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June 06, 2025

What bullshit!

House passes legislation requiring SBA offices to leave ‘sanctuary cities’

Democrats argued that the bill “is all about punishing cities for their politics” and would cause disruptions for small businesses.

Katherine Hapgood

The House passed a bill Thursday that would remove Small Business Administration offices from “sanctuary cities” that limit cooperation with federal immigration authorities, like New York, Boston, Denver and Chicago.

The legislation passed 211-199.

The bill, H.R. 2931, would codify administrative action that SBA Administrator Kelly Loeffler debuted in March that congressional Republicans were aligned with. As part of that action, Loeffler said she would move regional SBA offices out of six “sanctuary cities” — Atlanta, Boston, Chicago, Denver, New York City, and Seattle — “to less costly, more accessible locations that better serve the small business community and comply with federal immigration law.”

The House legislation would require Loeffler to relocate SBA offices from any “sanctuary jurisdiction.” The bill leaves any additional sanctuary city relocations up to Loeffler.

House Small Business Chair Roger Williams (R-Texas) said the six regional offices Loeffler has already identified for relocation will be moved to “safer communities” in those same states.

“It is important to note that SBA services to small businesses nationwide will not be interrupted by passing this legislation,” Williams said on the House floor.

Democrats, however, disputed that the bill would cause disruptions for small businesses.

“This bill does nothing to help small businesses and is all about punishing cities for their politics. It targets our nation’s major economic hubs where small businesses rely on in-person SBA support. Uprooting those offices is disruptive, expensive, and purely political,” said House Small Business Ranking Member Nydia Velázquez (D-N.Y.).

The House also passed by a vote of 214-198, H. R. 2987, the CEASE Act, a bill capping the number of for-profit small business lending companies that can make loans under SBA’s primary lending program.

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