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.
_____________________________________________
Ending Discrimination in Government Contracting Act Proposes to Eliminate Preferences for 8(a) and WOSB Firms, PilieroMazza Blog, Antonio R. Franco, Emily A. Reid, Kristine “Krissy” Crallé
On April 27, 2026, Senator Mike Lee (R-UT) and Congressman Glenn Grothman (R-WI) introduced companion bills called “Ending Discrimination in Government Contracting Act.” The bills (H.R. 8511) and (S. 4390) seek to eliminate federal contracting preferences for “socially and economically disadvantaged individuals” and “small business concerns owned and controlled by women,” essentially gutting the statutory bases for the Small Business Administration’s Woman-Owned Small Business (WOSB) and 8(a) Business Development Program (the 8(a) Program). Following President Trump’s March 26, 2026, Executive Order titled “Addressing DEI Discrimination by Federal Contractors,” these two bills are the latest efforts to remove contracting preferences based on race, ethnicity, and sex. Both bills have been referred to committee and are currently under review. Government contractors should monitor these developments closely and consider contacting their Members of Congress if they wish to advocate for these small business programs. Read more here.
The Shifting Landscape for Foreign Ownership, Control, or Influence, Part 1: Understanding the Proposed Rule, PilieroMazza Blog, Isaias “Cy” Alba, IV, Daniel Figuenick, III, Cole R. Fox
The Department of Defense (DOD) recently released a Proposed Rule (Rule) that would expand federal contractors’ and subcontractors’ obligations regarding disclosure of beneficial ownership and foreign ownership, control, or influence (FOCI). FOCI obligations and related beneficial ownership disclosures have historically applied primarily to government contractors and subcontractors holding a facility security clearance and performing cleared government contracts or subcontracts. DOD is now proposing to broaden these often confusing and complex rules. In this blog, PilieroMazza attorneys outline the Rule, its implications for beneficial ownership disclosures, and steps government contractors can take to prepare. Read more here.
Pentagon Reaches Agreements With Defense Firms On Containerized Missiles, The Hill
The Pentagon reached deals with several defense firms that would allow it to buy more than 10,000 low-cost, containerized missiles over the next three years, the department announced Wednesday. Read more here.
Department of War (DOW) News Release: DOW Multiyear Purchases Spur Industrial Base Investments
On May 12, DOW announced investments in the fiscal year 2026 budget and promised in the FY27 budget have heartened companies within the defense industrial base to invest in their own capabilities and to grow their capacity to produce. Read more here.
Trump’s Staggering Defense Budget Could Weaken Bipartisan NDAA Support, Federal News Network
Sen. Jack Reed, the top Democrat on the Senate Armed Services Committee, warned that President Donald Trump’s proposed $1.5 trillion defense budget could weaken the broad bipartisan support for the must-pass defense policy bill as Democrats grow increasingly uneasy with the massive defense spending proposal. Read more here.
Drone Boats Make Debut In Navy’s 30-Year Shipbuilding Plan, Defense One
The Navy’s new 30-year shipbuilding plan outlines an effort to buy 15 battleships by 2055 and reveals details about the 80-plus robot boats it aims to add within five years. Read more here.
Hegseth Rethinking Army Reforms, Cuts To Aviation, Defense One
A year ago, Pete Hegseth handed the Army a to-do list that has reshaped the service’s capabilities and how it acquires new ones. But now he’s rethinking some of those changes. One year after launching the Army Transformation Initiative, SecDef says he’s reviewing the to-do list. Read more here.
GOP’s $72 Billion ICE, CBP Bill Faces Hurdles: BGOV Budget, Bloomberg Government
Lawmakers return to Washington this week, giving Republicans less than a month to deliver their party-line immigration enforcement bill to President Donald Trump’s desk. Trump has set a June 1 deadline for Republicans to pass a bill surging $72 billion to immigration enforcement, with the bulk of it going toward Immigration and Customs Enforcement along with Border Patrol. Read more here (subscription required).
House Panel Approves Slate Of DHS Intelligence Reform Bills, NextGov/FCW
The House Homeland Security Committee advanced a raft of bills seeking to refine the Homeland Security Department’s Office of Intelligence and Analysis and improve its ability to defend against various threats targeting state, local, tribal and territorial communities. The measures aim to modernize terror alerts, expand local threat support and standardize training under the Office of Intelligence and Analysis, which the Trump administration is seeking to restructure. Read more here.
