Defense Industry

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

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

Updated as of April 30, 2025

Over the first one-hundred days of the second Trump Administration, Covington’s Government Contracts Practice has tracked the latest developments related to recent executive actions most relevant to federal contractors and grantees.  This April edition of our key developments timeline provides a targeted overview of…

Continue Reading Timeline of Key Developments Related to Recent Executive Actions: April Edition

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

On April 1, the Office of Strategic Capital (OSC) announced that it received more than 200 applications, totaling over $8.9 billion in financing requests, across 38 states for the inaugural solicitation under OSC’s Domestic Manufacturing Loan Program.  As covered in a prior post, under the Notice of Funding Availability (NOFA) released last fall, OSC plans to loan up to $984 million to eligible companies to expand the U.S. industrial base, with individual loans ranging between $10 million to $150 million.  These OSC loans will support advanced manufacturing, cybersecurity, decision science, edge computing, mesh networks, microelectronics, solar, and quantum computing technologies, and eligible investments must have both a defense and a commercial application.   

Continue Reading DoD’s Office of Strategic Capital Reports Significant Interest in Domestic Manufacturing Loan Program

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 March 26, 2025

During his first eight weeks 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 March 19, 2025

On Tuesday, March 4, 2025, President Trump addressed a joint session of Congress, and highlighted many of the actions his administration has taken during his first six weeks in office.  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 document provides a high-level summary of recent events and is not exhaustive. In addition, this document 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 March 12, 2025

On Tuesday, March 4, 2025, President Trump addressed a joint session of Congress, and highlighted many of the actions his administration has taken during his first six weeks in office.  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 post provides a high-level summary of recent events and is not exhaustive. In addition, this document 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 March 5, 2025

On behalf of the Professional Services Council (PSC), this past week Covington filed an amicus brief in the U.S. Supreme Court in support of the petitioner in The GEO Group, Inc. v. Menocal (No. 24-758). The brief urges the Court to grant certiorari and, ultimately, to hold that government contractors are entitled to immediately appeal a district court’s denial of derivative sovereign immunity under the collateral order doctrine.

Continue Reading Covington Submits Supreme Court Amicus Curiae Brief Addressing Derivative Sovereign Immunity for Government Contractors