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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Employee Benefits Security Administration (EBSA) Proposed Rule: Fiduciary Duties in Selecting Designated Investment Alternatives
On March 31, EBSA published a proposed rule and request for comments clarifying and providing a safe harbor for a fiduciary’s duty of prudence under the Employee Retirement Income Security Act of 1974 (ERISA) in connection with selecting designated investment alternatives for a participant-directed individual account plan, including asset allocation funds that include alternative assets. The proposed rule is available here. Comments close June 1, 2026.
Department of Labor (DOL) News Releases:
- DOL Announces $76M Available to Advance Employment Readiness for American Indians, Alaska Natives, Native Hawaiians. On April 2, DOL announced the availability of approximately $76 million in funding to advance employment and training assistance to American Indians, Alaska Natives, and Native Hawaiians. Funding will support American Indian, Alaska Native, and Native Hawaiian adults and youth in developing academic, occupational, and literacy skills. The grants also help individuals become more competitive in the workforce and equip them with entrepreneurial skills needed for successful self-employment. Read more here.
- DOL, National Science Foundation (NSF) Announce Collaborative Efforts on AI Workforce, TechAccess Initiative. On April 2, DOL announced the signing of a Memorandum of Understanding (MOU) with NSF to advance workforce development efforts related to artificial intelligence. The MOU solidifies DOL’s partnership with the NSF on the TechAccess: AI-Ready America initiative, an effort led by NSF to expand access to AI knowledge, tools, and training for American workers and businesses. In addition to the MOU, NSF recently announced it will make available up to $224M in funding for the establishment of up to 56 State/Territory Coordination Hubs to drive AI readiness across the country. Read more here.
- DOL’s Wage, Safety Agencies Join for Webinar Promoting Worker Safety for 2026 Safety Stand-Down. DOL’s Occupational Safety and Health Administration is hosting an April 8 webinar to help employers of all industries participate in a 2026 Safety Stand-Down. The webinar will offer support to employers planning events as part of the 20th annual Georgia Struck-by Alliance’s Safety Stand-Down, which is celebrated annually during National Work Zone Awareness Week. In observance of the annual Safety Stand-Down, employers pause work to focus on the prevention of serious injuries and fatalities through training, education, and demonstration of safe workplace practices. Read more here.
- DOL Launches Landmark Initiative to Integrate Artificial Intelligence Skills into Registered Apprenticeships Nationwide. On April 1, DOL announced a national contracting opportunity designed to accelerate the integration of artificial intelligence skills into Registered Apprenticeship programs, marking a major step forward in preparing the American workforce for the jobs of the future. Read more here.
- DOL Proposes Landmark Rule to Democratize Access to Alternative Investments in 401(k) Plans. DOL’s Employee Benefits Security Administration (EBSA) today issued a historic proposed regulation increasing potential retirement investment options for more than 90 million Americans. The proposed regulation explains the steps that managers of 401(k) plans should take when considering alternative assets as a component in their investment lineups and establishes a set of process-based safe harbors for plan fiduciaries to use when selecting designated investment alternatives. The proposal follows President Trump’s Executive Order, “Democratizing Access to Alternative Assets for 401(k) Investors.” Read more here.
Trump’s Budget Calls for 2027 Pay Freeze, Government Executive
President Trump’s fiscal 2027 budget proposal, released Friday morning, would freeze federal civilian employees’ pay in 2027, all while granting a sizeable raise for members of the armed services. An OMB spokesperson told Government Executive that under Trump’s budget, civilian workers would receive no pay increase next January. But under the plan, members of the military would receive between a 5% and 7% pay increase, with the highest raises going to the lowest-ranked personnel. Read more here.
Trump Federal Union Contract Purge Draining Groups’ Resources, Bloomberg Government
Federal agencies’ cancellation of their workers’ collective bargaining agreements compounds legal and financial hurdles for labor groups already struggling to respond to the Trump administration’s culling of the workforce. President Donald Trump signed two executive orders last year ordering agencies to end union contracts for over 1 million federal workers, citing national security concerns. While the unions have fiercely litigated the ensuing cancellations, labor observers say the groups face an uphill battle in the courts. Read more here (subscription required).