The Army Wants To Reinvent How It Feeds Soldiers In The Field, Washington Technology
A new sources sought notice targets alternative protein technologies as a means to reduce logistics burdens and strengthen supply chain resilience. Read more here.
Government Accountability Office (GAO) Press Release: GAO Identifies Major Opportunity: Implementing Open Recommendations Could Deliver $132 to $251 Billion in Future Savings
On May 12, GAO announced that it released new analyses regarding federal government accountability. GAO found that the federal government has taken meaningful strides in reducing waste and improving efficiency — but also revealed hundreds of billions of dollars in savings and critical policy reforms that remain. GAO estimated that acting on its open recommendations to Congress and federal agencies could yield between $132 billion and $251 billion in future savings. Read more here.
Senate Unanimously Advances Resolution Suspending Senators’ Pay During Shutdown, The Hill
The Senate on Wednesday unanimously voted to advance a resolution sponsored by Sen. John Kennedy (R-La.) to suspend senators’ pay during a government shutdown, something that could give lawmakers a powerful incentive not to shutter federal departments because of funding disputes in future years. Read more here.
Upcoming Presentations
WEBINAR: The Buy American Act and Trade Agreements Act, May 28, 2026, Jacqueline K. Unger
CONFERENCE: Biggest Shifts in GovCon Law, June 10, 2026, Eric A. Valle
SEMINAR: AI Clauses in Federal Contracts: Managing Procurement Risk, Compliance, and Competitive Advantages, June 10, 2026, Ryan Boonstra
WEBINAR: GovCon 101: Small Business Programs, July 13, 2026, Meghan Leemon
Department of Labor (DOL) Final Rule:
- Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees; Implementation of Federal Court Judgments: On May 15, DOL’s Wage and Hour Division published a final rule and technical amendment implementing the judgments of federal courts vacating the DOL’s 2024 final rule revising regulations issued under the Fair Labor Standards Act implementing the exemptions from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees. Through this technical amendment, DOL is removing from the Code of Federal Regulations the regulatory text from the now-vacated 2024 rule and republishing in its place the regulatory text as it existed prior to the effective date of that rule. The rule is available here and is effective as of May 15, 2026.
- News Release: DOL Reinforces English Language Proficiency Requirements For Foreign Workers Operating Commercial Motor Vehicles: On May 14, DOL announced that the Office of Foreign Labor Certification issued sub-regulatory guidance in the form of frequently asked questions to clarify the information employers are required to provide when seeking foreign workers who will be engaged in the operation of a commercial motor vehicle. Specifically, the FAQs now clarify that all job orders and applications for temporary or permanent labor certification for positions that would require foreign workers to operate a commercial motor vehicle must include an English language proficiency standard. Read more here.
DoD Civilian Workforce Losses Strain Military Installation Operations, Federal News Network
The Pentagon’s deferred resignation program and other civilian workforce reduction efforts have led to staffing shortages in critical installation support roles, which have caused cost increases, inadequate oversight of installation projects and contributed to delays in project design and execution. Read more here.
Punching In: DOL’s Head Wants Industry to Account for AI Jobs, Bloomberg Government
Acting Labor Secretary Keith Sonderling believes his agency can get big companies to help predict how artificial intelligence will change the job market in the coming years. DOL is in the process of securing data-sharing agreements with large corporations to find out how new technology is being implemented and how it is affecting the workforce, Sonderling said at the Special Competitive Studies Project’s AI+ expo last week. Read more here (subscription required).
Texas AG Targets CVS DEI Program, Threatens Fraud Probe, Law360
Texas Attorney General Ken Paxton on Tuesday warned CVS Health its diversity, equity and inclusion program for suppliers may violate state and federal antidiscrimination laws and gave the company 14 days to respond or risk a Medicaid fraud investigation. Read more here (subscription required).
Partisan Lines Emerge as Circuit Courts Tackle NLRB’s Power, Bloomberg Government
Federal appeals courts are assessing the viability of one of the National Labor Relations Board’s (NLRB) most effective tools to protect workers’ rights in the aftermath of a US Supreme Court decision that dialed back the agency’s power to obtain court injunctions against employers. The NLRB will have a harder time winning injunctions in Ohio, Michigan, Tennessee, and Kentucky because of a sweeping decision from the US Court of Appeals for the Sixth Circuit earlier this month. Read more here (subscription required).
UPS Illegally Nixed Raises During Union Election, Labor ALJ Says, Bloomberg Government
United Parcel Service Inc. (UPS) violated federal labor law when it told employees at a Kentucky airport facility that they would not receive a pay raise during a pending union election, a NLRB Judge said. Administrative Law Judge Keltner W. Locke ordered UPS to pay the employees the raises they would have received if not for the labor law violation. Read more here (subscription required).
