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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Trump Administration’s Latest Executive Order on DEI Requires Immediate Action for Government Contractors, PilieroMazza Client Alert, Matthew E. Feinberg, Sarah L. Nash
On March 26, 2026, the Trump Administration issued a new Executive Order (EO) targeting diversity, equity, and inclusion (DEI) policies for federal contractors. The EO continues the Trump Administration’s hyper-trained focus on DEI, or what the President believes constitutes “racial discrimination in American society.” It follows a Department of Justice (DOJ) memorandum issued in May 2025 in which DOJ indicated it would utilize the False Claims Act (FCA) to target DEI policies for federal contractors, educational institutions, and companies doing business with the federal government. In the latest EO, the President states that “DEI activities are not only unethical and often illegal, but also cause inefficiencies, waste, and abuse within entities that engage in such practices” and raises concerns that the alleged costs associated with federal contractors’ DEI policies are then passed on to the government. The Trump Administration’s latest Executive Order on DEI has an immediate impact on federal prime contractors and subcontractors, requiring amendments to existing subcontracts, revision of internal corporate policies, and imposing FCA liability and administrative penalties for non-compliance. Read more here and visit this link to register for our webinar on this important topic for government contractors.
Department of Labor (DOL):
- News Release: DOL Launches ‘Make America AI-Ready’ Initiative: On March 24, DOL announced the launch of “Make America AI-Ready,” a free artificial intelligence literacy course to help workers learn the basics of AI. The course engages participants with daily content that directly aligns with the five foundational areas outlined in the DOL’s recently released AI Literacy Framework. Read more here.
- Notice of Proposed Rulemaking (NPRM): Improving Wage Protections for the Temporary and Permanent Employment of Certain Foreign Nationals in the United States: On March 27, DOL’s Employment and Training Administration (ETA) published an NPRM and request for comments regarding its proposal to revise its regulations governing the prevailing wages for employment opportunities that U.S. employers seek to fill with alien workers on a permanent or temporary basis through certain EB-2 and EB-3 employment-based immigrant visas via the Permanent Labor Certification (PERM) program or through H-1B, H-1B1, or E-3 nonimmigrant visas. Specifically, DOL is proposing to amend its regulations governing the PERM program and Labor Condition Applications (LCAs) to incorporate changes to the computation of wage levels under the four-tiered prevailing wage structure based on the Occupational Employment and Wage Statistics (OEWS) wage survey. The rule is available here. Comments close May 26, 2026.
Upcoming Presentations
TRAINING: Labor Rules & Regulations: Federal Market Compliance, April 15, 2026, Sarah L. Nash
PM WEBINAR: The New DEI Crackdown: What Federal Contractors Must Do Now, April 22, 2026, Sarah L. Nash, Matthew E. Feinberg, Lauren Brier
WEBINAR: Future-Proofing Your Contracts: Legal Compliance Updates for Government Contractors, April 23, 2026, Nichole D. Atallah
TRAINING: ABCs of the SCA: Critical Path Service Contract Act Training for Government Contractors, April 28-30, 2026, Nichole D. Atallah, Sarah L. Nash
Senate Gives House a Second Chance to Deliver DHS Funding, Politico
The early morning vote in a mostly empty chamber paves the way for an end to the record-setting agency shutdown. The Senate sent its deal to fund most of the Department of Homeland Security back to the House on Thursday morning — marking what should be the beginning of the end of a historic partial government shutdown. Read more here.
DHS Nominee Clears Key Senate Hurdle, Setting Up Final Confirmation Vote, Government Executive
The Senate voted Sunday to advance Sen. Markwayne Mullin, R-Okla., nomination to lead the Department of Homeland Security. The 54-37 procedural vote sets up a final vote on Mullin’s confirmation as early as Monday. Sen. John Fetterman, D-Pa., voted to advance Mullin after backing him in committee as well. Also voting with Republicans was Sen. Martin Heinrich, D-N.M. Read more here.
