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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Introducing the PilieroMazza Foundation, PilieroMazza News, Jon Williams
PilieroMazza is proud to announce the launch of the PilieroMazza Foundation, a charitable initiative that reflects the firm’s longstanding commitment to service, community involvement, and giving back. Building on a tradition of supporting causes that matter to our attorneys, staff, clients, and communities, the Foundation will serve as a platform for meaningful philanthropy, employee volunteerism, and community engagement. Read more here.

PilieroMazza Attorneys Recognized in 2026 Super Lawyers and Rising Stars, PilieroMazza News
PilieroMazza is proud to announce that several of the firm’s attorneys—across multiple practice areas, including Government ContractsConstructionLabor & Employment, and Litigation & Dispute Resolution—were selected for inclusion in the 2026 Super Lawyers and Rising Stars lists. Super Lawyers recognizes attorneys who have attained a high degree of peer recognition and professional achievement, while Rising Stars honors outstanding lawyers who are either 40 years old or younger or in practice for 10 years or less. Read more here.


LABOR & EMPLOYMENT

No Severance, No Noncompete: Virginia Mandates Employers Pay for Enforceable Noncompete Agreements Against Laid-Off Employees, PilieroMazza Client Alert, Nichole D. AtallahSarah L. NashZachary S. StinsonCorey Bohn
Virginia has become increasingly hostile to noncompetition agreements as of late.  Starting July 1, 2026, Virginia employers will be prohibited from enforcing new noncompete agreements against employees who are laid-off or fired without cause—unless the employer pays them severance or another amount that it specifies upfront in the noncompete agreement. Before the law takes effect, Virginia employers should review their noncompete agreements and employee separation practices to ensure compliance and minimize legal and financial penalties. Read more here.

Trump Administration Pushes Governmentwide NDA For Federal Employees, Federal News Network
Federal employees may soon have to sign strict non-disclosure agreements, according to a new government-wide proposal from the Trump administration. Violations of the NDA could result in disciplinary action, including terminations or civil and criminal penalties for federal employees, OPM said. Read more here.

Department Of Labor (DOL) News Release: DOL Finalizes Rule Protecting Union Workers
On May 29, DOL announced a final rule that increases financial transparency for unions regulated by the Labor-Management Reporting and Disclosure Act of 1959 and enhances union worker protections.   Issued by the department’s Office of Labor-Management Standards, the final rule modernizes the reporting requirements of the Form LM-2, an annual financial disclosure form that larger labor organizations use to report their financial conditions and operations under the Act. Read more here.

The Faster Labor Contracts Act Disempowers Workers, The Hill
The Faster Labor Contracts Act will soon get a vote in the House of Representatives, thanks to a discharge petition filed by Rep. Donald Norcross (D-N.J.). This proposal enjoys almost universal support from Democrats and from several Republicans. Rep. Brian Fitzpatrick (R-Pa.) promised the Teamsters union the bill would pass in the House, “That is a guarantee.” That would be unfortunate for working people, because the bill would deprive them of the ability to negotiate their terms and conditions of employment, substituting edicts from government-mandated arbitrators instead. Read more here.

Upcoming Presentations

TRAINING: Labor Rules & Regulations: Federal Market Compliance, June 24, 2026, Nichole D. Atallah

TRAINING: FUN with the FAR 2026: FAR 22 & 23, July 8, 2026, Nichole D. Atallah


GOVERNMENT CONTRACTS

Office of Management and Budget (OMB) Proposed Rule: Regulation for Federal Financial Assistance
On May 29, OMB published a proposed rule revising the Guidance for Federal Financial Assistance to improve government-wide policies and requirements related to the management of grants, cooperative agreements, and other forms of assistance. OMB is proposing revisions that would improve transparency, accountability, and oversight for Federal awards across the Federal Government. This includes ensuring that American tax dollars are not wasted or misused, activities performed under Federal awards are consistent with law and policy, and recipients are held accountable when they fail to meet relevant standards. The revisions also aim to ensure that basic American principles of equality and equal opportunity are upheld throughout all stages of the award-making process and that unlawful discrimination is no longer permitted. Proposed changes also include providing further clarification on the regulatory status of the OMB requirements and on the process for future updates to the government-wide requirements. Finally, OMB also proposes changes to reduce recipient burden. The listed Federal grant-making agencies propose conforming changes to their respective adopting regulations, or, in the case of some agencies and other entities, establishing new adopting regulations or policies. The rule is available here. Comments close July 13, 2026.

