Washington, Dec 17 (NationPress) - Businesses owned by Indian Americans are leveraging a federal program that was originally aimed at aiding socially and economically disadvantaged small enterprises, according to testimonies heard by lawmakers.

During a hearing with the Senate Small Business and Entrepreneurship Committee, investigative journalist Luke Rosiak revealed that the 8(a) program, established in 1978 to assist Black Americans in overcoming historical injustices, has seen a notable transformation in its application over the years.

“By certain metrics, South Asians, particularly those from India, secure a significant portion of 8(a) contracts, while Black Americans receive merely 15 percent,” Rosiak expressed to the senators.

This hearing, dubbed “Running Government Like a Small Business,” aimed to evaluate if the Small Business Administration’s 8(a) program, which provides access to government contracts through set-asides, training, and mentorship, still aligns with its initial purpose.

Rosiak, hailing from Tennessee, emphasized that Indian Americans, referred to as “the wealthiest demographic in America,” have a strong presence among 8(a) contractors, particularly in the information technology sector, which dominates federal procurement. “Indians have never been underrepresented in IT; they’re overrepresented,” he stated.

He referenced OCT Consulting LLC, an IT firm participating in the 8(a) program, noting that its owner, Atul Kathuria, was awarded 19 federal contracts totaling $43 million without competitive bidding.

“Typically, awarding a contract to a firm without competition would be illegal,” Rosiak clarified, yet these awards were permissible because the company was recognized as an “Indian-American owned small business” under the 8(a) guidelines.

Rosiak raised concerns during the hearing about whether the designation of minority ownership is being exploited primarily for securing contracts rather than genuinely addressing social inequities.

“Minority ownership is merely a tool to win contracts, not to rectify societal disparities at a significant level,” he asserted.

He warned that the program is susceptible to exploitation, as contracts can be granted without open competition and later subcontracted to larger firms. According to Rosiak, this framework enables major corporations to avoid competitive bidding, while smaller certified entities serve as intermediaries, inflating costs and diminishing oversight.

The hearing highlighted stark divisions among lawmakers. Committee Chair Senator Joni Ernst stressed the need to eliminate “waste, fraud, and abuse” in federal programs while holding accountable those handling taxpayer funds.

In contrast, Democratic Ranking Member Senator Edward Markey defended the original purpose of the 8(a) program, maintaining that it was created to combat decades of exclusion from federal contracting.

He cautioned against dismantling initiatives focused on minorities based on selective instances, arguing they have broadened access for small and disadvantaged businesses.

Other witnesses, including representatives from the Government Accountability Office and the Project on Government Oversight, pointed out existing gaps in oversight and weaknesses in fraud prevention but refrained from advocating for the program’s elimination. They called for enhanced safeguards, improved data systems, and more consistent enforcement to mitigate abuse while maintaining the program’s core intent.

Rosiak informed the committee that recent court rulings have intensified the urgency surrounding this issue.

In light of Supreme Court decisions that restrict the use of race in federal programs, agencies have begun leaning towards subjective evaluations of “social disadvantage,” which he believes heightens the likelihood of misuse.

He noted that ongoing legal battles could compel the SBA to entirely revise the 8(a) regulations.

Indian Americans stand out as one of the most prosperous immigrant groups in the United States, with significant representation in technology, healthcare, and entrepreneurship, alongside consistently high median household incomes compared to other demographics.