Faster to the Fight: How the Navy is Reengineering SBIR/STTR Innovation, PilieroMazza Blog, Isaias “Cy” Alba, IV, Adel Mansour
Earlier this month, the U.S. Navy announced a significant overhaul of its Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, with a renewed emphasis on speed, efficiency, and commercialization. The changes are intended to accelerate how quickly innovative technologies move from concept to deployment, which is unsurprising given the U.S. Department of War’s (DOW) focus on speed and supporting the warfighter. As these reforms begin to take shape, small business contractors should make efforts to assess their commercialization readiness while balancing their compliance requirements. Read more here.
Army to ‘Narrow’ Right-To-Repair Effort In Next NDAA After Industry Pushback, Federal News Network
The Army is continuing its push for right-to-repair reform after Congress stripped the provisions from the 2026 defense policy bill following industry pushback, but a top official signaled to defense contractors that the renewed effort would be “very narrow.” Read more here.
Department of War (DOW) News Release: DOW Comptroller and IG Announce Refined Approach to Achieve FY28 Clean Audit Objective
On March 24, DOW announced that a refined approach is underway to support DOW’s efforts to achieve a clean audit opinion by 2028. The refinements outlined in a joint memo between the Office of the Under Secretary of War (Comptroller) and the Office of Inspector General (OIG) will help the Department streamline financial reporting and accelerate DOW’s efforts to obtain a clean opinion in FY28. Read more here.
Navy Bolsters Platforms With 5G, Eyes Ship-To-Ship Connections, Federal News Network
The Navy is continuing a yearlong push to embed fifth-generation wireless technologies across its systems and installations, with the service’s 5G Integrated Product Team “making progress” on expanding network coverage. Read more here.
Government Accountability Office (GAO) Report: Commercial Shipbuilding: Selected Offshore Wind Projects Used a Mix of U.S. and Foreign Vessels, Spurring Some Shipbuilding Investments
On March 26, GAO released a report detailing the extent to which U.S. ships and crews carried out offshore wind projects. This report discusses (1) the extent to which U.S.-flag vessels and domestic mariners were used at selected offshore wind projects and (2) investments in U.S.-built offshore wind vessels, including any use of Maritime Administration financial assistance programs. GAO selected three offshore wind projects under construction as of August 2025 and analyzed developer-provided data on the vessels used as of November 2025. GAO estimated the range in the number of mariners on these vessels based on vessel specifications and discussions with the U.S. Coast Guard and a mariners’ union. GAO reviewed an August 2025 study on investments in offshore wind vessels by the American Clean Power Association; spoke with 11 vessel owners and 11 stakeholders identified based on their expertise; reviewed relevant laws; and interviewed officials from the Maritime Administration, Interior, Department of Energy, and Department of Homeland Security. Read more here.
Trump Administration Merges Interagency Council Websites Into Single Hub, Federal News Network
The Trump administration is focused on reducing the number of “confusing government websites” as part of the President’s Management Agenda. The Trump administration is launching a one-stop online portal for several government-wide councils and is in the process of decommissioning their old websites. A newly launched Councils.gov, which went live last week, brings together online resources for 10 interagency organizations — including the Chief Information Officers Council, the Chief AI Officers Council, and the Chief Data Officers Council. Read more here.
Upcoming Presentations
TRAINING: Small Business Contracting & Subcontracting, April 15, 2026, Eric Valle
WEBINAR: Tariffs in Government Contracting, April 23, 2026, Jacqueline K. Unger
WEBINAR: Using JVs to Win Work with GSA and Beyond, April 30, 2026, Meghan F. Leemon
TRAINING: SBA Regulatory Updates, May 19, 2026, Eric A. Valle
WEBINAR: The Buy American Act and Trade Agreements Act, May 28, 2026, Jacqueline K. Unger
Navigating the Termination Threat of President Trump’s Latest DEI Executive Order for Government Contractors, PilieroMazza Blog, Lauren Brier, Josie Farinelli
On March 26, 2026, the Trump Administration issued a new Executive Order (EO) that all-but promises contract termination for federal contractors whose diversity, equity, and inclusion (DEI) policies are deemed non-compliant with the EO. The EO builds on the Administration’s ongoing scrutiny of DEI initiatives, following a May 2025 Department of Justice (DOJ) memorandum signaling the use of the False Claims Act (FCA) to challenge DEI practices within federal contracting, higher education, and other federally funded entities. This blog specifically addresses what contractors need to know when faced with the EO’s immediate and significant threat of contract termination for prime contractors and subcontractors who fail to ensure strict compliance with the EO. Read more here and visit this link to register for our webinar on this important topic for government contractors.
