President Trump has issued two new Executive Orders (“EOs”) that seek to reshape federal procurement. The much anticipated “Restoring Common Sense To Federal Procurement” EO (the “FAR Reform EO”) seeks to “create the most agile, effective, and efficient procurement system possible” by revising the Federal Acquisition Regulation (“FAR”)
Continue Reading Trump Administration Issues Two Executive Orders Seeking To Remake Federal ProcurementMarch 2025 AI Developments Under the Trump Administration
This is part of an ongoing series of Covington blogs on the AI policies, executive orders, and other actions of the Trump Administration. This blog describes AI actions taken by the Trump Administration in March 2025, and prior articles in this series are available here.
White House Receives Public…
Continue Reading March 2025 AI Developments Under the Trump AdministrationDoD is Shrinking its Civilian Workforce: What Contractors Should Know Now
Since January 20, the Trump administration has taken numerous executive actions that impact federal government contractors and grant recipients. In just a single day last week, the Trump administration issued a series of EOs and presidential memoranda that, among other things, seek to reform the defense acquisition system, bolster the U.S. maritime industry, and streamline foreign military sales. The potential impact of these changes to Department of Defense (“DoD”) procurement policy are relatively self-evident.
At the same time, the Trump administration has taken various steps to reorganize and reduce the federal workforce, including significant changes to the DoD civilian workforce. The potential effects of these personnel policies are less obvious but may be equally meaningful for defense contractors. This blog focuses on one such executive action, Executive Order 14210 (titled Implementing the President’s ‘‘Department of Government Efficiency’’ Workforce Optimization Initiative) and its potential implications for the defense industrial base.Continue Reading DoD is Shrinking its Civilian Workforce: What Contractors Should Know Now
Trump Administration Issues Executive Order Aimed At Modernizing Defense Acquisitions And Spurring Innovation
On April 9, 2025, President Trump issued an Executive Order (“EO”), “Modernizing Defense Acquisitions and Spurring Innovation In the Defense Industrial Base,” that may have significant implications for federal government contractors doing business with the Department of Defense (“DoD”), and particularly those with touchpoints to Major Defense Acquisition Programs (“MDAPs”).Continue Reading Trump Administration Issues Executive Order Aimed At Modernizing Defense Acquisitions And Spurring Innovation
Renewed Effort to Support Commercial Shipbuilding Capacity and the Domestic Maritime Industry
On April 9th, President Trump issued the Restoring America’s Maritime Dominance Executive Order (“Maritime EO”), which declares that “[i]t is the policy of the United States to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity.” The Maritime EO aims to improve the nation’s commercial shipbuilding capacity and bolster the maritime workforce. The four corners of the Maritime EO primarily take two key steps—(1) directing the National Security Adviser to prepare a Maritime Action Plan (“MAP”) to revitalize domestic maritime industries and (2) imposing a series of trade-related measures to bolster domestic shipping. The Fact Sheet accompanying the Maritime EO further notes that President Trump has established a new Office of Maritime and Industrial Capacity at the National Security Council, which presumably will help coordinate implementation of the Maritime EO.
While much remains to be seen on how the Maritime EO will be implemented, it is clear that the Trump administration intends to take a multifaceted approach to supporting the domestic maritime industry. In this regard, the EO tracks and builds upon the SHIPS for America Act of 2024 (“SHIPS Act”), proposed legislation that garnered broad bipartisan support last year after its initial introduction in Congress. The SHIPS Act was co-sponsored by then-Rep. Michael Waltz, who as the current National Security Adviser has principal responsibility for managing the development of the MAP that forms the backbone for the EO and its policy objectives. Especially in light of the legislative momentum in this area, we expect that this initial action and any subsequent executive and legislative actions will be of significant interest to a wide range of U.S. businesses, including ship builders and their suppliers.Continue Reading Renewed Effort to Support Commercial Shipbuilding Capacity and the Domestic Maritime Industry
New Executive Actions Address the Defense Acquisition System, U.S. Maritime Industries, Foreign Military Sales, and “Unlawful” Regulations
President Trump issued a series of executive orders (“EOs”) and presidential memoranda on Wednesday, April 9, that could impact government contractors across a broad range of industries. Among other initiatives, these executive actions seek to reform the defense acquisition system, reinvigorate the U.S. maritime industry, and streamline foreign military sales. The actions also reflect President Trump’s goal of catalyzing innovation and economic growth by reducing regulatory burdens, both in general and in the energy industry specifically.
