Compliance

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On August 21, 2026, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) published a final rule in the Federal Register that eliminates the requirement for federal contractors to invite applicants and employees to self-identify as individuals with disabilities, retires the related Form CC-305, and rescinds the 7 percent disability utilization goal and its associated data collection and analysis requirements. Why? OFCCP says the old self-identification framework conflicts with the Americans with Disabilities Act (ADA).

The new rule takes effect September 21, 2026. Additionally, an amendment removing 41 CFR Part 60-30 (the former Executive Order 11246 administrative-proceeding regulations, now folded directly into the Section 503 regulations) takes effect 120 days after publication.

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Government contractors, if they have not seen it already, are likely to begin seeing FAR 52.222-90, Addressing DEI Discrimination by Federal Contractors, in solicitations, contracts, and subcontract flowdowns.

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On March 26, 2026, the White House issued an Executive Order (2026 DEI Executive Order) imposing new obligations on federal contractors to provide evidence of the elimination of racially discriminatory Diversity, Equity, and Inclusion (DEI) activities.

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The Department of Justice (“DOJ”) recently released its 2025 statistics for federal False Claims Act cases. With settlements and judgments exceeding $6.8 billion last year, DOJ’s report shows that the False Claims Act (“FCA”) remains one of DOJ’s most potent and frequently-used investigation tools. The annual report also suggests that, after a year of change and turnover that touched virtually every corner and level of DOJ, the coming year will likely see a historically high volume of FCA cases. Contractors and grant recipients, therefore, should pay careful attention to every claim for payment or compliance certification submitted to any federal authority.

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On May 19, 2025, the Department of Justice (“DOJ”) announced its Civil Rights Fraud Initiative (the “CRFI”). As discussed in our post related to that announcement, the CRFI mobilizes federal, state, and local law enforcement to investigate whether recipients of federal funds have DEI programs that violate federal civil rights laws. Multiple federal and state agencies are reportedly conducting investigations into DEI programs within corporations and institutions of higher education.

Recently, my colleague Tracey O’Brien and I examined the implications of the federal government’s intention to shut down the Office of Federal Contract Compliance Programs (OFCCP). OFCCP has already proposed to prohibit data collection by federal contractors of disability status from employees and applicants. In a Notice of Proposed Renewal of Information Collections released by…

In a recent legal update, Husch Blackwell explores new guidance from the Department of Justice on how federal antidiscrimination laws—including Title VI and Title VII of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972—will be interpreted to apply to recipients of federal funding, in conjunction with Executive Order 14173 (“Ending Illegal Discrimination and Restoring Merit-Based Opportunity”). While the guidance lacks the force of law, it captures the administration’s enforcement posture on what it considers to constitute “illegal DEI.”

The FAR Council issued a proposed rule that would amend the several FAR provisions and add new clauses to provide guidance on the safe handling of CUI. Public comments on the proposed rule are being accepted until March 17, 2025. The FAR Council intends to provide guidance to contractors on the requirements to mark, safeguard, disseminate, decontrol, and dispose of CUI (“CUI safeguarding”) for every executive branch agency.

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On January 14, 2025, the Federal Highway Administration (FHWA) announced the end of its general waiver of Buy America requirements for manufactured products. The new FHWA rule aligns the FHWA requirements for manufactured products incorporated into federal highway projects with the domestic content standards of the Build America, Buy America Act (BABA).

Cybersecurity-related FCA cases poised to increase as FCA enforcement ramps up

On February 7, 2023, the Department of Justice (DOJ) announced that settlements and judgments under the False Claims Act exceeded $2.2 billion during the 2022 fiscal year and that the government posted its second-highest number of settlements and judgments in a single year.