Welcome to Pillsbury’s Regulatory Playbook, where you’ll find news and insights on the regulatory trends that are driving markets and shaping businesses. Here, Pillsbury’s market-leading regulatory group illuminates critical developments at the intersection of law and policy. If you need to know what’s happening, why it’s happening and how to respond, consult the Playbook.
Trending Issues
FCPA Enforcement After the Pause: What Early Cases Reveal12.23.2025
The U.S. Department of Justice (DOJ) has now spent several months enforcing the Foreign Corrupt Practices Act (FCPA) under the revised framework adopted after the February 10, 2025, pause mandated by Executive Order 14209. In the period following the pause, DOJ has begun to translate that framework into concrete enforcement activity, with the Smartmatic corporate indictment and the Comcel/Millicom deferred prosecution agreement (DPA) emerging as the two most significant post-pause actions to date. Post-pause directives have seemed to refocus DOJ’s attention on corporate actors, particularly those operating in sectors that intersect with national security and critical infrastructure priorities, and where companies are now expected to identify and self-disclose potential issues far earlier to receive meaningful consideration under the Department’s evolving enforcement policies. For companies, these developments show that DOJ’s new approach has immediate consequences, so it is important to reevaluate FCPA risks now and make sure compliance programs meet the Department’s changing expectations.
Government Accountability Office Publishes Fiscal Year 2025 Bid Protest Statistics
12.22.2025
On December 12, 2025, the Government Accountability Office (GAO) published its Bid Protest Annual Report to Congress for Fiscal Year 2025. The GAO’s report, which is mandated by the Competition in Contracting Act, lists its key statistics for FY 2025 bid protest activity. The report also includes a chart providing similar bid protest statistics for fiscal years 2021–2025. This five-year snapshot provides some valuable insight into current bid protest trends and developments at the GAO.
DOJ–DHS Trade Fraud Task Force Debuts with Sweeping China-Related Enforcement Actions
12.22.2025
On December 18, the U.S. Department of Justice (DOJ) and U.S. Department of Homeland Security (DHS) announced the first set of enforcement actions involving the newly formed DOJ–DHS Trade Fraud Task Force. Collectively, the settlements underscore the Task Force’s early focus on alleged customs, tariff and trade fraud involving imports from China.
California’s Aggressive State Antitrust Enforcement Efforts Continue to Grow
12.22.2025
Heightened Antitrust Enforcement Focus
California, with the fourth largest economy in the world, continues to ramp up antitrust enforcement through recent cases, a new law establishing higher criminal and civil penalties, a new algorithmic pricing law and related public statements. Companies doing business in California should take note of this trend and consider updating compliance programs and mitigating antitrust risk.
OFPP Solicits Comments on the Revolutionary FAR Overhaul
12.19.2025
Pursuant to Executive Order 14275 – Restoring Common Sense to Federal Procurement, the Office of Federal Procurement Policy (OFPP) and the FAR Council have competed the draft rewrite of the Federal Acquisition Regulation (FAR), known as the Revolutionary FAR Overhaul (RFO). The goal of the RFO is to remove regulatory requirements that are not statutorily based, as well as to create faster acquisitions, greater competition and better results. Many federal agencies have already implemented parts of the RFO through deviations. OFPP is now using its IdeaScale crowdsourcing community to receive input from federal acquisition professionals, contractors, industry associations, academia and members of the public to guide the formal rulemaking process, which is expected to continue into early 2026.
New Executive Order Seeks to Ensure a National Policy Framework for Artificial Intelligence
12.19.2025
Background: Federal AI Policy and State AI Laws
Earlier this year, President Trump revoked Executive Order 14110, “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” issued under the prior administration, and replaced it with Executive Order 14179 (the “EO”), “Removing Barriers to American Leadership in Artificial Intelligence.” EO 14179 directs agencies to identify and roll back regulations that could act as barriers to artificial intelligence (AI) innovation and calls for the development of a national AI Action Plan focused on competitiveness and reduced regulatory burdens.
CISA and Partners Publish “Secure Integration of AI in OT” Framework
12.17.2025
On December 3, 2025, CISA, the NSA, the FBI and several international cyber authorities released Principles for the Secure Integration of Artificial Intelligence in Operational Technology, a joint framework aimed at helping critical infrastructure operators deploy AI safely and responsibly.
