A significant shift in federal hiring policy is advancing, as the House of Representatives has passed the Skills-Based Federal Contracting Act (H.R. 5235), a bill aimed at eliminating minimum education requirements for personnel on certain federal contracts. The legislation, introduced by Reps. Nancy Mace (R-S.C.) and Raja Krishnamoorthi (D-Ill.), now moves to the Senate for consideration.
The bill seeks to remove barriers for skilled individuals without traditional college degrees, allowing federal contractors the freedom to prioritize technical expertise over formal education requirements. Rep. William Timmons (R-S.C.), speaking in favor of the legislation, explained, "We should not prohibit those with the right technical skills from performing federal contract work just because they lack a traditional degree, and the companies who employ them, those that offer apprenticeships and engage in skills-based hiring, should be encouraged to compete for government contracts, not be excluded from competition."
Breaking the "Paper Ceiling"
Rep. Nancy Mace emphasized that this legislation addresses a broader issue beyond technology and service contracts, noting its implications across the federal workforce. According to Mace, unnecessary degree requirements create a "paper ceiling" that prevents many talented and qualified Americans from accessing lucrative federal contracting opportunities. She pointed out that such requirements ripple across the wider labor market, discouraging skills-based hiring.
"When we embed unnecessary degree requirements into federal contracting solicitations, we’re not just making a hiring decision; we’re sending a signal to the entire economy [that] a college diploma is a prerequisite for economic opportunity", said Mace. She highlighted the success of prominent individuals like Meta CEO Mark Zuckerberg, Oracle co-founder Larry Ellison, and Apple co-founder Steve Jobs, all of whom achieved remarkable success without completing college degrees.
Flexibility Still Permitted in Hiring Standards
While the legislation bans blanket educational requirements, it does leave room for exceptions. Contracting officers may include degree requirements in solicitations if they can provide a written justification explaining why such standards are essential to meeting the agency’s needs.
Additionally, the bill directs the Office of Management and Budget to issue updated guidance to agencies within 180 days of the law’s enactment, ensuring smooth implementation of the revised policy. The Government Accountability Office will also monitor the process, reporting back to Congress within three years on the implementation’s progress and effectiveness.
Broad Support for Skills-Based Hiring
The bill has garnered bipartisan support, with lawmakers emphasizing the importance of skills-based hiring in addressing workforce gaps. Rep. Suhas Subramanyam (D-Va.) noted that over 77% of Americans over the age of 25 do not hold a bachelor’s degree, yet many possess the knowledge and training needed to effectively serve federal agencies. "Too often, federal agencies put unnecessary degree requirements on contractor positions, and these unnecessary requirements hurt a lot of people", said Subramanyam, underscoring the need for reform.
Both Mace and Subramanyam clarified that the bill is not intended to discredit the value of a college education. Certain positions, such as those requiring medical or other specialized credentials, will still necessitate formal degrees. "For example", Mace explained, "we expect a doctor to have a medical degree, but only a small fraction of federal contract work falls into these types of categories."
Impact on Federal Technology Roles
The push for skills-based hiring has gained traction in technology-focused federal jobs, where a lack of degree flexibility is seen as a barrier to filling critical roles. During a January 2024 hearing, an IBM executive testified that federal contractors often face challenges placing highly skilled individuals without four-year degrees on technology services contracts. Mace has been vocal about addressing this issue, previously advocating for the rollback of degree requirements in federal cybersecurity positions.
"Four-year degree requirements are clearly hindering our ability to meet the demands that we have in the tech, cyber, and innovation AI space", Mace said in earlier remarks.
The Skills-Based Federal Contracting Act, if enacted, could mark a transformative step in opening federal contracting opportunities to a broader and more diverse pool of talent, signaling a nationwide shift toward valuing practical skills over formal educational credentials. The Senate’s decision on the bill will ultimately determine whether this policy becomes law.
