On Thursday, October 2, 2025, Ranking Member Nydia M Velázquez (D-NY) sent a letter to the U.S. Small Business Administration (SBA) Administrator, Kelly Loeffler, in response to reports that the SBA is using taxpayers’ dollars to promote partisan activities that could potentially violate the Hatch Act, and other federal laws. Rep. Velázquez demanded that the agency cease directing or encouraging employees to include political language in automated out of office replies, and halt any and all future political communications or guidance.
On Wednesday October 1, 2025, the SBA circulated an email to SBA colleagues, suggesting they use a partisan out of office reply for their Outlook email, blaming Senate Democrats for the government shutdown.
Additionally, SBA employees received an official agency wide email and a “Special Announcement” banner posted on the SBA’s public facing website containing language of political nature.
“The characterization that the shutdown is being forced by Congressional Democrats, when in fact two Republican Members of Congress and a Republican Senator voted against the measure, is a blatant disregard for the truth,” wrote Velázquez. “Republicans control the House, Senate, and the White House, and should be entirely focused on governing, and working to reopen the government, rather than engaging in misleading and inappropriate political activities. Congressional Democrats stand ready and willing to negotiate a bipartisan agreement to reopen the government and lower health care costs.”
Taxpayer dollars appropriated to the SBA are intended to support small businesses, not to be used for partisan political messaging. Using federal funds in this manner may violate the Hatch Act, the Purpose Statute, and the Anti-Deficiency Act.
“It is extremely troubling that you are engaging in unethical political activity while small businesses are facing economic uncertainty from the tariffs and the increased costs of goods,” wrote Velázquez. “It is essential that the SBA focus on its core mission and operate with the highest level of transparency and integrity. The ongoing lack of accountability under your leadership is disturbing. Numerous oversight letters have been sent to your office but have gone unanswered. This reflects a pattern of neglect, which in turn undermines public trust.”
Find the full letter here.
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