Congressman Cory Mills Introduces Bill to Expand Opportunities for Employee-Owned Businesses in Department of War Contracting

Washington, D.C. — Congressman Cory Mills (FL-07) today introduced the Empowering Small-Business Ownership Participation (ESOP) Act, legislation that expands access for employee-owned businesses to compete for critical Department of War contracts. The Department of War (DOW) recently created a pilot program intended to bring more employee-owned small businesses into its supply chain, known as the Employee Stock Ownership Plan (ESOP) Pilot Program. However, the program is currently unusable for nearly all ESOP companies because it requires participating firms to be 100% employee- owned—a threshold far above that used by the Small Business Administration's 30% ownership requirement. With roughly 6,300 ESOP companies nationwide, this hard cap shuts out nearly all of the employee-owned businesses that could otherwise strengthen DOW procurement.

The Empowering Small-Business Ownership Participation (ESOP) Act fixes this by aligning the DOW’s rule with the long-standing federal definition of an ESOP, which requires 30% employee ownership. Changing the program standard from “wholly-owned” to “owned” opens the door for thousands of legitimate ESOP businesses to finally compete, increasing competition, innovation, and supply-chain resilience across the Defense Industrial Base.

“Employee-owned companies strengthen our economy, empower workers, and deliver proven value and innovation,” said Rep. Mills. “But the federal government shouldn’t impose unnecessary barriers that prevent these businesses from competing. My bill ensures more employee-owned companies can participate in Department of War contracting, enhancing competition, innovation, and outcomes for the American taxpayer.”

By aligning the DOW pilot program with existing federal definitions, the ESOP Act expands access for employee-owned small businesses and will drive stronger competition, further encouraging American innovation, while reinforcing a resilient industrial base for America’s national security.