SBA Revokes USAID 8(a) Contracting Authority After $550M Bribery Scandal

The U.S. Small Business Administration (SBA) has revoked the independent 8(a) contracting authority of the U.S. Agency for International Development (USAID) following a major bribery scandal involving $550 million in federal contracts. The Department of Justice investigation revealed that a USAID contracting officer accepted bribes from business owners in exchange for priority access to lucrative contracts in the SBA’s 8(a) program, which supports small and disadvantaged businesses. SBA Administrator Kelly Loeffler condemned the corruption, highlighting the agency's commitment to recovering misused funds and ordering a comprehensive audit of all 8(a) contracts over the past 15 years. The move is part of the broader Trump administration effort to dismantle USAID, which has already seen significant downsizing and integration with the State Department. Although USAID allocated approximately $3.6 billion through the 8(a) program last fiscal year, experts note the agency's diminished capacity following employee layoffs, suggesting the revocation's practical impact may be limited but serves as a strong warning against fraud. The SBA emphasized its dedication to ensuring integrity in federal contracting and protecting taxpayer dollars from fraudulent activities.