Why It Matters

The House passed the Value Over Cost Act (H.R. 1118) Tuesday, July 21, sending a clear signal that both parties are ready to overhaul how the federal government buys goods and services. The overwhelming vote—with 210 Democrats, 210 Republicans, and 1 Independent backing the bill—underscores a rare moment of agreement on government efficiency in the 119th Congress. Only 1 Republican opposed the measure.

The legislation represents a significant shift in federal procurement policy. Currently, federal agencies must prioritize the lowest overall cost when purchasing through the General Services Administration's multiple award schedule program. The Value Over Cost Act changes that calculus, allowing the GSA to pursue "best value" options instead of lowest cost when it determines this better serves the government's interests.

The Big Picture

Federal agencies spend billions annually through GSA contracts, and the difference between lowest-cost and best-value procurement could reshape how taxpayer money flows through the government. Proponents argue that prioritizing "best value" over rock-bottom pricing allows agencies to account for quality and performance, meaning better products, more durable solutions, and fewer costly do-overs down the line.

The bill also reflects the Trump Administration's broader push to reshape federal contracting. In April 2026, the administration issued Executive Order 14402 on Federal Contracting, stating that fixed-price contracts with performance-based considerations should serve as the default and preferred method of procurement. The Value Over Cost Act fits neatly into this agenda, though notably, no formal Statement of Administration Policy from the White House addressing H.R. 1118 has been publicly published.

The H.R. 1118 floor vote came via House roll call vote 252, conducted under a motion to suspend the rules and pass the bill as amended. This procedural move required a two-thirds majority, but the bill cleared that bar with ease.

The legislation was first introduced Feb. 7, 2025, by Rep. Byron Donalds (R-FL-19), along with Rep. Jared Moskowitz (D-FL-23) as a cosponsor.

The Bottom Line

The Value Over Cost Act signals Congress's willingness to revisit longstanding procurement rules.

The bill is also related to a Senate companion measure, S.2118, which may advance in the upper chamber with similar momentum. The overwhelming support for the Value Over Cost Act in the House suggests the Senate may follow suit, potentially making this one of the few significant pieces of legislation to pass both chambers with bipartisan consensus in the 119th Congress.

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