This legislation aims to prevent federal agencies from contracting with companies that engage in boycotts of Israel. Specifically, after January 1, 2026, federal agencies are prohibited from entering into "covered contracts"—those exceeding $100,000—with companies unless they certify they are not engaged in such a boycott. Furthermore, all covered contracts must include a clause explicitly prohibiting the company from boycotting Israel during the term of the agreement. Agencies are required to provide written notice of this prohibition in all solicitations for bids. If a company is found to violate the boycott prohibition, the agency must notify the company and publicly announce the determination. The contract will then be terminated within 30 days of notification, unless the company ceases the boycott to the agency's satisfaction. The bill defines "engaging in a boycott of Israel" as actions intended to limit commercial relations with Israel or its businesses, particularly when taken in compliance with boycott calls, or in a discriminatory manner based on nationality, national origin, or religion, or without a valid business reason. It clarifies that its provisions should not be interpreted to infringe upon First Amendment rights or to take a position on the final status issues of the Palestinian-Israeli conflict.