Hawley Bill Cracking Down on McKinsey, Management Consultants’ CCP Ties Passes Committee

Wednesday, May 15, 2024

Today a bill introduced by U.S. Senator Josh Hawley (R-Mo.), the Time to Choose Act, passed the U.S. Senate Committee on Homeland Security and Governmental Affairs (HSGAC).

The bill, which Senator Hawley first put forth in 2022, and reintroduced earlier this year, prohibits the Department of Defense (DOD) and other federal agencies from contracting with consulting firms like McKinsey & Company who are also doing business with the Chinese government or its affiliates.

“American companies should be dedicated to advancing American interests, but firms like McKinsey are compromised—and our government is rewarding them,”said Senator Hawley. “My bill would require government contractors to choose between standing with the U.S. in its efforts to protect Americans against China’s imperial ambitions or standing with the CCP, and I’m glad the committee has advanced it.”

The Time to Choose Act would: 

  • Prohibit federal agencies from contracting with consulting firms that hold a contract with certain foreign entities, including the Chinese government and Chinese Communist Party.
  • Impose penalties on consulting firms that intentionally hide or misrepresent contracts with certain Chinese and other foreign entities, including:

    • Terminating affected federal contracts.
    • Debarring relevant firms from future work with the federal government.
    • Requiring relevant firms to pay damages equivalent to three times the amount spent by the U.S. government, pursuant to the False Claims Act.