The SBA 8(a) Business Development Program, a long-standing federal initiative to support small businesses owned by “socially and economically disadvantaged” individuals, has come under intense scrutiny. On Jan. 16, 2026, Secretary of War Pete Hegseth announced a major crackdown on the program’s use in Pentagon contracting. He described it as “the oldest DEI program in the federal government” and vowed to take a “sledgehammer” to it, citing concerns over waste, fraud, and deviation from merit-based principles.
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Established in 1978 under Section 8(a) of the Small Business Act, the program helps certified small businesses — typically those majority-owned by individuals deemed socially and economically disadvantaged (including certain racial or ethnic groups, tribes, or others meeting SBA criteria) — gain access to federal contracts.
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