On January 24, the SBA announced updated small business contracting goals for fiscal year 2025, significantly decreasing some goals and standardizing targets across federal agencies. These changes bring the small business targets closer to historic targets. While new administrations frequently tweak small business subcontracting goals, these changes follow the Trump Administration’s approach to programs that seek to advance diversity, equity, and inclusion (DEI).
Note that the small business goal matrix attached to the article continues to list USAID goals as of March 15, 2024. It is likely that their goals will continue to be tracked through FY 25, by which point the agency will cease to exist as an independent agency. Note that the State Department goals are of a different magnitude given the significantly larger mission support type procurements they undertake.
| Agency | Prime Small | Prime Small, Disadvantaged | Small business subcontracts | |||
| FY24 | FY25 | FY24 | FY25 | FY24 | FY25 | |
| USAID | 13.75% | 14.5% | 8.5% | 5% | 16% | 30.66% |
| State | 26% | 34.5% | 21% | 5% | 38% | 50.83% |
