever possible.
Result: Fewer easy sole-source 8(a) awards. More competition among 8(a) firms.
Automatic release for follow-on contracts:*Agencies can now move follow-on requirements out of 8(a) and into HUBZone, SDVOSB, or WOSB programs without obtaining SBA’s formal permission.
Previously, if an agency had an incumbent 8(a) contract and wanted to take it out of the program, they needed SBA approval. Now contracting officers can directly set follow-ons aside for other socioeconomic categories.
This introduces legal uncertainty (SBA’s own regulations still require a release), but agencies have been given the green light to reallocate work.
Positives for small businesses:
- Over 1,600 burdensome requirements removed or modified
- One-third fewer unique government requirements for commercial acquisitions
- Improved post-award debriefings
- Encouragement of technical demonstrations instead of costly proposal-writing contests
- Emphasis on “on-ramps” to add small firms to existing contracts periodically
Negatives for small businesses:
- Loss of guaranteed set-asides on the task orders where most spending occurs
- Reduction in sole-source 8(a) opportunities
- More reliance on agency goodwill and relationships (since more is discretionary)
Bottom line:*The FAR overhaul significantly reduces red tape, which helps nimble businesses. But it also weakens longstanding safeguards for small business participation in the massive task-order marketplace.
The 8(a) Program: Operating Under Intense Scrutiny
The 8(a) Business Development Program has been hit harder than any other set-aside in 2025.
The Legal Transformation
In July 2023, the federal court case *Ultima Services v. USDA* struck down SBA’s use of race-based presumptions of social disadvantage. SBA could no longer automatically accept an applicant as socially disadvantaged based solely on membership in an identified minority group.
The result: SBA temporarily halted all new 8(a) admissions in mid-2023 and required all existing participants who had relied on the presumption to submit a social disadvantage narrative.
By early 2024, SBA had updated processes to comply: Now **every 8(a) applicant must individually demonstrate** how they’ve faced social disadvantage—specific instances of prejudice or bias.
The program has been legally “de-raced.” No group-based presumptions. Every participant must be individually certified as disadvantaged.
The Numbers Tell the Story
Only 66 companies were admitted into 8(a) by August 2025.
Compare that to over **550 new entrants in 2024.
That’s an 88% drop in new admissions.
In June 2025, SBA Administrator Kelly Loeffler announced a **full-scale audit of the entire 8(a) program** spanning 15 years of data.
This came after:
- A DOJ investigation exposed a bribery scheme where a federal contracting officer steered $550+ million in contracts to certain 8(a) firms in exchange for over $1 million in bribes
- Another case revealed an ineligible firm exploiting an 8(a) joint venture to win an $800 million award while its partner was being banned from contracting
The audit examines “high-dollar, limited-competition awards” to identify fraudulent participants and strengthen vetting.
The Policy Shifts
Beyond the legal and administrative changes:
- The SDB contracting goal was slashed from 15% to 5%
- The “bona fide place of business” rule for 8(a) construction contracts returned September 30, 2025 (requiring 8(a) construction firms to maintain a local office in their work area—a significant geographic restriction)
- Agencies no longer have individual SDB targets; everyone is now at the flat 5% minimum
- The “once 8(a), always 8(a)” rule for follow-on contracts has ended
What This Means
**The 8(a) program is NOT being eliminated.** Despite social media panic, it cannot be terminated without Congressional action or a court ruling it unconstitutional—neither has occurred.
But the program is absolutely operating under pressure:
- Stricter eligibility verification post-*Ultima*
- Aggressive fraud enforcement
- Lower agency targets (5% vs. prior elevated goals)
- More competition required, fewer sole-source awards
- Slower approval times
- Intense audit oversight
Former officials note this may result in “fewer contracts awarded to 8(a) businesses” and a “chilling effect” where contracting officers become more hesitant.
However, there’s also strong bipartisan Congressional support for the core mission of 8(a). The program continues operating within updated constraints.
Strategic reality: If you’re counting on an 8(a) certification to carry your business, you’re in trouble. But if you have exceptional capability? You’ll still win—perhaps even with less competition from firms that were gaming the system.
***Without any changes, 8(a) businesses have always struggled to
Utilize the 8(a) certification effectively
Transition off of this certification.
If you’re interested in learning how to effectively sell to the government and where a certification can actually help, I encourage you to check out the GovClose certification program.
Women-Owned Small Business: Stable with Stricter Control Requirements
The WOSB program maintains its 5% federal contracting goal—unchanged from the statutory target that’s been in place for years.
