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Administration Seeks Delay in Extending Government Procurement Ban on Certain Chinese Telecommunications Equipment to Federal Contractors and Grant Recipients

Client Alert | 1 min read | 06.12.19

Section 889 of the NDAA for FY 2019 prohibits executive agencies from (1) procuring certain technologies from Huawei and other identified Chinese technology companies; (2) doing business with contractors that use those companies’ products as a substantial component of their systems; and (3) using grant and loan funds to procure technology from those same sources. By letter dated June 4, 2019, the Office of Management and Budget’s (OMB) Acting Director submitted proposed legislation to Congress to delay the bans described at (2) and (3) above, to modify the ban in (3) to apply to any federal grant or loan recipient’s use of the specified Chinese technology, and to specify an extended rulemaking process – including public meetings – to solicit input and potential mitigation solutions from affected parties. The first such public meeting has been scheduled for July 19, 2019. In a written explanation accompanying the proposed legislation, OMB acknowledges the practical challenges posed by the current schedule and the potential risk of a “dramatic reduction in the available industrial base,” either due to the cost of the regulatory burdens or because entities will decide that the commercial relationships are more valuable than complying with the Government’s ban applicable to government contractors. In the interim, Huawei has sought expedited handling of its lawsuit (Huawei Technologies USA, Inc. v, United States, E.D.Tx 4:19-cv-0159) challenging this targeted procurement ban.

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Client Alert | 3 min read | 11.21.25

A Sign of What’s to Come? Court Dismisses FCA Retaliation Complaint Based on Alleged Discriminatory Use of Federal Funding

On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future....