GSA Orders Comprehensive Audit of AbilityOne Program Over China-Made Products Falsely Labeled “Made in USA”

The General Services Administration has directed a comprehensive review of the AbilityOne Commission’s product offerings after discovering that technology manufactured in China was being marketed as American-made through federal procurement channels. GSA Administrator Edward Forst issued the directive in response to President Donald Trump’s March 2026 executive order mandating accurate “Made in America” labeling across government purchasing programs. The audit will scrutinize country-of-origin claims, pricing structures, supply chain sourcing and compliance with federal procurement law.

AbilityOne operates a federal purchasing initiative designed to create employment opportunities for individuals who are blind or have severe disabilities. Federal agencies are typically obligated to purchase products listed on the commission’s mandatory procurement list from participating nonprofit organizations. GSA’s findings raise questions about whether the program adequately protects national security and fulfills its core mission of supporting American jobs for disabled workers.

The agency documented multiple instances where technology products displayed on GSA procurement platforms carried “Country of Origin: USA” designations despite originating from foreign nations, particularly China. GSA demanded that AbilityOne verify the country of origin for every product on its mandatory list and submit corrected information by November 16. The letter also requested documentation detailing how the commission plans to implement ongoing country-of-origin verification procedures.

Beyond origin-labeling concerns, GSA raised questions about the program’s pricing and executive compensation practices. Participating nonprofits can apply markups of up to 55 percent on products sold to the government, according to GSA findings. The agency noted that some nonprofit executives received annual compensation exceeding $1 million while blind workers in the program earned average salaries of approximately $33,000 annually.

GSA cited prior False Claims Act settlements involving AbilityOne-affiliated organizations as evidence of compliance problems. Industries for the Blind and Visually Impaired, a Wisconsin nonprofit, paid $1.9 million in 2020 to resolve allegations of false claims and kickbacks on government contracts. Connecticut-based CW Resources settled a 2021 case for $600,000 over allegations it falsely certified compliance with AbilityOne labor requirements.

The audit has also attracted attention from Vice President JD Vance’s anti-fraud task force, which is examining government waste and abuse across federal programs. The National Council on Disability, an independent federal advisory body, characterized AbilityOne as a “policy relic” that has failed to adapt to the needs of disabled Americans and called for heightened scrutiny under the Trump administration’s fraud review initiatives.

GSA is also investigating an AbilityOne policy permitting product substitutions through a mechanism known as “Essentially the Same,” which allows certain foreign-manufactured goods to replace American products already approved for the mandatory list. According to GSA’s draft letter, this substitution process has enabled Chinese manufacturers to quietly displace domestic competitors while continuing to access preferential federal purchasing advantages.