The First 100 Days: How Trump’s Return Is Reshaping Government Contracting for Small Businesses

The first 100 days of any presidency set the tone for the administration’s priorities. In his second term, President Donald Trump has wasted no time implementing sweeping changes that directly impact government contractors. From regulatory overhauls to shifts in procurement policies, these early actions present both challenges and opportunities—especially for small and medium-sized businesses (SMBs) looking to navigate the federal marketplace.

A Bold Agenda: Executive Orders and Deregulation

President Trump has signed over 140 executive orders in his first 100 days, many aimed at reducing federal oversight and promoting efficiency. Key among these is the “Restoring Common Sense to Federal Procurement” executive order, which seeks to streamline the Federal Acquisition Regulation (FAR) by eliminating non-statutory provisions. This move is intended to create a more agile and efficient procurement system, potentially benefiting SMBs by reducing bureaucratic hurdles.

Additionally, the administration has tasked federal agencies with identifying and eliminating regulations deemed anticompetitive, further signaling a commitment to deregulation.

The Department of Government Efficiency: A Double-Edged Sword

A significant development is the establishment of the Department of Government Efficiency (DOGE), led by Elon Musk. This new department aims to cut costs by reviewing and terminating unnecessary contracts, grants, and loans. While this could lead to reduced opportunities for some contractors, it also opens the door for SMBs to offer more cost-effective solutions and fill gaps left by larger, less agile competitors.

However, critics argue that DOGE’s aggressive cost-cutting measures have led to service disruptions and decreased morale within federal agencies. Reports indicate that the rapid implementation of these cuts has resulted in confusion and uncertainty among contractors.

Shifts in Small Business Administration Goals

The Small Business Administration (SBA) has announced a reorganization to restore efficiency and focus on promoting small businesses. While core services like loan guarantees and disaster assistance remain unaffected, the SBA has revised its small business contracting goals for fiscal year 2025, decreasing some targets and standardizing them across federal agencies.

This standardization may level the playing field, allowing SMBs to compete more effectively without the pressure of meeting varying agency-specific goals.

Defense Spending and Innovation

Defense contracting is poised for growth under the Trump administration. An executive order titled “Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base” mandates the Department of Defense to streamline acquisition processes and encourage innovation. This initiative could create new opportunities for SMBs specializing in defense technologies and services.

Major defense contractors like Lockheed Martin, Boeing, and Northrop Grumman have already seen increased demand, signaling a robust defense sector that could benefit SMBs through subcontracting opportunities.

The Controversy Over DEI Policies

One of the most contentious moves has been the revocation of Executive Order 11246, which prohibited discrimination by federal contractors. The new Executive Order 14173 eliminates requirements for diversity, equity, and inclusion (DEI) programs in federal contracting, shifting the focus to merit-based hiring.

While proponents argue this reduces bureaucratic burdens, critics contend it undermines decades of civil rights progress. For SMBs, especially those owned by minorities or women, this change could impact access to certain contracting opportunities previously supported by DEI initiatives.

Pros for Small and Medium-Sized Businesses

• Reduced Regulatory Burden: Streamlining the FAR and eliminating certain DEI requirements may simplify the contracting process.
• Increased Opportunities in Defense: Emphasis on defense spending and innovation opens new avenues for SMBs in the defense sector.
• Standardized SBA Goals: Uniform contracting goals across agencies can make it easier for SMBs to strategize and compete.

Cons and Considerations

• Potential Loss of DEI Support: The removal of DEI requirements may disadvantage businesses that previously benefited from such programs.
• Contract Terminations: The DOGE’s mandate to eliminate unnecessary contracts could result in the loss of existing opportunities.
• Uncertainty in Implementation: Rapid policy changes may lead to confusion and require SMBs to stay vigilant and adaptable.

Navigating the New Landscape

The early days of Trump’s second term have brought significant changes to government contracting. For SMBs, the key to success lies in staying informed and agile. Understanding the evolving policies and adjusting strategies accordingly will be crucial.

At FedBiz Access, we’ve been assisting businesses of all sizes in the government marketplace for over 24 years. Our expertise can help you navigate these changes and identify new opportunities.

Schedule a complimentary consultation with a FedBiz Specialist today to ensure your business is well-positioned in this shifting landscape.