The U.S. Court of Appeals for the Fourth Circuit has temporarily stayed a nationwide injunction, allowing the federal government to enforce provisions of Executive Orders 14173 and 14151, which restrict certain DEI activities, while the appeal proceeds. Businesses with federal contracts or grants should review their DEI policies to ensure compliance with federal anti-discrimination laws

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.

UPDATE:  As of January 29, 2025, the Trump Administration appears to have rescinded OMB Memo M-25-13 ordering a temporary pause on federal financial assistance activities and disbursements.

OMB Memorandum (M-25-13) advises federal agencies that they must temporarily pause all activities and disbursements of federal financial assistance that may be implicated by any of President Trump’s recent Executive Orders at 5:00 p.m. Eastern Time today, January 28, 2025.

President Trump recently issued an executive order revoking E.O. 11246, which had required federal contractors to implement affirmative action and non-discriminatory practices for over 60 years. The new order prohibits the Office of Federal Contract Compliance Programs (OFCCP) from enforcing diversity, equity, and inclusion (DEI) initiatives, effectively removing affirmative action requirements tied to federal contracts.

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).

The qui tam provisions of the False Claims Act allow individuals to file suit on behalf of the United States and to receive a share of the resulting financial settlement or judgment. Filing a qui tam case is not just a formal means of advising the Government of presenting a whistleblower complaint. Even when the Government chooses not to participate in a qui tam case, the False Claims Act itself gives the individual plaintiff authority to pursue it on their own.

The Infrastructure Investment and Jobs Act, Pub. L. No. 117-58, which includes the Build America, Buy America Act (“BABA”), was signed into law by President Biden on November 15, 2021.  BABA provisions apply to all Federal financial assistance awards (e.g., grants, cooperative agreements, non-cash contributions or donations, direct assistance and loans) that will be used to fund a portion or all of the construction, alteration, maintenance or repair of infrastructure in the United States. 

Since 2021, the Department of Justice (DOJ) has been increasingly focused on adjudicating False Claims Act (FCA) matters for deficient cybersecurity practices. As the government increases scrutiny of data privacy and cybersecurity, it is increasingly important to develop and maintain robust cybersecurity systems, educate employees, and ensure adequate risk management. Taking time now to shore up your data privacy and cybersecurity will help to avoid FCA challenges in the future.

Once again, the threat of a government shutdown looms over federal contractors and grantees. If Congress does not pass a continuing resolution or other funding legislation before midnight on Saturday, agencies will lack authorized appropriations to fund their operations. Although regrettable, the risk of a shutdown (or debt ceiling crisis) has been a fairly common occurrence over the last few years.