Luke Rosiak testifies before U.S. Senate on alleged abuses in federal 8(a) contracting program.
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Luke Rosiak to testify before Senate on alleged abuses in federal 8(a) contracting program

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Daily Wire investigative reporter Luke Rosiak is scheduled to testify before a U.S. Senate committee this week about alleged waste, fraud, and abuse in the federal 8(a) contracting program, a long-running initiative that reserves certain government contracts for firms owned by members of disadvantaged groups.

The Senate Small Business and Entrepreneurship Committee is set to hold a hearing titled "Running Government Like a Small Business: Cut Waste, Crush Fraud," at 2:30 p.m. on Wednesday, December 10, according to the Daily Wire. At the hearing, investigative journalist Luke Rosiak is expected to focus his testimony on the federal 8(a) program, which sets aside government contracts for firms run by members of specified disadvantaged classes, largely racial and ethnic minorities, and affects contracts at nearly all federal agencies.

The Daily Wire reports that Rosiak, who won the 2025 Dao Prize in November for his reporting on what he describes as extraordinary government waste, has documented numerous alleged abuses involving the 8(a) program. The Department of Justice has found that the program was exploited in connection with a bribery scheme totaling roughly $550 million over several decades, in part through what investigators describe as "pass-through" fraud.

In that type of scheme, minority‑owned businesses obtain federal contracts through a no‑bid process, retain a portion of the contract funds, and then subcontract other companies to perform the actual work, according to the Daily Wire’s account of the investigation.

Treasury Secretary Scott Bessent and Small Business Administration Administrator Kelly Loeffler are examining the alleged misuse of the program, which independent journalist James O’Keefe has characterized on social media as a potential $100 billion scandal, the Daily Wire reports.

Committee Chair Senator Joni Ernst (R‑Iowa), who leads the Senate Small Business and Entrepreneurship Committee, has introduced the Stop 8(a) Contracting Fraud Act. According to Ernst’s office, the bill is intended to halt new no‑bid federal contracts under the 8(a) program until a comprehensive audit is completed. The Daily Wire article notes that the program was significantly expanded under President Joe Biden as part of broader diversity, equity, and inclusion policies.

Rosiak will be joined by two additional witnesses who will address other areas of alleged government waste: John Hart, CEO of Open the Books, who plans to discuss the use of COVID‑19 relief funds and USAID grants, and Courtney LaFountain, the acting director of the Government Accountability Office, according to the Daily Wire.

"If a small business treated their finances like the government treats tax dollars, they would go out of business," Ernst said in a statement released ahead of the hearing. "This has always been an issue in Washington, but under Joe Biden it became an all‑you‑can‑eat buffet of waste, fraud, and abuse with criminals and con artists cashing in while hardworking Americans were left out in the cold."

Ernst added that she looks forward to hearing from the witnesses on how Congress might work to reduce bureaucracy, improve government efficiency, and better serve small businesses.

Watu wanasema nini

Discussions on X focus on shares of the Daily Wire article announcing Luke Rosiak's Senate testimony on waste, fraud, and abuse in the 8(a) contracting program. Users express strong support for exposing the program as a DEI scheme, advocate abolishing race-based preferences for merit-based awards, and reference related SBA audits and investigations. Sentiments are uniformly critical with no defenses found.

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SBA auditors reviewing financial records from 8(a) program contractors in an effort to detect fraud and ensure compliance.
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SBA orders financial records review for 8(a) program contractors

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The Small Business Administration has directed roughly 4,300 companies in its 8(a) Business Development Program to submit detailed financial records by January 5 in an effort to verify compliance and detect fraud, according to a letter obtained by The Daily Wire. The move targets potential abuse in the decades-old initiative, which gives contracting preferences to businesses deemed socially and economically disadvantaged, and follows mounting evidence of alleged pass‑through schemes.

Luke Rosiak, an investigative reporter for The Daily Wire, is testifying before the U.S. Senate on government waste, with the outlet providing live updates on its website.

Imeripotiwa na AI Imethibitishwa ukweli

The Small Business Administration has suspended ATI Government Solutions and several executives amid a widening inquiry into alleged abuse of the 8(a) program for socially and economically disadvantaged small businesses. The Treasury Department separately ordered a department‑wide audit of preference‑based contracting, while Sen. Joni Ernst called for additional oversight following undercover videos that prompted swift action, according to agency notices and industry reports.

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