Nonprofit Organizations

Here are five tips to consider when preparing strategic legal communications for company
stakeholders, employees, and the public in the wake of a crisis.

On January 21, 2025, President Trump issued a widely expected executive order (EO), Ending Illegal Discrimination and Restoring Merit-Based Opportunity, targeting affirmative action and diversity, equity, and inclusion (DEI) initiatives in the federal government.

The EO creates new compliance obligations for all government contractors and grant recipients and will lead to new Federal Acquisition Regulation (FAR) rules, eliminating such things as mandatory affirmative action plans and adding a new mandatory contract certification.

Any contractor or grant recipient that currently maintains a DEI program should especially take note, as the EO directly links the maintenance of future DEI programs to False Claims Act (FCA) liability.

On January 29, the U.S. Office of Management and Budget (OMB) rescinded M-25-13, which it had issued two days earlier, and which required federal agencies to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance."

Days after it was issued on January 27, one federal judge administratively stayed a portion of the memo before the OMB rescinded it altogether. A White House press secretary subsequently explained that the "freeze" was, in fact, still in place, and another judge indicated he intends to issue an injunction soon.

While much remains unclear, there are basic parameters and next steps every FFA recipient should consider.