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Equality For All - OMB Instructs Agencies To Ignore GAO And Give Equal Consideration To Three SBA Programs

Client Alert | less than 1 min read | 07.23.09

On July 10, 2009, OMB instructed agencies to continue to adhere to the SBA's "parity" regulations despite two recent GAO decisions-Mission Critical Solutions, 2009 CPD ¶ 93, and Int'l Program Group, Inc., 2008 CPD ¶ 172-that required agencies to prioritize Historically Underutilized Business Zone ("HUBZone") small businesses over 8(a) Program participants and Service Disabled Veteran Owned Small Businesses in satisfying the agencies' acquisition requirements. OMB explained that the GAO decisions were not binding and instead instructed agencies to consider multiple small business programs pursuant to their existing contracting practices and the SBA's "parity" policies.

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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....

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