House Small Business Committee Chairman Sam Graves (R-MO) today announced that the Committee will hold a hearing on the impact of sequestration on small business federal contractors. The hearing, titled, Sequestration: The Threat to Small Businesses, Jobs, and the Industrial Base, is scheduled to begin at 1:00 P.M. on September 20, 2012 in Room 2360 of the Rayburn House Office Building.
The purpose of the hearing is to review the probable effects of sequestration on small business contractors and the industrial base. Specifically, the Committee will receive testimony as to how small businesses will be affected by cuts to the federal workforce, prime contracts and subcontracts if those cuts are not properly targeted. The hearing will also examine how these losses will affect employment and the health of our industrial base. According to research conducted by the George Mason University Center for Regional Analysis, sequestration will result in over 2.14 million jobs lost, a decrease in personal earnings of $109.4 billion, and a reduction in GDP of $215 billion.
“The uncertainty of a looming sequestration is already having a negative effect on many small defense contractors,” said Chairman Graves. “Many small firms are not confident that contracting opportunities will still be available for them, which inhibits their ability to plan for the future, grow, and save taxpayers even more money. Our economy will lose nearly 2.14 million jobs if the sequester is implemented. This is not a smart attempt at budget savings. Instead, cuts should be more targeted and strategic. There are other ways to save money, including competitive contracting reform. Since there is still time before sequestration takes place, we should analyze its effects on small contractors and consider alternative solutions.”
Materials for the hearing are posted on the House Small Business Committee’s website HERE.
WHAT: Small Business Committee hearing titled, Sequestration: The Threat to Small Businesses, Jobs, and the Industrial Base.
WHEN: Thursday, September 20, 2012, 1:00 p.m. EDT
WHERE: 2360 Rayburn House Office Building