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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BUSINESS & TRANSACTIONS / MERGERS & ACQUISITIONS
Navigating the Recent Ban on Foreign Ownership for SBA Loans, PilieroMazza Client Alert, Isaias “Cy” Alba, IV, Daniel Figuenick, III
Earlier this month, the U.S. Small Business Administration (SBA) banned foreign nationals, non‑citizens, and lawful permanent residents whose principal residence was outside of the U.S. from owning any interest in a small business applicant of a SBA‑guaranteed small business loan under the 7(a) and 504 programs. Effective April 1, 2026, that ban will expand to the Surety Bond (Procedural Notice 5000-877134) and Microloan (Procedural Notice 5000-877232) programs. Below, PilieroMazza highlights what this means for businesses that regularly apply for SBA-backed loans as well as those that don’t. Read more here.
M&A Value Surged in Record Start to 2026, Deal Volumes Drop, Law360
Global mergers and acquisitions values had a record start to the year, reaching roughly $813.3 billion through Thursday, even as transaction numbers dipped to historic lows, according to PitchBook data. Read more here (subscription required).
Upcoming Presentations
TRAINING: Legal Considerations: How Best to Structure Your Company as a Federal Contractor, April 14, 2026, Isaias “Cy” Alba, IV
White House Offers Concession on Body Cameras in Bid to End DHS Shutdown, USA Today
Seeking to end the rapidly worsening shutdown of the Department of Homeland Security, the White House has offered to expand the use of body-worn cameras for federal immigration enforcement agents and limit their activities at churches, schools, and hospitals. But a month into the crisis, the Trump administration is still holding firm on one of the more contentious parts of the debate to reform the 9/11-era Cabinet agency, opposing any kind of ban on masks for law enforcement officers. Read more here.
Federal Acquisition Regulation (FAR) Final Rule: Trade Agreements Thresholds
On March 13, the Department of Defense, General Services Administration, National Aeronautics and Space Administration, and the Office of Federal Procurement Policy published a final rule updating the FAR to incorporate revised thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative. The rule is available here and is effective as of March 13, 2026. The Federal Acquisition Circular (FAC) Introduction is available here, and the FAC Small Entity Compliance Guide is available here.
Department of War (DOW):
- Memoranda Implementing the Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO): In March 2026, DOW issued three class deviations implementing the RFO Parts 8, 15, and 42 and applying the same to the Defense FAR Supplement (DFARS) Parts 208, 215, and 242. DOW has now implemented RFO Parts 1, 3-19, 22-37, 39-50, and 52. DOW class deviations for the RFO can be found here.
- News Release: JIATF 401 Publishes Guide to Counter-Drone Technology and Privacy Protections: The Joint Interagency Task Force 401 today announced the publication of “Counter-UAS Operations: Safeguarding Freedoms and Preserving Privacy,” a comprehensive guide to the sensor technologies used to detect and identify drone threats and the legal framework that governs their use. As the threat from unauthorized and nefarious small unmanned aerial systems continues to evolve, JIATF-401 is leading the effort to deploy effective countermeasures while upholding critical privacy protections. Read more here.
DOD’s Noncompetitive Contracting Belies Message of Open Bidding, Bloomberg Government
The Pentagon increased its use of noncompetitive procurement in fiscal 2025, an uptick at odds with the agency’s messaging about the value of supplier base competition in getting cheaper, innovative products into the field faster. Read more here (subscription required).
Lawmakers Question DOD’s Growing Use of Equity Investments to Strengthen DIB, Federal News Network
Lawmakers want a detailed report on how DoD is monitoring those investments and what it plans to do with its ownership stakes. Lawmakers are pressing the Pentagon for more details about the department increasingly acquiring equity stakes in defense companies as part of the effort to strengthen the country’s defense industrial base. Read more here.
Lawmakers Seek Clarity on Trump’s Stock Buyback Order, Law360
Four Democratic lawmakers have called on President Donald Trump and U.S. Department of Defense Secretary Pete Hegseth to provide clarity on how they plan to enforce a recent executive order barring defense contractors from buying back their stock or paying shareholder dividends if they are underperforming on their contracts. Read more here (subscription required).
CMS’s Two-Pronged Approach to Crushing Fraud, Waste, Abuse, Federal News Network
Four of the six major programs run by the Centers for Medicare and Medicaid Services saw their improper payment rate increase in fiscal 2025. Kim Brandt, CMS’s chief operating officer and deputy administrator, said AI tools are helping the agency stop money from going out the door to fraudsters. Read more here.