Upcoming Presentations
WEBINAR: Don’t Leave Money on the Table: Unlocking Federal Contract Disputes to Increase Cost Recovery, April 3, 2026, Lauren Brier, Jonathan “Jon” R. Neri
PM WEBINAR: Contract Claims 101: The Fundamentals of Contract Administration Disputes, April 16, 2026, Josie Farinelli, Abigail “Abby” Finan, Kelly A. Kirchgasser
BUSINESS & TRANSACTIONS / MERGERS & ACQUISITIONS
Upcoming Presentations
TRAINING: Legal Considerations: How Best to Structure Your Company as a Federal Contractor, April 14, 2026, Isaias “Cy” Alba, IV
Government Accountability Office (GAO) Report: Artificial Intelligence (AI): OMB Action Needed to Address Privacy-Related Gaps in Federal Guidance
On March 26, GAO released a report detailing its review of the risks and challenges associated with protecting privacy when using AI and the extent to which OMB addressed these risks and challenges in government-wide guidance. GAO assembled a panel of experts and compiled a non-exhaustive list of privacy risks and challenges associated with AI. GAO also reviewed OMB’s AI-related guidance to determine if it highlighted the specific types of privacy risks identified by the experts. Further, GAO compared OMB’s AI-related government-wide guidance to 10 selected challenges to determine if they could be addressed by the contents of the guidance. Read more here.
New ‘Quirks’ Could Make States’ Privacy Laws Impossible To Follow, Experts Worry, Route Fifty
Speakers during a recent webinar repeated their calls for Congress to pass a national standard and warned that new approaches in several states could complicate matters further. Read more here.
FALSE CLAIMS ACT / AUDITS & INVESTIGATIONS
A Kick in the Asphalt: $30 Million Settlement Highlights FCA Risk for Construction Contractors, PilieroMazza Blog, Matthew E. Feinberg, Kane Smith
Earlier this year, the Department of Justice (DOJ) announced it amassed a record $6.8 Billion in fraud and False Claims Act (FCA) recoveries in Fiscal Year 2025. New FCA matters also increased substantially, driven in large part by a significant rise in suits brought by whistleblowers. As part of DOJ’s and whistleblowers’ relentless focus on pursuing claims of fraud committed against the federal government, construction contractors have come under heightened scrutiny. Recently, two Ohio asphalt companies paid a combined $30 Million to settle FCA allegations that they submitted fraudulent testing data for federally funded highway projects. This FCA settlement is an important reminder for construction contractors doing business with the federal government: compliance with statutory, regulatory, and contractual obligations is critical, and taking shortcuts can cost the company far more in the long run than they save in the short term. Read more here.
New Bills Would Extend Whistleblower Protections To More Feds, Government Executive
Sen. Chuck Grassley, R-Iowa, recently introduced two bills to expand the number of federal employees covered by whistleblower protection laws. The measures specifically deal with civil servants who investigate and report wrongdoing in their normal duties and those who work for government corporations. Read more here.
INTELLECTUAL PROPERTY & TECHNOLOGY RIGHTS
Government Accountability Office (GAO) Report: Veterans Affairs: Further Actions Needed to Address Software License Management Challenges
On March 23, GAO released a statement for the Congressional Record to the House of Representatives, Committee on Veterans’ Affairs, Subcommittee on Oversight and Investigations, regarding the software licensing practices of the Department of Veterans Affairs (VA). This statement summarizes two 2024 GAO reports on VA software license management, including VA’s efforts to track software license usage and manage restrictive licensing practices. The statement also addresses the status of VA’s actions in response to recommendations from those reports. GAO reviewed its prior work, VA documentation related to the status of efforts to implement the recommendations, and information provided by VA in March 2026 as part of GAO’s ongoing work. GAO made four recommendations in its two recent 2024 reports for VA to improve its management of software licenses and mitigate the effects of restrictive software licensing practices. It is essential that VA implements the recommendations to minimize costs and mitigate restrictive licensing impacts. Read more here.
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