Government Contractor Compliance & Regulatory Update

Quick Hit: Florida has enacted a sweeping new law (CS/CS/SB 1134) that prohibits counties and municipalities from funding, promoting, or taking any official action relating to diversity, equity, and inclusion (“DEI”), including indirectly through contractors, vendors, and grant recipients. The law takes effect January 1, 2027.

Key Takeaways: Beginning January 1, 2027, before

Quick Hit:  On April 24, 2026, the Department of Justice intervened in a lawsuit filed by xAI, a company owned by Elon Musk, challenging the Colorado Artificial Intelligence Act (the “AI Act”).  If successful, the effort could prevent or delay the implementation of the AI Act, which is set to take effect on June 30, 2026.

Key Takeaway:  

Quick Hit: A complaint has been filed in the U.S. District Court for the District of Maryland, contending that President Trump’s recent Executive Order (the “Order”) barring contractors from engaging in “racially discriminatory DEI activities” violates First Amendment free speech and freedom of association rights of federal contractors, and exceeds the President’s authority under the

Quick Hit: On April 17, 2026, the Federal Acquisition Regulatory Council (the “FAR Council”) submitted a justification pursuant to the Paperwork Reduction Act (“PRA”), seeking emergency clearance from the Office of Management and Budget (“OMB”) to permit collection of information to comply with Executive Order 14398 (the “Order”), “which prohibits contractors from engaging in any

Quick Hit: On April 17, 2026, the Federal Acquisition Regulatory Council (the “FAR Council”) commenced implementation of Executive Order 14398 (“the Order”).  In its memorandum issued to government acquisition and procurement officials, the FAR Council provides guidance regarding the implementation of the Order, which it describes as establishing “that agencies should not do business with

Quick Hit: On April 10, 2026, the Department of Justice (“DOJ”) announced the first False Claims Act (“FCA”) resolution secured under its Civil Rights Fraud Initiative. The settlement resolves allegations that International Business Machines Corporation (“IBM”) violated the FCA “by failing to comply with anti-discrimination requirements in its federal contracts due to practices the

Quick Hit:  A proposed change to the certification required for registration with the System for Award Management (“SAM”), if adopted, will expand the certifications required for entities applying for or receiving grants, cooperative agreements, or financial assistance such as loans, insurance, and direct appropriations from the federal government.  The proposed new certifications include certification of

Quick Hit: On March 26, 2026, President Trump signed an Executive Order titled “Addressing DEI Discrimination by Federal Contractors” (the “Order”) which mandates the inclusion of a new clause (the “Clause”) in all covered federal contracts and contract-like instruments prohibiting federal contractors from engaging in “racially discriminatory DEI activities.” The Order directs agencies

OFCCP is undergoing yet another significant organizational shift, as the agency’s director recently announced a restructuring plan for its remaining workforce. This development signals the latest chapter in the OFCCP’s transformation under the Trump Administration.

According to reports, OFCCP Director Ashley Romanias recently informed staff of a reorganization plan that will restructure the agency’s

The U.S. Department of Labor (“DOL”) recently launched its new Open Data Portal, which “helps bring the department into alignment with the OPEN Government Data Act of 2019 and the Federal Data Strategy established during President Trump’s first administration.”

Of note for federal contractors, the portal includes data from VETS-4212 Reports previously filed with