Senator Eyes Updating NDAA with AI Use Guidance, Government Executive
Sen. Mark Kelly, D-Ariz., said he and fellow lawmakers are discussing updating the National Defense Authorization Act with a framework for how artificial intelligence systems should be used in military operations. Read more here.
A Guide to the Pentagon’s Dance with Anthropic and OpenAI, Bloomberg Government
Negotiations, threats and amended contracts have left plenty of questions. Here are some answers. Late last month, Defense Secretary Pete Hegseth delivered an ultimatum to Anthropic, the only company that had provided the Pentagon with artificial intelligence technologies for use on classified systems. Read more here (subscription required).
OpenAI’s Head of Robotics Resigns Over Company’s Pentagon Deal, Bloomberg Government
The head of OpenAI’s robotics team resigned Saturday, citing the company’s deal to deploy its artificial intelligence models within the Pentagon’s classified network as the cause. “This wasn’t an easy call,” Caitlin Kalinowski wrote in a post on X. “AI has an important role in national security. But surveillance of Americans without judicial oversight and lethal autonomy without human authorization are lines that deserved more deliberation than they got.” Read more here (subscription required).
Upcoming Presentations
WEBINAR: Legal Strategies & Capture Planning, March 20, 2026, Isaias “Cy” Alba, IV
WEBINAR: Federal Government Presentation, March 20, 2026, Meghan F. Leemon, Peter B. Ford
TRAINING: Small Business Contracting & Subcontracting, April 15, 2026, Eric Valle
WEBINAR: Tariffs in Government Contracting, April 23, 2026, Jacqueline K. Unger
WEBINAR: The Buy American Act and Trade Agreements Act, May 28, 2026, Jacqueline K. Unger
DOL Proposes to Replace the 2024 Independent Contractor Rule, Bloomberg Government
The US Department of Labor’s Wage and Hour Division on February 26 issued a notice of proposed rulemaking that would rescind the 2024 independent contractor rule and replace it with a revised framework modeled largely on the January 2021 rule. For employers that use contractor, freelance, platform-based, commission, referral-network, or other nontraditional labor models, the proposal signals a more streamlined and arguably more administrable federal standard than the Biden administration’s 2024 rule. The proposal is just that—a proposal, not a final rule—and comments are due by April 28, 2026. Read more here (subscription required). Visit this link for PilieroMazza’s coverage of this topic.
After Deep Staffing Cuts, Agencies Seek Mix of Hiring and AI Tools to Rebuild Capacity, Federal News Network
The General Services Administration is looking at AI tools to help meet its mission, after losing nearly 40% of its workforce. After deep cuts to the federal workforce under the Trump administration last year, agencies are seeking artificial intelligence tools to make their remaining employees more productive and continue to hire in a limited capacity to replenish their ranks. Read more here.
Department of Labor (DOL) News Release: DOL Selects Participants for National Effort to Expand Employment Opportunities for Individuals with Disabilities
On March 10, DOL announced that Colorado, Kansas, Kentucky, Maine, New York, Tennessee, and the District of Columbia will participate as “core states” in fiscal year 2026 in its National Expansion of Employment Opportunities Network initiative. The selection is intended to help connect government agencies with targeted, ongoing technical assistance to expand job opportunities and improve the financial well-being of Americans with mental health conditions, including those with co-occurring disabilities. Read more here.
Upcoming Presentations
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
TRAINING: Labor Rules & Regulations: Federal Market Compliance, April 15, 2026, Sarah L. Nash
TRAINING: ABCs of the SCA: Critical Path Service Contract Act Training for Government Contractors, April 28-30, 2026, Nichole D. Atallah, Sarah L. Nash
Contract Claims 101: Financial Fundamentals, Part 3, PilieroMazza Blog, Lauren Brier, Josie Farinelli, Abigail “Abby” Finan, Kelly A. Kirchgasser
We’re back for the third installment of PilieroMazza’s REAs, Claims, and Appeals Group’s “Contract Claims 101” series, introducing federal contractors to the basics of requests for equitable adjustment (REAs), claims, and appeals. This month, we’re defining the key terms underpinning the basic financial framework of government contract disputes. Financial rules can make or break a contractor’s recovery: Cost Accounting Standards (CAS) dictate how costs must be built, Contract Disputes Act (CDA) interest can influence the timing and value of settlements, and the list goes on. Contractors who understand these concepts—and who partner with counsel fluent in them—are better positioned to maximize recovery and avoid costly missteps. In this blog, we introduce federal contractors to some of the financial concepts necessary to navigate REAs, claims, and appeals, because even the strongest entitlement arguments can falter if the underlying cost principles and financial mechanics are handled incorrectly. Read more here.
