H.R. 2641, the E-Verify Act, mandates that federal contractors utilize the E-Verify system to confirm the employment eligibility of their workforce. The Congressional Budget Office (CBO) has provided a cost estimate for this legislation, dated March 26, 2026, indicating that its enactment would necessitate federal spending. The bill, as ordered reported by the House Committee on the Judiciary on January 8, 2026, aims to enhance compliance with immigration and employment laws for entities engaged in federal contracting.

Compliance officers at companies holding federal contracts must prepare for the implementation of this requirement. While the exact effective date for compliance is not specified in this CBO cost estimate, the bill's passage would likely trigger new obligations for employee verification. Companies should anticipate potential costs associated with E-Verify system implementation and ongoing usage, as well as the need to update their hiring and onboarding processes to align with the new mandate. Failure to comply could result in penalties or loss of federal contracts.