What Changed in 2025
In January 2025, new SBA regulations took effect focusing on one critical question: “Is the woman owner actually running this business?
New requirements:
- The woman who qualifies the business must work full-time during normal working hours
- She cannot have outside employment that prevents her from controlling the company
- If she takes any outside work, she must notify SBA and demonstrate it won’t interfere
- If she’s not present at the business during normal hours, there’s a presumption she’s not in control unless proven otherwise
Decertification protocols tightened:*If your WOSB status is successfully protested and SBA determines you’re ineligible, you have **2 business days** to update SAM.gov and notify all contracting officers.
Critically: You cannot self-certify again after being decertified. Attempting to do so could constitute criminal fraud.
The Reality Check
SBA wants to ensure WOSB benefits flow to genuine women-owned firms, not shell companies or fronts where a woman is the nominal owner while someone else runs the business.
No negative changes to the program structure itself:
- The 5% goal remains unchanged
- Agencies still collectively need to hit their targets
- WOSB sole-source rules remain (up to $7M manufacturing/$4.5M other contracts)
- Congress is actually pushing for MORE transparency and accountability in WOSB reporting
Bottom Line
If you’re a legitimate woman-owned business where you actively manage operations—you’re in excellent shape. The program is stable, and agencies still need to meet their 5% goals.
If you were operating as a nominal owner or front company? 2025 shut that down.
Once again: having an actual business with real capability matters more than ever.
HUBZone: Modernized and More Accessible (If You’re Compliant)
The HUBZone program continues with its 3% government-wide goal. Historically, this has been the most difficult goal to meet—the federal government has never hit 3% HUBZone contracting.
The 2025 Modernization
HUBZone underwent significant regulatory updates, most of them making qualification easier for legitimate businesses:
Major Improvements:
- Employee residency requirement reduced to 90 days (down from 6 months) before new hires count toward your 35% requirement
- “Legacy Employee” rule introduced: You can keep up to 4 employees counted as HUBZone residents even if they’ve moved out of the zone, provided at least one current employee still lives in a HUBZone
- Recertification reduced to once every 3 years instead of annually
- Grace periods added for temporary compliance issues
### The Trade-Off: Stricter Enforcement
In exchange for that flexibility, SBA demands proof of legitimacy:
- Surprise audits without advance notice
- Verification that employees counted as HUBZone residents are actually performing work (not just names on paper)
- Part-time employees must work at least 10 hours per week to count
- You must meet all HUBZone criteria at the time you submit your offer, not just at certification
- Fall below 35% residency during contract performance? You get a 12-month grace period to fix it
- Fall below 20%? You must self-report and face potential immediate decertification or debarment
The Bigger Picture
Some agencies may shift focus toward HUBZone opportunities as they reduce reliance on 8(a) to meet small business goals. The 3% HUBZone goal has historically been underachieved, creating potential growth opportunities.
The FAR changes that allow follow-on contracts to shift out of 8(a) could benefit HUBZone firms—agencies now have flexibility to move contracts into HUBZone set-asides without jumping through bureaucratic hoops.
Bottom Line
HUBZone is simultaneously more accessible and more strictly enforced.
If you’re a legitimate business operating in a HUBZone with real employees living there, the new rules are fantastic. Take advantage of the 90-day residency, the legacy employee provision, and the 3-year recertification cycle.
If you were manipulating addresses or creating phantom employee residencies? Those surprise audits will catch you.
The program enjoys broad bipartisan support (it helps underserved communities across urban and rural America) and isn’t going anywhere.
SDVOSB
Now we arrive at Service-Disabled Veteran-Owned Small Business—and I’m going to tell you something that might surprise you.
While every other set-aside program has faced scrutiny, lawsuits, goal reductions, or major regulatory upheaval...
SDVOSB is stronger than it’s ever been.
Why SDVOSB Stands Apart
The goal increased. Congress raised the SDVOSB contracting goal from 3% to 5% in the FY2024 National Defense Authorization Act (effective December 2023). This puts SDVOSB on par with SDB and WOSB at 5%.
The Trump administration kept that 5% target in place for FY2025. There was no reduction. No rollback. No controversy.
Certification is now more credible. As of January 2023, all SDVOSB firms must be certified by SBA through the VetCert program (transferred from VA). This closed self-certification loopholes and strengthened the program’s integrity.
By 2025, the new certification regime is fully operational, preventing fraud by imposters while making the program more defensible.
