Insights

In 2025, the U.S. Government’s policy statements and Executive Orders have had far-reaching impacts for government contractors and grant recipients. Although terminations, stop work orders, and de-scopes have affected private companies, non-profits, and universities doing business across multiple agencies, the U.S. Government’s policies relating to the U.S. Agency for International Development (USAID) has caused particular confusion and uncertainty relating to performance, compliance, and contractual procedure. Key questions have included the potential impacts of official and less formal communications from the U.S. Government, procedural issues arising from the move of certain functions to the U.S. Department of State, and the effect of various pending litigations. As businesses and organizations plan for 2026, the importance of preserving their rights and maximizing potential recovery opportunities remains paramount.

In the first quarter of 2025, the U.S. Government has issued a myriad of policy statements and Executive Orders with far-reaching impacts for government contractors and grant recipients. Many federal government agencies have directed contractors and grant recipients to stop work, de-scope contracts, and issued termination notices. The impacts of these policy directives and their implementation are significant – for private companies, non-profits, and universities. Our discussion will focus on the steps that contractors and grant recipients can take now, to preserve your rights and protect the bottom line.

Over the past two weeks, the U.S. Government has issued policy statements and Executive Orders with far-reaching impacts for government contractors and grant recipients. Some federal government agencies have already directed contractors and grant recipients to stop work, while others have already begun to de-scope contracts, and issue termination notices. The U.S. Government has also announced new tariffs on goods coming from Canada, Mexico, and China. The impacts of these policy directives and their implementation are significant – for private companies, non-profits, and universities.