Upcoming Presentations
TRAINING: Labor Rules & Regulations: Federal Market Compliance, June 24, 2026, Nichole D. Atallah
Upcoming Presentations
CONFERENCE: Buying or Selling: Keys to Successful SDVOSB M&A Transactions, June 2, 2026, Isaias “Cy” Alba, IV
PilieroMazza’s Jessica duHoffmann Honored with Maryland Legal Aid’s Enduring Justice Award, PilieroMazza News, Jessica A. duHoffmann
PilieroMazza is proud to announce that Jessica duHoffmann received the “Enduring Justice Award” at Maryland Legal Aid’s 27th Annual Equal Justice Awards Breakfast. Jessica’s dedication to advancing equal justice and serving communities throughout Maryland reflects the firm’s ongoing dedication to advocacy, service, and meaningful impact. Read more here.
BGOV Bill Analysis: H.R. 8469, Fiscal 2027 MilCon-VA Funding, Bloomberg Government
The Veterans Affairs Department (VA), military construction projects, and related agencies would receive $157 billion in discretionary funding for fiscal 2027 under H.R. 8469, nearly $4 billion or 3% more than the fiscal 2026 enacted level. Total funding for fiscal 2027, including mandatory spending for veterans’ benefits, would be $469.5 billion, according to the House Appropriations Committee Republicans’ summary of the bill. The majority of fiscal 2027 funding for VA comes from advance appropriations provided in the fiscal 2026 appropriations law (Public Law 119-37). Read more here (subscription required).
NIST Aims For Summer Release Of AI Cyber Guidelines, NextGov/FCW
The National Institute of Standards and Technology is slated to debut new guidance on artificial intelligence-specific cybersecurity to help mitigate AI-enabled digital threats while maximizing the benefits of safe AI adoption. Draft iterations of cybersecurity guidance for AI-driven threats across different types of emerging systems are in development as the federal government wades into AI model risk assessments. Read more here.
AI Drives New Debate Around CISA Software Patching Deadlines, Federal News Network
Growing concerns about artificial intelligence-driven cyber-attacks are driving new debates around how quickly organizations should patch software vulnerabilities, including whether federal agencies should be required to meet patch deadlines in days rather than weeks. CISA this year has already started accelerating the deadlines for agencies to patch software bugs posted to the Known Exploited Vulnerabilities (KEV) catalog. Read more here.
Department of Justice (DOJ) Press Release: DOJ Secures $30M Settlement with PayPal Over Unlawful DEI Investment Program
On May 12, DOJ announced a settlement with PayPal Inc. to resolve a fair lending investigation into a “discriminatory” investment program created for black and minority-owned businesses. The settlement requires PayPal to launch a new Small Business Initiative that excludes criteria based on race, national origin, or other protected characteristics. As part of the initiative, PayPal will waive processing fees for $1 billion of transactions – a value of approximately $30 million – for eligible American small businesses that are veteran-owned or engaged in farming, manufacturing, or technology. Read more here.
New Whistleblower Rules Encourage A Nation Of Paid Informants, The Hill
The new whistleblower program is the latest sign of a broader shift in American enforcement policy. Agencies are increasingly turning to whistleblower programs as enforcement tools, moving from a system focused primarily on protecting those who report wrongdoing to one that pays for information. Read more here.
Whistleblower Who Reported Internally Loses Bid for SEC Award, Bloomberg Government
A woman who filed an internal complaint with her company alleging misconduct isn’t entitled to an SEC award because she didn’t report the information directly to the commission, a federal appeals court ruled Friday. The Securities and Exchange Commission didn’t abuse its discretion when it refused to exempt the worker, identified pseudonymously as Jane Doe, from the rule requiring direct submission within 120 days of an internal report, the US Court of Appeals for the District of Columbia Circuit said. Read more here (subscription required).
BGOV Bill Analysis: H.R. 4437, Limited-Scope Small Bank Exams, Bloomberg Government
Small banks and credit unions with $6 billion or less in assets would be subject to less stringent oversight by federal regulators under H.R. 4437. The Federal Deposit Insurance Act requires insured banks and credit unions to undergo full, on-site exams by federal regulators for financial safety, systemic stability, and consumer compliance. In most cases, these supervisory reviews are conducted annually, though some low-risk, small institutions can be reviewed every 18 months. Read more here (subscription required).
###