US Job-Cut Announcements in Tech Keep Rising with AI Adoption, Bloomberg Government
Layoff announcements at technology companies continued to mount in March, leading other industries in overall US job-cut plans as investment in artificial intelligence catalyzes leaner staffing levels. Read more here (subscription required).
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
Presidential Memorandum: Liberating the Department of Homeland Security (DHS) from the Democrat-Caused Shutdown
On April 3, the President issued a memorandum instructing the DHS and the Office of Management and Budget to “use funds that have a reasonable and logical nexus to the functions of DHS to provide each and every employee of DHS with the compensation and benefits that would have accrued to them if not for the Democrat-led DHS shutdown, consistent with applicable law, including 31 U.S.C. 1301(a).” Read more here.
Buy American and Made in USA: One Slogan, Two Compliance Systems, Federal News Network
Business executives and their legal counsel have a common, yet avoidable, problem: Companies treat domestic-content compliance for federal work as permission to brand products as Made in USA and recycle marketing claims into bid packages as shorthand for procurement eligibility. Those shortcuts are where risk starts, because “Buy American” and “Made in USA” are different legal regimes with different tests, owners, and enforcement pathways. In the wake of President Donald Trump’s March 13 Executive Order, Ensuring Truthful Advertising of Products Claiming to be Made in America, companies must remain vigilant and ensure that their business and legal teams are aligned on American-origin claims, lest a company’s marketing claims land them in the government’s crosshairs. Read more here.
Cuts Hit CISA, NIST and IRS in Trump’s FY27 Budget, Government Executive
President Donald Trump’s fiscal year 2027 budget is out, laying out the administration’s priorities but setting up a proposal that is likely to change significantly as it moves through Congress toward final approval. Read more here.
Startup Takes a Different Approach to AI Assistants, Defense One
The Pentagon is eager to incorporate AI “agents”—software that can autonomously execute complex tasks like customer service, scheduling, or code writing—into more of what soldiers and defense civilians do. But a growing body of research shows that agents built from well-known large language models exhibit unpredictable and dangerous behaviors even in benign settings. Read more here.
DHS to Fold Intelligence Office into Headquarters under Trump’s 2027 Budget Plan, Government Executive
DHS’s Office of Intelligence and Analysis would be absorbed into DHS headquarters under a consolidation plan proposed in President Donald Trump’s fiscal year 2027 budget, setting up a potential showdown with Congress in the coming months over the office’s organization and authority. Read more here.
Civilian Agencies Face 10% Cuts in Trump’s 2027 Budget, Government Executive
President Trump proposed a $2.2 trillion fiscal 2027 budget, an overall increase on current spending that would include cutting non-defense agencies by 10%, or by $73 billion. The proposed reductions were far less severe than the 22% in non-defense spending that the White House suggested chopping in the fiscal 2026 blueprint after Congress largely ignored those suggestions. However, most major agencies would still see their budgets reduced under the new submission. Read more here.
Trump Proposes $350 Billion in Defense Reconciliation Funding, Bloomberg Government
The White House’s unprecedented $1.5 trillion national defense budget request includes $350 billion in mandatory spending that Congress would have to include in a reconciliation measure. Read more here (subscription required).
AI Boat Maker Saronic Smashes $9 Billion Valuation, Defense One
Robot shipbuilder Saronic raised nearly $2 billion to expand production and develop new vessels as the Navy seeks refined options for medium unmanned surface vessels. 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
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
LITIGATION & DISPUTE RESOLUTION
The Trust Trap: How Minor Mistakes with Spoofed Emails Can Lead to Major Losses, PilieroMazza Blog, Matthew E. Feinberg
GovCon Co., a successful government contractor, receives an email from the billing or accounting representative of a trusted subcontractor, Service Corporation, asking for payment of an outstanding invoice for $400,000, stating: “Please note our new bank account information in your system for any current and future wire transfers.” The email includes the Service Corporation logo and the name of the company representative with whom GovCon Co. normally deals. Everything seems to be in line with typical practices. However, the accounts payable clerk fails to notice that the email came from accounts@servicecorparation.com, instead of accounts@servicecorporation.com. It is a minor difference that does not immediately catch the eye. GovCon Co. wires the money to pay the invoice, believing it has satisfied its payment obligations. A few weeks later, the business partner calls and asks why the latest invoice has not been paid. An investigation ensues, and it is discovered that GovCon Co., in wiring the money to the new bank account, was actually paying a cyber thief who posed as the trusted business partner. Fraudsters are targeting government contracting firms with this brand of social engineering fraud, and companies must take immediate action to protect themselves from social engineering attacks that could result in substantial financial losses. Read more here.
