On May 29, 2026, the Office of Management and Budget (“OMB”), together with several other federal agencies, published a proposed rule that would fundamentally change many aspects of the regulations in 2 CFR Part 200 governing federal financial assistance awards, including grants, cooperative agreements, loans, and loan guarantees.  The comment period will be underway until July 13.

The 412 page proposed rule states that it is aimed at increasing transparency, accountability, and oversight in federal financial assistance.  It provides examples of “the types of wasteful spending” that it is meant to target, including recipients “potentially misus[ing] funds to provide services for illegal immigrants.”

While the proposed rule contains numerous changes, this post highlights some of the most notable.

Continue Reading Proposed Rule Would Fundamentally Impact Federal Grant and Financial Assistance Framework

Over one year ago, on May 2, 2025, the FAR Council took the first concrete step in the administration’s “Revolutionary FAR Overhaul” (“RFO”) initiative by issuing the initial round of rolling model deviation guidance—a deliberate move to translate reform of the Federal Acquisition Regulation (“FAR”) from an abstract policy goal into acquisition text.  That moment marked the beginning of a new implementation reality: rather than waiting for a single, comprehensive rulemaking, the government began operationalizing the overhaul in increments, part by part, through deviations.  Now, a year later, the question for contractors is no longer whether the overhaul is “coming,” but how it is being implemented across agencies and systems.  This is therefore a good time to take stock of where implementation stands, where friction is emerging, and what sophisticated contractors can do to stay ahead of the curve.  For additional information, our prior coverage of the RFO roll-out can be found here and here.

Continue Reading From Paper Reform to Practice: How Agencies Are Actually Implementing the Revolutionary FAR Overhaul

On April 29, 2026, Secretary of War Pete Hegseth told the House Armed Services Committee that the Pentagon will “shortly announce a sub-unified command of autonomous warfare.”  The announcement came as the Department of War (DoW) unveiled its fiscal year (FY) 2027 budget request, which proposes approximately $54 billion for the Defense Autonomous Warfare Group (DAWG)—a dramatic increase from the roughly $226 million the DAWG received previously.  When all DoW drone and counter-drone related budget lines in the FY 2027 budget request are aggregated, the total approaches $74 billion—an amount Pentagon officials have described as the largest investment in such technologies in U.S. history.  

Beyond the headline numbers, Secretary Hegseth’s reference to a “sub-unified command” is institutionally significant.  It raises fundamental questions about how the DoW intends to organize autonomous warfare inside the joint force and warrants a closer look at what a sub-unified command actually is.

Continue Reading The Pentagon’s New Sub-Unified Command for Autonomous Warfare:  What It Means and Where It Might Land

On April 30, 2026, President Trump issued an Executive Order (EO) titled, “Promoting Efficiency, Accountability, and Performance in Federal Contracting.”  This EO directs agencies to make fixed-price contracts the default form of contracting, and requires agency officials to execute written justifications to use other forms of contracting.  Of particular note for large contractors, the EO directs that, “[w]ithin 90 days of the date of this order, each agency head shall review and, to the maximum extent practicable and consistent with law, seek to modify, restructure, or renegotiate its 10 largest non-fixed-price contracts by dollar value . . . to facilitate use of fixed prices and performance-based incentives for contract deliverables to the maximum extent practicable.”

Continue Reading The New Executive Order on “Promoting Efficiency, Accountability, and Performance in Federal Contracting”: What Federal Contractors Need to Know  

On April 20, 2026, one week after President Trump signed the Small Business Innovation and Economic Security Act (Public Law 119-83) into law, the Department of War (“DoW”) issued a press release announcing that it was “immediately advancing” a “redesigned and more focused initiative to accelerate the delivery of advanced capabilities to the warfighter.”  As we covered last month, the Small Business Innovation and Economic Security Act reauthorizes the Small Business Innovation Research and Small Business Technology Transfer (“SBIR/STTR”) programs through September 30, 2031, ending a nearly six-month lapse that froze new SBIR/STTR solicitations and awards across federal agencies.

The DoW’s announcement signals that the Department intends to be the first mover in implementing the reauthorized SBIR/STTR programs.  The announcement also introduces a new initiative, the Accelerated Research for Transition (“ART”) Program, that warrants close attention from the defense small business community.

Continue Reading SBIR/STTR Is Back and the Department of War Is Wasting No Time

As we previously covered, on March 26, 2026, President Trump issued Executive Order (EO) 14398, “Addressing DEI Discrimination by Federal Contractors,” to address “racially discriminatory DEI activities” in federal contracting.  Among other things, EO 14398 directed the FAR Council to issue deviation and interim guidance within 60 days to implement the new contract clause set forth in Section 3 of the EO.  On April 20, the FAR Council issued those model deviations[1] ahead of schedule, along with corresponding implementation guidance. 

Continue Reading Revolutionary FAR Overhaul Incorporates New “Addressing DEI Discrimination” Executive Order Provisions

The Armed Services Board of Contract Appeals’ (ASBCA) decision in Lockheed Martin Aeronautics Co., ASBCA No. 63621, reinforces a critical principle for government contractors:  contract performance requirements operate independently of cost accounting classifications. Contractors cannot avoid substantive FAR and DFARS obligations—here, U.S.-flag transportation requirements—by treating costs as

Continue Reading Indirect Doesn’t Mean Exempt: ASBCA Rejects Cross‑Motions Over U.S.-Flag Transportation Costs

On March 26, 2026, President Trump issued an Executive Order (EO) titled “Addressing DEI Discrimination by Federal Contractors,” the latest in a series of Executive Orders and related actions by the Administration targeting what it views as unlawful Diversity, Equity, and Inclusion (“DEI”) related practices.  Most notable about

Continue Reading New “Addressing DEI Discrimination” Executive Order: What Federal Contractors Need to Know

On March 17, 2026, the Department of Energy (“DOE”) issued a Request for Application (“RFA”) under the Genesis Mission, a White House-led AI initiative announced in November 2025.  The RFA, with $293.76 million in anticipated total funding, solicits project proposals for 21 areas ranging from advanced manufacturing and industrial productivity to energy and nuclear physics.  Applications for Phase I and letters of intent for Phase II are both due April 28, 2026.  This blog post reviews the development of the Genesis Mission since last year and summarizes the key elements of the current funding opportunity.

Continue Reading DOE Announces a New Funding Opportunity under the Genesis Mission  

On March 13, 2026, President Trump issued an Executive Order (EO) titled “Adjusting Certain Delegations Under the Defense Production Act.”  As we have covered in prior blog posts, the Defense Production Act (DPA) has traditionally been considered the primary federal means to manage and support defense production. 

Continue Reading “Adjusting Certain Delegations”:  New Executive Order Aims to Streamline and Clarify Delegated Authorities Under the Defense Production Act