House NDAA Would Set Up Protected Disclosure Program For AI Incidents, Federal News Network
House lawmakers want to establish a protected disclosure program for employees and contractors to ensure artificial intelligence doesn’t go off the rails at the Defense Department. The goal of the proposed Pentagon program would be to identify “recurring risks, failure modes, vulnerabilities, and systemic weaknesses” in AI systems. Read more here.

House Armed Services Chair Unveils Draft Defense Bill, Law360
Rep. Mike Rogers, chairman of the House Armed Services Committee, released his draft of the nearly $1.15 trillion National Defense Authorization Act for fiscal year 2027 on Tuesday, focusing on revitalizing the U.S. defense industrial base and supporting small businesses. Read more here (subscription required). 

House Draft Of Defense Policy Bill Leaves Some Of Trump Admin’s Top Priorities Unfunded, Defense One
An initial draft of the annual defense policy bill shows the House is still banking on billions of yet-to-be-approved funds for the Trump administration’s top military priorities. The draft bill doesn’t include reconciliation dollars. Read more here.

What’s In The House Surface Transportation Funding Bill? Law360
The House Transportation and Infrastructure Committee advanced a $580 billion five-year surface transportation reauthorization bill on Friday to fund roads, bridges, transit and rail improvement projects, and highway and motor carrier safety programs, and establish the first-ever federal regulatory framework for autonomous commercial vehicles. Read more here (subscription required). 

The White House Is Ordering Agencies To Place Its New App On All Employees’ Government Phones, Government Executive
The newly created, often overtly political app places the Trump administration into unprecedented and “dangerous” territory, IT experts say. The White House recently unveiled a new app to give the public “unfiltered” access to “key priorities,” “historic moments,” and “policy breakthroughs.” Now, it’s directing agencies to help install it on the government phones of federal employees. Read more here.

Upcoming Presentations

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

TRAINING: FUN with the FAR 2026: 19 & 26, June 24, 2026, Isaias “Cy” Alba, IV

PM WEBINAR: Joint Venture Eligibility: Refresher and Updates on Requirements for Government Contractors, July 9, 2026, Meghan Leemon

WEBINAR: GovCon 101: Small Business Programs, July 13, 2026, Meghan Leemon 

WEBINAR: Legal Strategies & Capture Planning, July 17, 2026, Isaias “Cy” Alba, IV


PRIVATE EQUITY & VENTURE CAPITAL

Lawmakers Raise Alarm Over PE-Backed DOD Contractors, Law360
Three Democratic lawmakers wrote to Secretary of Defense Pete Hegseth expressing concern over the Pentagon’s growing reliance on private equity-backed defense contractors, which they said could pose risks to taxpayers and national security. Read more here (subscription required).


CORPORATE & ORGANIZATIONAL GOVERNANCE

Government Accountability Office (GAO) Report: Corporate Transparency: Treasury Should Address Gaps in Ownership Information Resulting from Expanded Exemptions
On May 29, GAO released a report (1) describing regulatory and reporting requirements for exempt entities, (2) assessing the extent to which such entities can pose significant risks of illicit finance activity, and (3) examining Treasury’s plans to monitor and report on those risks. GAO recommends that Treasury identify potential actions to address the risks posed by the domestic reporting company and U.S. person exemptions and provide Congress and law enforcement with information that addresses these risks. Treasury disagreed with the recommendation. GAO continues to believe that actions for this recommendation are needed, as discussed in the report. Read more here.


FALSE CLAIMS ACT

DOJ To Speed Up Review Of Qui Tam Benefits Fraud Claims, Law360
The U.S. Department of Justice announced that it’s speeding up the agency’s review of whistleblower complaints accusing contractors of defrauding state-administered benefits programs that are funded by the federal government, in violation of the False Claims Act.  Read more here (subscription required).


AUDITS & INVESTIGATIONS 

GSA Joins White House’s Fraud Prevention Task Force, Nextgov/FCW
The General Services Administration announced that it is joining the White House’s anti-fraud task force, a move that enlists a key federal acquisition agency into President Donald Trump’s self-described “war on fraud.” The agency said it will support the unit’s efforts by identifying waste, fraud, and abuse across government contracting programs. Read more here.

Bipartisan Bill Would Rein In Gov’t Subpoena Use, Law360
A bipartisan group of lawmakers has introduced a bill intended to stop the federal government’s “abuse” of subpoenas for phone and internet records in order to safeguard individuals’ privacy rights. Read more here (subscription required). 

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