After an immediate, severe backlash against OMB’s January 27 memo ordering a freeze on almost all federal financial assistance, as well as legal action that led to a January 28 temporary restraining order issued by the D.C. District Court minutes before the freeze was to go into effect, the Trump administration has now rescinded that memo. Continue Reading Trump Administration Rescinds Freeze on Federal Financial Assistance (Or Does It)?
Richard Arnholt
Richard Arnholt advises companies, large and small, on the complex rules and regulations applicable to grants and contracts from federal and state governmental entities. In an era of increased budgetary pressures for contractors, Richard focuses his practice on providing practical business and legal guidance to help clients efficiently navigate the minefield of government procurement and grant regulations.
Key Changes to Federal Contract and Grant Rules: What Government Contractors and Grant Recipients Need to Know About Trump’s First Week
UPDATE (January 29, 2026): On January 28, Law360 reported that the D.C. District Court issued a temporary restraining order enjoining OMB’s directive to freeze federal financial assistance. We will closely monitor and report on further developments.
The first seven days of the Trump administration have brought new meaning to the saying that the only constant in government contracting is change. Multiple executive actions promise to be just the start of what is expected to be a period of significant change to the rules governing federal contracts and grants. This summary provides government contractors, grant recipients, and compliance professionals with an overview of significant changes to federal contract and grant rules, with more to come over the coming weeks. Continue Reading Key Changes to Federal Contract and Grant Rules: What Government Contractors and Grant Recipients Need to Know About Trump’s First Week
President Trump Revokes Executive Order 11246
“Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (Order) is one of President Trump’s most recent executive orders. The Order was signed on January 21, 2025. The Order revoked Executive Order EO11246 (EO11246), along with several other previously enacted executive orders aimed at promoting diversity, equity and inclusion (DEI) in the workplace. EO11246 has been in…
Bid Protest Minute: GAO Decision Clarifies SAM Registration Rule
On January 8, the Government Accountability Office (GAO) sustained a pre-award bid protest filed by Bass, Berry & Sims PLC (Bass Berry), which challenged the Federal Law Enforcement Training Centers’ (FLETC or the Agency) determination to exclude the protester, UNICA-BPA JV, LLC (UNICA), from a competition when UNICA had an active SAM registration at the time of final proposal revision (FPR), but not at the time of its initial proposal submission. The decision clarifies that FAR 52.204-7, System for Award Management applies to the proposal that would bind the offeror to perform the resultant contract.Continue Reading Bid Protest Minute: GAO Decision Clarifies SAM Registration Rule
Athira Pharma Inc. Agrees to Settle False Claims Act Allegations
On January 6, the Department of Justice (DOJ) announced that Athira Pharma Inc., a Washington-based biopharmaceutical company, agreed to pay over $4 million to settle allegations it violated the False Claims Act (FCA). The DOJ alleges Athira failed to report allegations of research misconduct in its grant applications, award progress reports, and assurances. The settlement serves as a reminder to companies performing on grants that the Department of Health and Human Services (HHS) takes allegations of research misconduct seriously and grantees must closely adhere to regulatory requirements related to disclosing such allegations.Continue Reading Athira Pharma Inc. Agrees to Settle False Claims Act Allegations
Bid Protest Minute: COs Must Account for Corporate Restructuring When Assessing Qualifications
On November 13, the Government Accountability Office (GAO) sustained a protest by DecisionPoint Corporation concluding that when the Air Force determined EmeSec, a wholly owned subsidiary of DecisionPoint, was ineligible for award for not having the correct certification, it improperly ignored the effect of a novation. The GAO reasoned that the merger between EmeSec and DecisionPoint made DecisionPoint the new prime and therefore, DecisionPoint’s proposal, which included the required certification, should have been considered. The decision underscores the need for contractors, as well as agencies, to carefully consider the impact of mergers and acquisitions on eligibility for pending awards, an issue we have previously written about.Continue Reading Bid Protest Minute: COs Must Account for Corporate Restructuring When Assessing Qualifications
Ninth Circuit Deflates Contractor Minimum Wage Mandate
On November 5, the Court of Appeals for the Ninth Circuit held that the president lacks the authority under the Federal Property and Administrative Services Act (FPASA or Act) to impose a $15 minimum wage on federal contractors and remanded the case to the district court to reconsider in light of the Ninth Circuit’s decision. For decades administrations have used FPASA to implement social policy under the guise of government procurement rules, and courts have typically upheld these actions.Continue Reading Ninth Circuit Deflates Contractor Minimum Wage Mandate
DoD Announces Cybersecurity Maturity Model Certification 2.0 Final Rule (Finally!)
After numerous fits and starts, on October 14, the Department of Defense (DoD) published a final rule implementing the Cybersecurity Maturity Model Certification (CMMC) program. Borne from documented deficiencies in the implementation of DoD-mandated security controls throughout the defense supply chain, the new CMMC program is a verification requirement to ensure contractors are complying with cybersecurity requirements at FAR 52.204-21, DFARS 252.204-7012, and DFARS 252.204-7020. Importantly, beginning in 2025 DoD RFPs will mandate the CMMC level contractors must meet in order to be eligible for award.Continue Reading DoD Announces Cybersecurity Maturity Model Certification 2.0 Final Rule (Finally!)
HHS-OIG Set To Intensify Scrutiny of Grants and Contract Compliance: How to Prepare
As we detailed in a previous blog, on October 3, the Department of Health and Human Services (HHS) Office of Inspector General (OIG) published a strategic plan to “safeguard[] the integrity of HHS grants and contracts.” The plan comes after the HHS-OIG found “gaps in HHS oversight of grants and contracts—gaps that allow HHS funds to be misspent, programs to fall short of their promise, and people to be put at risk.”Continue Reading HHS-OIG Set To Intensify Scrutiny of Grants and Contract Compliance: How to Prepare
HHS’ Office of Inspector General Announces New Strategic Plan: What Contractors Should Know
On October 3, the Department of Health and Human Services (HHS) Office of Inspector General (OIG) published a strategic plan for improving oversight of public grants and contracts “to strengthen compliance with HHS award requirements; promote award practices that achieve program outcomes; and mitigate fraud, waste, abuse, and mismanagement.” This comes as grant fraud related to awards by HHS and other agencies routinely makes the news. For example, in July Janet Mello was sentenced to 15 years in prison for stealing over $100 million from a U.S. Department of Agriculture (USDA)/Department of Defense (DoD) grant program aimed at helping military families. Similarly, fraud stemming from the Paycheck Protection Act has been dubbed the “biggest fraud in a generation.”Continue Reading HHS’ Office of Inspector General Announces New Strategic Plan: What Contractors Should Know