Senate Small Business Committee advances Paul amendment to S.298; several Markey amendments fail

The Senate Committee on Small Business and Entrepreneurship considered S.298, the Returning SBA to Main Street Act, which would relocate portions of the Small Business Administration workforce outside the Washington, D.C., metropolitan area and set percentage targets for redistributing staff.

The chair described the bill as a way to “relocate and reallocate the SBA's workforce to locations outside of the DC Metro Area, reduce telework, and redistribute SBA resources throughout America.” The bill’s sponsors were identified on the record as including senators Blackburn and Scott of South Carolina.

Ranking Member Markey said members had “real concerns that must be addressed before this bill can be implemented,” arguing the measure could harm employee recruitment and retention, and called it “anti union and anti worker.” Markey added that his office had prepared amendments, including one directing the Government Accountability Office to do a cost-benefit analysis before implementing relocations.

Senator Rand Paul offered Amendment No. 1, which “simply directs the small business administrator to only relocate employees if the location determines that doing so will reduce the federal government's costs.” The chair said she supported that amendment. The committee approved the Paul amendment by roll call, with the clerk reporting the vote as 10 yeas and 9 nays.

Markey’s proposed substitute (identified in the record as Markey amendment No. 3), which would have required a GAO cost-benefit study and other protections, failed on a roll call, 9 yeas to 10 nays. A Shaheen substitute that would have required a good-cause provision before removal of any SBA employee also failed, 9 yeas to 10 nays. Subsequent Markey amendments seeking employee relocation protections and restrictions on non‑SBA access to SBA data (identified in the record as Markey amendment No. 1 and Markey amendment No. 4) likewise were not agreed to, each failing by recorded votes of 9 yeas to 10 nays.

Senator Shaheen and others emphasized the value of district and field offices for disaster recovery and local assistance, while supporters of the underlying bill argued the measure would put more staff in field offices and better serve small businesses across the country.

Under a previously stated unanimous-consent agreement, the committee postponed further proceedings on S.298 after the amendments were considered. No final passage of the underlying S.298 occurred during the session; the measure remains pending before the committee.

Votes at a glance: Paul amendment to S.298 — agreed, 10–9. Markey amendment No. 3 (GAO cost‑benefit substitute) — failed, 9–10. Shaheen substitute (good‑cause removal provision) — failed, 9–10. Markey amendment No. 1 (employee protections) — failed, 9–10. Markey amendment No. 4 (restrict non‑SBA access to records) — failed, 9–10.

The committee recorded substantial debate about the effects on career employees and compliance with collective‑bargaining agreements, and members signaled intent to continue negotiations outside the markup. The chair indicated the committee would provide members with a list of agreed amendments in advance at future markups to streamline consideration.