Upcoming Presentations
TRAINING: Legal Considerations: How Best to Structure Your Company as a Federal Contractor, April 14, 2026, Isaias “Cy” Alba, IV
PM WEBINAR: Contract Basics for Entrepreneurs: The Contracts You Need in Your Legal Toolkit as You Scale Your Business, May 7, 2026, Kristen Centre
Data Privacy Emerges As a ‘Core American Value,’ Expert Says, Route Fifty
As the federal government continues its fight to access states’ sensitive data on residents, a new report underscores Americans’ support for stronger data privacy guardrails and protections. Read more here.
Small Business Administration (SBA) News Releases:
- SBA Announces New “Made in America Loan Guarantee” to Restore Manufacturing Dominance. On March 31, SBA announced that small manufacturers across the country will soon be eligible for enhanced support through the SBA’s International Trade Loan (ITL) Program. The loans, which come with a 90% federal guarantee, will help manufacturers expand facilities, hire workers, and increase production – as part of the Trump Administration’s broader effort to rebuild America’s industrial dominance and strength. In addition, the SBA recently expanded ITL eligibility to include small businesses across the food supply chain, including those in the agriculture, production, and logistics industries. Read more here.
- Grocery Guarantee to Promote Affordability. On March 27, SBA announced that small businesses across America’s food supply chain are now eligible for an enhanced “Grocery Guarantee” through the SBA International Trade Loan Program. The loans, which come with a 90% federal guarantee, will be available to a broad range of producers in the agriculture and logistics industries, to expand food production and supply, with the aim of reducing grocery costs for consumers. Read more here.
Small Business Administration (SBA) Notice: Interest Rates
On March 30, SBA published a notice announcing the Optional Peg Rate. This rate is a weighted average cost of money to the government for maturities similar to the average SBA direct loan. This rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. This rate will be 4.50 percent for the April-June quarter of FY 2026. The notice is available here.
General Services Administration (GSA) News Release: GSA Seeks Innovative Solutions to Charge Up the GSA SmartPay® Program
On April 3, GSA issued a Request for Information (RFI) seeking industry feedback to inform the acquisition strategy for the next generation of the GSA SmartPay® program. GSA SmartPay is the world’s largest government charge card and related payment services program. The deadline for RFI responses is June 19, 2026. A virtual Industry Day will be held May 19-21, 2026. Read more here.
General Services Administration (GSA) Multiple Award Schedule (MAS) Activity Feed: FAS Catalog Platform (FCP) First Steps Process to Include T&C File Update
“Starting on April 6, updating your Terms & Conditions File will be a required step in the FCP First Steps onboarding process. Maintaining a current T&C File has always been a required condition of your MAS contract, and now FCP will make it an easy part of vendor onboarding. A T&C File update will be required if you are: (i) a new contractor (awarded after August 28, 2025) and have not yet established your initial T&C File in FCP; (ii) brand new FCP user, to ensure your T&C File is up to date; or (iii) an existing FCP user adding a new catalog offering that requires a new Baseline action (e.g., introducing services after previously offering only products on GSA Advantage).” Read more here.
Underused Federal Offices Targeted as GSA Releases Utilization Data, Government Executive
The General Services Administration released federal office space utilization data, which officials said would aid the Trump administration in its effort to reduce the government’s real estate portfolio. Read more here.
Financial Crimes Enforcement Network (FinCEN) Proposed Rule: Whistleblower Incentives and Protections
On April 1, FinCEN published a proposed rule and request for comments that establishes a whistleblower program offering incentives and protections to encourage individuals who have information about potential violations of the Bank Secrecy Act, International Emergency Economic Powers Act, Trading with the Enemy Act of 1917, and Foreign Narcotics Kingpin Designation Act to voluntarily report such information. The rule is available here. Comments close June 1, 2026.
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