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HB 1177

Small Business Reserve Program - Veteran-Owned Small Business Enterprises - Outreach

2026 Regular Session Introduced by Aaron Kaufman and 4 co-sponsors

Maryland HB 1177 creates state procurement set-asides and outreach for veteran-owned small businesses to increase their access to government contracts and economic opportunities.

Hearing 3/10 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 1177

Legislative bill overview

HB 1177 establishes a Small Business Reserve Program in Maryland specifically designed to support veteran-owned small business enterprises (VOSBEs) through dedicated procurement opportunities and outreach initiatives. The bill creates reserved contracts and purchasing preferences for eligible veteran-owned businesses in state procurement processes.

Why is this important

Veterans often face barriers to business ownership and accessing government contracts despite their entrepreneurial experience and service. This program directly addresses economic opportunity gaps by ensuring veteran entrepreneurs have dedicated pathways to secure state contracts, which can stabilize cash flow and help these businesses scale. The outreach component helps ensure veterans actually know about and can access these opportunities.

Potential points of contention

  • Definition and verification complexity – Determining what qualifies as a "veteran-owned" business and establishing verification mechanisms may create administrative costs and potential disputes over eligibility
  • Impact on competitive bidding – Reserved contracts reduce competition from non-veteran-owned businesses, raising questions about whether this represents efficient government spending or necessary equity-based priority
  • Program funding and enforcement – The bill's effectiveness depends on sustained outreach resources and state agency commitment; unclear how oversight prevents abuse or ensures goals are met

Compiled from official sources — confirm details with the bill’s official record.

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