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What Trump’s “Big Beautiful Bill” Could Mean for Small Business Procurement and Bidding

  • Jul 21
  • 2 min read
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Expanded Tax Deductions for Pass-Through Entities

The bill proposes increasing the Qualified Business Income (QBI) deduction from 20% to 23% starting in 2026. This change would benefit many LLCs, S Corps, and sole proprietorships by reducing taxable income and potentially improving available cash flow for bidding, operations, and compliance investments.


Bonus Depreciation on Equipment and Software

The bill would extend 100% bonus depreciation for qualifying purchases—meaning businesses could fully deduct investments in procurement tools, inventory systems, or proposal software in the year they are purchased. For SMBs investing in automation, this could make a measurable difference in profitability.


 Procurement and Spending Reform

While details are still vague, the bill outlines a plan to reduce what it calls “waste, fraud, and abuse” in federal procurement. It hints at more streamlined acquisition processes, potentially changing how small businesses engage with public sector RFPs. That could lead to shifts in competition, contract structures, and evaluation criteria over time.


What This Means for SMBs

Not all impacts will be immediate, but here’s what small business owners and procurement professionals should prepare for:

  • Lower Tax Burden = More Pricing Flexibility

    Businesses may have the ability to bid more competitively without sacrificing profit margin.

  • Procurement Tools Could Pay for Themselves Faster\

    With expanded depreciation, investing in software or systems to manage bids, vendors, or compliance becomes easier to justify.

  • Policy Shifts May Change How Bids Are Evaluated

    If acquisition reform simplifies federal RFPs, small businesses may face reduced paperwork—but also need to be ready to stand out with clear value messaging and pricing logic.

  • Funding Cuts Could Affect Downstream Opportunities

    The bill includes reductions in SNAP and Medicaid spending, which may impact nonprofits and service vendors in the public sector procurement chain.


Public reaction is mixed, some praise the tax relief and simplification, while others express concern about the bill’s projected $2.4 to $3.8 trillion addition to the national deficit by 2034. That fiscal strain could influence interest rates and future public sector budgets.

Where Total Optim Solutions Fits In

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We help SMBs stay competitive and compliant through every phase of the procurement lifecycle. As legislation evolves, we keep your bids smart, your costs strategic, and your compliance airtight.

Here’s how we support you in this climate:

  • Tax-Informed Bid Modeling: We reflect the latest deduction and depreciation changes in your pricing strategy

  • Procurement Tech Guidance: We recommend tools that qualify for bonus depreciation and reduce manual workloads

  • Federal Readiness: We monitor procurement rule changes, so you don’t miss opportunities

  • Proposal Support: We provide templates, coaching, and pricing review to help your bid stand out, win or lose


Get Prepared Before the Rules Change

Whether the bill passes or not, the conversation is shifting. SMBs that understand how policy impacts pricing, compliance, and bidding will be better positioned to grow.

Visit www.totaloptim.com to discuss more.

 
 
 

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