The Weekly Update recaps recent legislative and regulatory updates affecting
government contractors and commercial businesses.
If you have questions concerning this content, please email marketing@pilieromazza.com.
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Partial Shutdown Ends Less Than 4 Days After It Began, Government Executive
Nearly every federal agency is now funded through September and employees will be paid for the days they were furloughed. Federal agencies are set to reopen after the House on Tuesday approved a spending package funding those forced to close their doors over the weekend, ending the shutdown less than four days after it began. Read more here.
PilieroMazza Annual Review: 2025 GovCon Year in Review, PilieroMazza Webinar Replay, Jon Williams, Lauren Brier, Meghan F. Leemon, Eric Valle
From DOGE to the FAR re-write and a lot in between, 2025 was an unprecedented year of upheaval and unique challenges in government contracting. While many contractors may be eager to turn the page to 2026, looking back on key legal developments in 2025 will help you prepare for success in the new year ahead. Click here to view the recorded session.
BGOV Bill Summary: H.R. 7148, Combined Fiscal 2026 Spending Bill, Bloomberg Government
Federal departments and programs in six fiscal 2026 appropriations bills would be funded for the rest of the year under the version of H.R. 7148 awaiting Senate action. The package covers the Defense, Financial Services-General Government, Homeland Security, Labor-HHS-Education, National Security-State, and Transportation-HUD spending bills. The House had passed the bills under three separate measures and then combined them into a single package last week to try to expedite passage in the Senate ahead of the Jan. 30 deadline to fund the government. Read more here (subscription required).
Navy Shipbuilding Stands to Get $27 Billion in Funding in 2026, Defense One
House and Senate appropriators backed the White House’s shipbuilding goals with an additional $6.5 billion in funding for fiscal year 2026—including adjustments to fix accounting errors resulting from last year’s budget reconciliation. Read more here.
California Bills Seek to Hit ICE Contractors With Tax Hikes, Bloomberg Government
California lawmakers are introducing tax legislation aimed at pressuring companies in the state to stop contracting with the US Department of Homeland Security. One bill announced Wednesday would prohibit DHS contractors—ranging from private-prison operators to software companies—from claiming a slew of tax benefits, while another would impose a 50% tax on companies that operate detention facilities for Immigration and Customs Enforcement and other federal agencies. Read more here (subscription required).
Rep. Latimer Introduces Bill to Strengthen Small Business Innovation and Commercialization
U.S. Congressman George Latimer (D-NY) introduced the SBIR Administrative Funding Act, legislation to facilitate long-term agency planning and coordination for the Small Business Innovation Research (SBIR) Program. The SBIR and Small Business Technology Transfer (STTR) programs, otherwise known as America’s Seed Fund, require certain federal agencies to allocate a portion of their research and development funding to support small business innovation and commercialization. Small businesses in New York that have received SBIR and STTR grants are innovating in sectors from aviation and health care to manufacturing and agriculture. Read more here. The full bill is available here.
Department of War (DOW) 2026 National Defense Strategy
On January 23, the DOW released its 2026 National Defense Strategy. The full text is available here.
Government by AI? Trump Administration Plans to Write Regulations Using Artificial Intelligence, Government Executive
The Trump administration is planning to use artificial intelligence to write federal transportation regulations, according to U.S. Department of Transportation records and interviews with six agency staffers. DOT plans to use Google Gemini to draft new regulations. “We don’t need the perfect rule,” said DOT’s top lawyer. “We want good enough.” Read more here.
Department of War (DOW) Memoranda Implementing the Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO)
In January 2026, DOW issued four class deviations implementing the RFO Parts 19, 27, 41, 43, 46, and 52, and applying the same to the Defense FAR Supplement (DFARS) Parts 219, 227, 241, 243, and 246. DOW has also issued a revision to its class deviation for FAR Part 6 and DFARS Part 206. DOW has now implemented RFO Parts 1, 3, 5-7, 10-14, 1-19, 23, 24, 26-37, 39-41, 43, 44, and 48-50. DOW class deviations for the RFO can be found here.