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
Department of Justice (DOJ) Press Release: DOJ Releases First-Ever Corporate Enforcement Policy for All Criminal Cases
On March 10, DOJ announced that it released a Department-wide corporate enforcement policy for criminal matters, promoting uniformity, predictability, and fairness in how it pursues white-collar cases. The Department-wide Corporate Enforcement Policy (CEP) provides concrete benefits to incentivize companies to voluntarily disclose discovered misconduct, cooperate with DOJ investigations, and timely and appropriately remediate the wrongdoing. Read more here. The CEP is available here.
Treasury’s FinCEN Whistleblower Portal Presents Business Risks, Bloomberg Government
The Treasury Department’s new whistleblower portal is likely to increase enforcement risks for companies that must comply with the Bank Secrecy Act, US sanctions, and beyond. The portal, launched Feb. 13 by the Treasury’s Financial Crimes Enforcement Network, creates a centralized channel for reporting possible violations of the BSA. It’s the latest component of a cross-agency push to enhance and expand federal financial misconduct reporting and investigations. It follows President Donald Trump’s 2025 executive order targeting alleged fraud, waste, and abuse through financial institutions. Read more here (subscription required).
Judge Signals Possible Deal to Resolve US Halkbank Prosecution, Bloomberg Government
A judge in New York indicated that a deal may have been reached to resolve a long-running US criminal case against Turkish state-owned lender Turkiye Halk Bankasi AS over alleged Iran sanctions violations. US District Judge Richard Berman in Manhattan on Monday told both sides to be ready to discuss a deferred prosecution agreement and related documents at a March 11 hearing. He offered no further details. Such an agreement typically allows prosecutors to pause a criminal case, with the intention of dismissing it later if certain conditions are met. Read more here (subscription required).
Much of the Government’s Technology Isn’t Accessible, Internal Report Finds, Government Executive
Nearly 30 years after Congress put accessibility requirements for government technology into law, much of the federal government’s technology still isn’t fully meeting accessibility standards. Just over a third of the government’s most-viewed websites met legal requirements that they be accessible for people with disabilities. Read more here.
U.S. Department of Justice Office of the Inspector General Press Release: Former CRT Contractor Pleaded Guilty to Mail Fraud
On February 10, 2026, a former CRT contractor pleaded guilty to one count of mail fraud. Javan King pleaded guilty in the District of Columbia. According to the factual statement in support of the guilty plea, from in or about 2021 through in or about 2025, King misused his position as an Information Technology contractor to request that DOJ order thousands of mobile devices that the Department did not need and then sold the mobile devices for personal profit in the amount of $1,327,938.97. The OIG’s Fraud Detection Office is conducting the investigation. Read more here.
LITIGATION & DISPUTE RESOLUTION
DHS Accused of Misleading Congress on Civil Rights Oversight, Bloomberg Government
Whistleblowers who previously worked for the Department of Homeland Security’s Office for Civil Rights and Civil Liberties told Congress that the agency provided a misleading account of how it handled civil rights complaints, according to statements submitted to the Senate and House judiciary committees. Read more here (subscription required).
U.S. Judiciary Reports:
- Judicial Business of the U.S. Courts 2025. On March 10, the U.S. Judiciary released its statistical report detailing the caseload in the past year. Notably, in the regional courts of appeals, filings rose 5 percent to 41,824. Total filings in the U.S. district courts grew 6 percent to 382,692, as civil case filings increased 4 percent to 303,563. In the U.S. Courts of Appeals, filings by pro se litigants, which amounted to 50 percent of new cases, grew 9 percent to 20,878. In U.S. District Courts, filings with the United States as defendant rose 9 percent to 46,426, and filings with the United States as plaintiff grew 3 percent to 3,166. Read more here.