We briefly summarize below the six April 9 executive actions most likely to impact government contractors.Continue Reading New Executive Actions Address the Defense Acquisition System, U.S. Maritime Industries, Foreign Military Sales, and “Unlawful” Regulations
New Executive Order Targets Reforms to Foreign Military Sales
On April 9th, President Trump signed an Executive Order titled “Reforming Foreign Defense Sales To Improve Speed And Accountability” (“the FMS EO”). The FMS EO directs the Departments of Defense and State to reform the foreign defense sales system with the goal of “simultaneously strengthen[ing] the security capabilities of our allies and invigorat[ing] our own defense industrial base.”
The EO’s policy goals likely will receive bi-partisan support, as both the Biden administration and the first Trump administration oversaw record transfers of U.S. defense articles and services to foreign allies. Indeed, the FMS EO comes just a few months after the Department of State reported that the final year of the Biden administration saw the “highest ever annual total of sales and assistance provided to our allies and partners,” with a total value of $117.9 billion in sales under the Foreign Military Sales (FMS) program, a 45.7% increase from FY 2023. Moreover, many of the policy goals align generally with recommendations the House Foreign Affairs Committee’s TIGER Task Force issued last year.
On the other hand, the FMS EO would reduce Congressional review and export restrictions on the transfer of certain sensitive defense articles, expand the ability of foreign allies to procure defense items directly from U.S. contractors through direct commercial contracts, and place a new emphasis on cost and burden-sharing by allies. These measures are more likely to encounter resistance. Continue Reading New Executive Order Targets Reforms to Foreign Military Sales
Timeline of Key Developments Related to Recent Executive Actions: April Edition
As the second Trump Administration enters its third month, Covington’s Government Contracts Practice is continuing to track the latest developments related to recent executive actions. This April edition of our key developments timeline has been condensed to provide a targeted overview of the developments this month most relevant to contractors. For a detailed version of the timeline as of April 2, 2025, including background on some of the developments discussed below, please see our post here.
This timeline highlights key developments pertaining to recent executive orders (“EOs”) and other executive actions issued by the second Trump administration. It focuses on issues most relevant to federal contractors and grant recipients, and is divided into five topics: (1) Federal Funding; (2) DEI and Gender; (3) Energy and Environment; (4) Trade and Foreign Aid; and (5) DOGE. Covington’s Government Contracts Practice is continuing to track these and other developments and will plan to periodically update this timeline.
This timeline provides a high-level summary of recent events and is not exhaustive. In addition, this timeline was last updated on April 17, 2025. To the extent you may have questions regarding any of the developments discussed below — or other matters — please reach out to a member of Covington’s Government Contracts Practice.Continue Reading Timeline of Key Developments Related to Recent Executive Actions: April Edition
OMB Issues First Trump 2.0-Era Requirements for AI Use and Procurement by Federal Agencies
On April 3, the White House Office of Management and Budget (“OMB”) released two memoranda with AI guidance and requirements for federal agencies, Memorandum M-25-21 on Accelerating Federal Use of AI through Innovation, Governance, and Public Trust (“OMB AI Use Memo“) and Memorandum M-25-22 on Driving Efficient Acquisition of Artificial…
Continue Reading OMB Issues First Trump 2.0-Era Requirements for AI Use and Procurement by Federal AgenciesTimeline of Key Developments Related to Recent Executive Actions as of April 2, 2025
During his first two months in office, President Trump has taken numerous executive actions likely to impact federal government contractors and grant recipients. This timeline highlights key developments pertaining to recent executive orders (“EOs”) and other executive actions issued by the second Trump administration. It focuses on issues most relevant to federal contractors and grant recipients, and is divided into five topics: (1) Federal Funding; (2) DEI and Gender; (3) Energy and Environment; (4) Trade and Foreign Aid; and (5) DOGE and Federal Workforce. Covington’s Government Contracts Practice is continuing to track these and other developments and will plan to periodically update this timeline.
This timeline provides a high-level summary of recent events and is not exhaustive. In addition, this timeline was last updated on the date provided above. To the extent you may have questions regarding any of the developments discussed below — or other matters — please reach out to a member of Covington’s Government Contracts Practice.Continue Reading Timeline of Key Developments Related to Recent Executive Actions as of April 2, 2025