U.S. DOJ Rolls Back Disparate-Impact Rule
12.17.2025
On December 9, 2025, U.S. DOJ issued a rule (the “Rule”) rescinding a portion of its Title VI regulations to eliminate disparate-impact liability, with immediate effect. Title VI prohibits discrimination based on race, color, or national origin in any program or activity receiving federal financial assistance. The Title VI regulations identify specific discriminatory actions that are prohibited. 28 CFR 42.104. These regulations prohibited practices that had the effect of subjecting individuals to discrimination because of their race, color, or national origin, even in the absence of discriminatory intent. In other words, under the prior regulations, DOJ could claim that facially neutral programs or policies were discriminatory if they had a disproportionate and adverse impact on protected groups compared to individuals of a different race, color, or national origin. A program facing allegations of disparate impact based on outcomes data could defend against liability by proffering a substantial legitimate justification for the practice. A finding of disparate- impact liability would then be made only by identifying an equally effective alternative practice that would result in a lesser disproportionate effect on the individuals in the protected class, or by establishing that the purportedly legitimate practice was a pretext for intentional discrimination. The preamble to the Rule states that although it does not preclude the use of data showing statistical disparities to prove intentional discrimination, using statistical data in such a way “materially differs from using it to impose liability for an unintentional disparate impact.”
Year-End Tax Loss Harvesting Strategies Reviewed by IRS and Tax Court
12.16.2025
Tax loss harvesting is a tool employed by both corporate and non-corporate taxpayers to mitigate the tax burden imposed on recognized gains. While certain strategies are easy to employ (sell loss positions), other transactions involve substantial tax planning. Complex strategies were the subject of IRS and Tax Court guidance this month. Mark Leeds, of the New York office of Pillsbury, analyzes these developments in the linked White Paper. Happy holidays to our clients and friends.
DoD Bid Protests Under Pressure Again: Key Takeaways from Proposed Section 875 of the FY2026 NDAA
12.11.2025
For more than a decade, Congress has questioned whether the number of bid protests filed with the Government Accountability Office (GAO) has caused unnecessary delay and expense in U.S. Department of Defense (DoD) procurements, often calling for reforms to limit their impact. Section 875 of the proposed FY2026 NDAA represents the latest effort by Congress in that regard and what some may call yet another attempt to curtail a vital oversight mechanism.
Permissionless Innovation: The FCC’s Conceptual Shift for Space and Earth Station Licensing in the United States
12.09.2025
In an effort to more effectively keep pace with and reduce the burdens on the rapidly evolving and expanding commercial space sector, the Federal Communications Commission (Commission) unanimously adopted a Notice of Proposed Rulemaking (NPRM) proposing a comprehensive restructuring and reform of its long-standing space and earth station licensing rules (Part 25). With its breadth of scope and potential impacts across the space ecosystem, the NPRM also serves to highlight the key role the Commission will play in advancing the Trump administration’s broader objective to enhance American greatness in space and facilitate U.S. leadership and innovation.
Developments in Nonprofit and Association Law 2024–2025
12.08.2025
The following is a review of notable cases and regulatory developments for associations and other nonprofit organizations at the federal and state levels during the last year, organized by the following categories:
This review does not cover most challenges to Trump Administration actions, which are numerous and continue to evolve. You can learn more about those matters and Pillsbury’s assessment of them through our Trump 2.0 Resource Center.
12.03.2025
The recent decision by the U.S. Court of Federal Claims (COFC) in Marathon Targets serves as a cautionary tale illustrating the harsh consequences contractors may face when they mishandle protected source selection information. (See Marathon Targets, Inc. v. United States, No. 25-121 (Fed. Cl. Nov. 10, 2025; reissued Nov. 21, 2025).) The post-award protest arose from a nearly $200 million U.S. Marine Corps procurement for Trackless Mobile Infantry Target system support services. After notifying offerors of its decision to make award to MVP Robotics, the contracting officer inadvertently emailed Marathon’s president a file containing protected source selection information from the awardee’s technical evaluation. Rather than immediately reporting the disclosure and quarantining the information, Marathon’s president reviewed the information, circulated it to multiple individuals—including persons outside the company—and retained it for use in Marathon’s subsequent protest filings.