- Director of the Administrative Office of the U.S. Courts Annual Report 2025. On March 10, the U.S. Judiciary released its annual report detailing its review of the past year with successes and shortcomings. Serious and urgent concerns included escalation of cyberattacks, particularly on the Case Management/Electronic Case Files (CM/ECF) system and Public Access to Court Electronic Records (PACER) system. The report emphasizes that both of these systems are outdated, and the Judiciary needs to develop a centralized case management system. The report also highlights a decline/shortage in judges with a climbing number of cases. Further, the report also summarizes proposed amendments to federal rules, including Civil Rules 7.1, 26, 41, 45, and 81, Evidence Rule 609 and new Rule 707, and Appellate Rule 15. The Judiciary is also developing Artificial Intelligence policies in the judicial branch. Read more here.
DOJ Attorney Used Fabricated Quotes in Court Filing, Bloomberg Government
An assistant US attorney in North Carolina filed a response with the court that included “fabricated quotations and misstatements of case holdings” and then made “false or misleading statements” of how they got included, a magistrate judge said. “Because of the seriousness of these issues,” senior leaders from the US Attorney’s Office for the Eastern District of North Carolina must appear at a show cause hearing next week for why the civil litigator responsible shouldn’t be sanctioned and why the entire office shouldn’t be held jointly responsible, US Magistrate Judge Robert Numbers said in a March 2 order. Read more here (subscription required).
Trump DOJ Fights to Revive Big Law Orders After Reversal, Bloomberg Government
The Justice Department Friday aired its first defense of President Donald Trump’s executive orders against law firms after reversing course on a move to drop the case earlier this week. Four federal judges overstepped their authority when they struck down Trump’s orders against four prominent law firms last year, Justice lawyer Abhishek Kambli wrote in a brief filed in a federal appeals court in Washington. Read more here (subscription required).
Nintendo Files Lawsuit Seeking Refunds on Trump’s Tariffs, Bloomberg Government
Nintendo Co. filed a lawsuit in the US Court of International Trade on Friday, seeking a refund for duties it paid to the US government as a result of President Donald Trump’s Tariffs. Nintendo said the tariffs paid were “unlawfully collected” and asked that there is a “prompt refund” to the company, according to the filing dated March 6. Read more here (subscription required).
The Trump Administration’s New Cyber Strategy and Its Impact on Federal Contractors, PilieroMazza Blog, Isaias “Cy” Alba, IV, Daniel Figuenick, III
The Trump Administration recently released its “Cyber Strategy for America” (Strategy) emphasizing modernization of federal networks, streamlined “common sense” regulation, and supply chain risk reduction across several policy pillars. The strategy will guide implementation of an “unprecedented coordination” across government and the private sector to secure global dominance in cyber space. Whether these pillars can co-exist with one another is a different question. Below, PilieroMazza highlights key aspects of the strategy and its potential impact on federal contractors. Read more here.
Government Accountability Office (GAO) Report: Defense Contractor Cybersecurity: DOD Should Address External Factors that Could Impede Program Implementation
On March 12, GAO released a report detailing its review of the Department of Defense’s (DOD) implementation of the Cybersecurity Maturity Model Certification (CMMC) program. GAO’s report evaluates, among other things, the extent to which DOD has a comprehensive strategy to guide implementation. GAO reviewed DOD’s CMMC policies and planning documentation and interviewed DOD officials involved in implementing and managing this program. GAO also interviewed DOD officials and industry representatives who support the Defense Industrial Base companies to implement CMMC requirements. DOD has developed planning documents but hasn’t identified all key external factors or approaches to address them. GAO recommends that DOD document key external factors that could significantly affect the CMMC program and develop approaches to address these factors. Read more here.
CISA Delays Cyber Incident Reporting Town Halls Due to Shutdown, Federal News Network
The Cybersecurity and Infrastructure Security Agency is postponing meetings with industry on a forthcoming cyber incident reporting rule due to the ongoing Department of Homeland Security shutdown. CISA had been planning to hold the town halls starting on Monday. The shutdown is “likely” to also delay issuance of the final cyber incident reporting rule. Read more here.
AI Bills Stall in GOP States Despite Lingering Safety Concerns, Bloomberg Government
Republican-led states are failing to advance artificial intelligence legislation as the White House presses for a national standard, even as some GOP lawmakers warn that guardrails are needed to address the risks posed by the emerging technology. Read more here (subscription required).
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