Upcoming Presentations
PM WEBINAR: DCAA’s Annual Update, February 24, 2026, Isaias “Cy” Alba, IV
CONFERENCE: Build Your Dream Advisory Team, February 25, 2026, Isaias “Cy” Alba, IV
CONFERENCE: Managing the Financial Impact of Tariffs on Your Government Contracts, March 4, 2026, Jacqueline K. Unger, Ryan Boonstra
SEMINAR: Government Contractors and Tariff Challenges: Strategies for Success, March 11, 2026, Jacqueline K. Unger
CONFERENCE: Federal Small Business Update — Threats and Opportunities in the Current Environment, March 12, 2026, Lauren Brier
Upcoming Presentations
PM WEBINAR: CMMC Mission Readiness: Navigating Growth, Costs, and Competition for Defense Contractors, March 11, 2026, Isaias “Cy” Alba, IV
Beware the “Hallmarks” of AI: Recent GAO Decision Provides Cautionary Tale for Protesters, PilieroMazza Blog, Katherine B. Burrows, Josie Farinelli
For better or worse, artificial intelligence (AI) is transforming the legal industry. The Government Accountability Office’s (GAO) recently decided Bramstedt Surgical Inc., dedicating three pages to warnings about penalties it could have imposed on the protester and protester’s counsel for incorrect citations. For those tracking GAO’s recent handling of protesters and lawyers who file documents that appear to be riddled with AI-hallucinated citations or legal arguments citing to cases that do not stand for the premise alluded to, the decision comes as no surprise. Nevertheless, the Bramstedt decision serves as a stark reminder that while AI can be a useful tool, it can also create serious professional and legal exposure when used without proper oversight. In this blog, we will explain why GAO’s decision should be a wake-up call for government contractors relying on AI for their protests, identify key risks protesters need to understand before using AI, and provide actionable advice for protesters to ensure their lawyers are using AI responsibly. Read more here.
You’re Hired! Restrictions on Hiring Former Government Employees for Government Contractors, PilieroMazza Webinar Replay, Sara Ryan, Abigail “Abby” Finan
Join PilieroMazza’s Sara Ryan and Abby Finan as they breakdown the rules, responsibilities, and practical steps contractors should take to avoid costly violations. Whether you are a contractor hiring former federal personnel or a former government employee navigating post-government employment, this session will help you understand the boundaries and mitigate risk. Click here to view the recorded session.
Department of Labor (DOL) News Release: DOL Announces Compliance Assistance Tools to Help Employers Understand Federal Labor Laws, Avoid Violations
On January 27, DOL announced the launch of several compliance assistance resources designed to promote greater compliance with federal labor laws. The new tools include a compliance assistance webpage, a video series on the Family and Medical Leave Act, and revamped compliance assistance toolkits for various industries. Read more here.
ICYMI: Multijurisdictional Employers, Parts 1-4: PilieroMazza Webinar Series
This webinar series offers guidance to help multijurisdictional employers scale efficiently, reduce legal exposure, and stay competitive in an evolving regulatory landscape. Visit this link to access replays of the webinar series.
Upcoming Presentations
PM WEBINAR: PilieroMazza Annual Review: Workforce Updates for Multijurisdictional Employers—What to Watch in 2026, February 11, 2026, Nichole D. Atallah, Sarah L. Nash
TRAINING: Labor Rules & Regulations: Federal Market Compliance, March 18, 2026, Sarah L. Nash
CONFERENCE: Ins and Outs of the Service Contract Act, March 23, 2026, Nichole D. Atallah
CONFERENCE: DMV Legal Compliance Toolkit: Practical Insights for Multi-Jurisdictional Employers, March 24, 2026, Sarah L. Nash
CONFERENCE: You’re Fired! Legal Risks of Personnel Management for Tribally Owned Entities, March 25, 2026, Nichole D. Atallah
Upcoming Presentations
TRAINING: M&A Case Study, February 11, 2026, Isaias “Cy” Alba, IV, Abigail “Abby” L. Baker
CONFERENCE: Plan Your Exit Strategy and Adjust Along the Way, February 25, 2026, Isaias “Cy” Alba, IV
WEBINAR: Buying or Selling: Navigating the New Landscape of 8(a) M&A Transactions, February 26, 2026, Isaias “Cy” Alba, IV
INTELLECTUAL PROPERTY & TECHNOLOGY RIGHTS
DOD Releases Intellectual Property Guidebook: Key Insights for Defense Contractors, Part 3, Isaias “Cy” Alba, IV, Jacqueline K. Unger, Daniel Figuenick, III, Abigail “Abby” Finan
When doing business with the Department of Defense (DOD), contractors must ensure that protecting their intellectual property (IP) and understanding DOD’s data rights regime under the Defense Federal Acquisition Regulation Supplement (DFARS) is top of mind. DOD released its Intellectual Property Guidebook (Guidebook) in May 2025. This blog, the third in the series, takes a closer look at the doctrine of segregability, modular licensing, special categories of data, and the general rules surrounding the government’s data rights in each. Read more here.
BUSINESS & TRANSACTIONS / LITIGATION & DISPUTE RESOLUTION
ICYMI: Managing Litigation Risk During the Business Lifecycle, Parts 1-8: PilieroMazza Blog Series
Starting and operating a business—whether a small business, startup, or government contractor—involves risks that can lead to costly litigation. In this 8-part blog series, attorneys from PilieroMazza’s Business & Transactions and Litigation & Dispute Resolution practice groups cover litigation risks that evolve over the lifecycle of a company, including entity formation, M&A transactions, fiduciary duties, and much more. Visit this link to access the series.
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