China Suspends Export Controls on Certain Critical Minerals and Related Items
11.13.2025
On October 9, 2025, China’s Ministry of Commerce (MOFCOM and General Administration of Customs (GAC) published a set of announcements (Nos. 55 to 58 and 61, 62) with a series of export control measures. These include export controls on:
UK Launches Consultation on “Back British” Defence Offset Plan
11.03.2025
The UK Government has announced a new “Back British” defence offset initiative aimed at ensuring British businesses, workers and communities benefit when the Ministry of Defence (MoD) procures equipment or services from overseas suppliers. In an official press release published on October 23, 2025, Minister for Defence Readiness and Industry Luke Pollard unveiled a 12-week industry consultation on this proposed offset approach. The goal is to boost UK jobs, skills and innovation by requiring international defence contractors to invest in the UK economy as part of any major procurement deal.
California Imposes New Data Breach Notification Requirements
10.31.2025
On October 3, 2025, Governor Gavin Newsom signed into law Senate Bill No. 446, which makes important changes to the California data breach notification statute. The new law, which takes effect on January 1, 2026, mandates deadlines for data breach notification to affected individuals and the state attorney general. SB 446 passed with no votes in opposition.
Federal Reserve Governor Waller Proposes “Payment Accounts”: A Potential New On-Ramp for Payments Innovators
10.27.2025
In an October 21, 2025, address at the Federal Reserve’s inaugural Payments Innovation Conference, Gov. Christopher Waller outlined a proposal for the creation of a new class of Federal Reserve accounts—referred to as “payment accounts” or “skinny master accounts.” This proposal, though conceptual, could mark a significant operational development in how the Federal Reserve interfaces with payment-focused institutions and fintechs, while remaining within the statutory limits of current law. The idea reflects a growing acknowledgment within the Federal Reserve that the existing master account framework, which was designed for a traditional banking system, may not fully accommodate the technological evolution of the modern payments ecosystem.
Claims of a Link Between Tylenol/Acetaminophen Use and Autism Prompt Regulatory and Litigation Risks? Insurance Coverage May Offer Key Protection
10.24.2025
In late September 2025, the Food and Drug Administration (FDA) initiated the process for a label change for acetaminophen to reflect that the use of acetaminophen by pregnant women may be associated with an increased risk of neurological conditions. The FDA also sent a letter to physicians to “consider minimizing the use of acetaminophen during pregnancy for routine low-grade fevers” while acknowledging that such consideration should be “balanced with the fact that acetaminophen is the safest over-the-counter alternative in pregnancy among all analgesics and antipyretics.” President Donald Trump—with Secretary of Health and Human Services Robert F. Kennedy, Jr. at his side—amplified the FDA’s action, noting in a White House event that his administration “has determined that acetaminophen exposure during pregnancy causes autism.” The announcement conflicts with efforts by manufacturers, health professionals and industry groups to convince the public and regulators that common, over-the-counter pain medications can be used safely during pregnancy.
USPTO Issues Notice of Proposed Rulemaking, an Open Letter and Memorandum, Impacting Value and Availability of Inter Partes Reviews
10.23.2025
The U.S. Patent and Trademark Office’s (PTO) Notice of Proposed Rulemaking (NPRM) represents an important change in the continued evolution of inter partes review (IPR) practice. This NPRM was accompanied by an Open Letter from America’s Innovation Agency and a Memorandum from the PTO’s Director.
Implementation of Executive Order 14299 Turns Advanced Nuclear Deployment into a U.S. Army Priority
10.21.2025
On October 14, 2025, the U.S. Department of the Army announced the launch of the Janus Program, a next-generation nuclear energy initiative intended to deliver resilient and assured power for national defense installations and critical missions.
California Establishes New Criminal and Civil Liability Targeting Shared Pricing Algorithms and “Coercion”
10.16.2025
California’s AB 325, signed into law by Governor Newsom on October 6, 2025, and scheduled to take effect January 1, 2026, adds two new provisions to the Cartwright Act aimed at algorithmic pricing and platform design. One provision regulates the use or distribution of a “common pricing algorithm” and adds a stand-alone prohibition on coercing firms to adopt an algorithm’s recommended price or commercial term. Another provision establishes a more lenient pleading standard for Cartwright Act claims.