New Limits on Contractor Compensation Costs
Client Alert | less than 1 min read | 01.06.14
Two statutes passed by Congress in the waning days of 2013, the FY 2014 National Defense Authorization Act (NDAA) and the Bipartisan Budget Act (BBA), reduced the allowable compensation costs for employees of government contractors to $625,000 and $487,000, respectively, and both statutes were signed by the President on December 26. Although Congress passed the BBA with the lower cap before the NDAA, the President signed the BBA after he signed the NDAA and it seems likely that the lower cap in the BBA will be applied to new cost-reimbursement contracts awarded 180 days or more after the statute was signed, as provided in the BBA.
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Client Alert | 4 min read | 02.20.26
SCOTUS Holds IEEPA Tariffs Unlawful
On February 20, 2026, the Supreme Court issued a pivotal ruling in Trump v. V.O.S. Selections, negating the President’s ability to impose tariffs under IEEPA. The case stemmed from President Trump’s invocation of IEEPA to levy tariffs on imports from Canada, Mexico, China, and other countries, citing national emergencies. Challengers argued—and the Court agreed—that IEEPA does not delegate tariff authority to the President. The power to tariff is vested in Congress by the Constitution and cannot be delegated to the President absent express authority from Congress.
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