SDVOSB doesn’t involve race or gender preferences. This is critical. The executive orders and “merit-based contracting” initiatives that created uncertainty for 8(a) and raised questions about WOSB? They don’t apply to SDVOSB.
The program is based on military service and sacrifice—not immutable characteristics. There’s zero political appetite on either side of the aisle to reduce veteran contracting opportunities.
The Current Environment
Agencies need to hit 5% SDVOSB goals. With the uniform goal structure, every federal agency must direct at least 5% of contracting dollars to SDVOSBs—up from the previous 3%.
No major negative reforms targeted SDVOSBs in 2025. While 8(a) faces audits and WOSB faces control verification, SDVOSB sailed through relatively unscathed.
The administration continues emphasizing veteran entrepreneurship. From National Veterans Small Business Week proclamations to agency guidance, veteran-owned businesses remain a priority.
The Benefits of the FAR Changes
The general FAR changes apply to SDVOSB as well (discretionary task-order set-asides, less rigid Rule of Two application). But SDVOSBs also benefit from:
- The flexibility to capture follow-on contracts that shift out of 8(a)
- Agencies seeking to balance their socioeconomic portfolio may channel more work to SDVOSBs
- The higher 5% goal creates increased demand for qualified SDVOSB contractors
Pending Congressional Support
There’s even bipartisan legislation in the works to strengthen SDVOSB further:
- Bills to improve agency guidance and accountability for hitting SDVOSB goals
- Proposals to allow a veteran’s child (not just surviving spouse) to temporarily maintain SDVOSB status after the owner’s death, protecting business succession
- House Small Business Committee actively working on SDVOSB support measures
The Strategic Position
The SDVOSB program has:
- The strongest legal foundation (based on service, not demographics)
- The clearest certification process (SBA VetCert)
- A higher contracting goal than ever before (5%)
- Growing political support across party lines
- No program faces less threat or has more positive momentum heading into 2026
While 8(a) firms deal with audits, WOSB companies prove full-time devotion, and HUBZone businesses navigate new compliance rules, SDVOSB contractors are operating in the most favorable environment in program history.
Cutting Through the Misinformation
With these rapid changes, misinformation has spread rapidly. Let’s address the most common false claims:
“Set-aside programs have been abolished”
FALSE. None of the small business socioeconomic programs (8(a), WOSB, SDVOSB, HUBZone) have been eliminated. They’re written in law and remain fully in effect. The executive orders modified policy emphasis and procedures—not the existence of the programs.
“Agencies can’t use set-asides anymore because of the executive orders”
FALSE. Some contracting officers mistakenly believed they must cancel small-business set-asides due to Executive Order 14173. This is a misinterpretation. The statutory small-business programs remain mandatory. Agencies must still meet their goals and apply the Rule of Two on new contracts.
“The 8(a) program was struck down by courts”
MISLEADING. The Ultima case ended the race-based presumption of disadvantage—not the program itself. 8(a) continues operating with individual disadvantage determinations. No court has invalidated the program.
“All 8(a) firms lost their eligibility”
FALSE. There was temporary disruption in 2023-2024 when SBA required social disadvantage narratives. But 8(a) firms continue operating and receiving contracts. The program is active with tighter qualification scrutiny.
“Congress is eliminating small business set-asides”
MISLEADING. No enacted law in 2025 eliminates set-aside authorities. In fact, Congress raised the SDVOSB goal to 5% and is considering bills to strengthen (not gut) small business programs. Individual members have floated reduction ideas, but nothing has passed.
“The 8(a) program is unconstitutional and will be eliminated soon”
SPECULATIVE. The legal foundation is being challenged in various ways, and experts note that post-affirmative-action court precedents could lead to future lawsuits. But as of now, no court has invalidated the 8(a) or other small business programs in their entirety. SBA has adjusted to be more legally defensible.
Your Action Plan
If you’re just starting out: Build something remarkable. Acquire commercial customers. Prove your solution works in the competitive marketplace. Train your sales team on government contracting fundamentals. THEN pursue the certification that aligns with your business and circumstances.
If you’re already certified: Stop relying on the set-aside to do your sales work. Invest in your product. Invest in your team. Invest in training and relationship-building. Make your company so valuable that buyers want to work with you regardless of your certification status.
That’s how you succeed in government contracting in 2025 and beyond—regardless of what happens to any individual program.
Ready to go pro?
The GovClose Professional Training Program is built for people ready to commit to learning a new skill set, implementing that skill set, and working with a community of professionals who are serious about winning in the federal market.
If you think you have what it takes, set up an enrollment interview with the GovClose advisory team.
