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
CEQ Finalizes Rescission of NEPA Implementing Regulations01.16.2026
On January 8, 2026, the White House Council on Environmental Quality (CEQ) published a final rule adopting—without change—its February 25, 2025, interim final rule (IFR) rescinding all iterations of CEQ’s National Environmental Policy Act (NEPA) implementing regulations from the Code of Federal Regulations (40 C.F.R. Parts 1500–1508). The final rule, which had immediate effect, primarily (1) responds to comments submitted on the IFR and (2) reaffirms CEQ’s position that, following the rescission of Executive Order (EO) 11991 (1977), CEQ lacks authority to maintain binding, government-wide NEPA regulations applicable to other federal agencies.
New Year, New Benefits: Trump Accounts Offer a New Opportunity for Employer-Sponsored Benefits
01.14.2026
On July 4, 2025, President Trump signed into law the One, Big, Beautiful Bill Act (OBBBA), which, among many other provisions, created a new type of tax-favored account for children known as a “Trump Account.” On December 29, 2025, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued Notice 2025-68, outlining their intent to issue regulations under newly enacted Section 530A of the Internal Revenue Code (IRC) and providing extensive interim guidance.
President Trump Signs Holding Foreign Insiders Accountable Act into Law
01.12.2026
On December 18, 2025, President Trump signed the 2026 National Defense Authorization Act, which includes the Holding Foreign Insiders Accountable Act (the HFIAA), expanding the scope of beneficial ownership reporting obligations to the directors and officers of foreign private issuers (FPIs), effective on March 18, 2026. The HFIAA amends Section 16(a) of the Securities Exchange Act of 1934 (the Exchange Act) such that securities issued by FPIs will no longer be exempt from Section 16(a)’s disclosure requirements with respect to such FPI’s officers and directors.
Data Center Development at Brownfields Sites
01.08.2026
Due to an unprecedented surge in data creation and consumption driven primarily by the rapid rise of artificial intelligence (AI) and cloud services, demand for computing power is increasing and data center development has become necessary to meet consumer, commercial and governmental needs.
Lessons from a Major Software Sunsetting: Contractual and Post-Contractual Best Practices
01.07.2026
Imagine this: You receive a cheerful “product evolution” email from the vendor providing a critical technology that you rely on to run your business. It says that critical system is being sunset. Your sales rep calls you and assures you that a replacement platform will of course be offered … for a price. The cheery emails and promises of something better mask a stark reality: a business-critical tool is going away on someone else’s timetable. Your operations depending on that system now face disruption, unplanned costs and compressed migration timelines.
FY 2026 NDAA Includes New Statutory Framework for Outbound Investment Restrictions
01.07.2026
The Fiscal Year 2026 National Defense Authorization Act (NDAA), which was signed into law on December 18, 2025, includes the Comprehensive Outbound Investment National Security Act of 2025 (“COINS Act” or the “Act”), which establishes a statutory framework to prohibit or require notification of certain outbound investments by U.S. persons in technology sectors deemed sensitive to U.S. national security. The COINS Act largely builds on the outbound investment regime implemented towards the end of the Biden administration under Executive Order (EO) 14105 and the U.S. Department of the Treasury’s existing regulations at 31 CFR Part 850 (the “Outbound Investment Regulations”), which went into force on January 2, 2025. (Our previous coverage on the Outbound Investment Regulations implemented under EO 14105 is available here.)
VC Firms Face New California Reporting Mandate
01.06.2026
This alert expands upon Pillsbury’s earlier overview of California’s diversity disclosure legislation, “California Bill Designed to Support Underrepresented Entrepreneurs Signed into Law.” Since the law’s passage, the California Department of Financial Protection and Innovation (DFPI) has assumed oversight of the Venture Capital Diversity Reporting Program from the Civil Rights Department and is now developing the survey and reporting process that venture and private investment fund managers must follow under Senate Bill 54 (SB 54), as amended by Senate Bill 164 (SB 164).
CTA Update: A Review of the Status of Beneficial Ownership Reporting Requirements under the Corporate Transparency Act and Related Federal and State Initiatives as of January 5, 2026
01.06.2026
Status of the Corporate Transparency Act After FinCEN’s Interim Final Rule The Interim Final Rule, issued March 26, 2025, by the Financial Crimes Enforcement Network (FinCEN), stated that FinCEN was reexamining the Regulations implementing the Corporate Transparency Act (CTA). FinCEN materially reduced the scope of reporting required under the CTA until further notice, noting that FinCEN would use the remainder of 2025 to craft a modified set of Regulations on beneficial ownership disclosure. Under the Interim Final Rule, only entities formed outside the U.S. and qualified to do business in the U.S. would have to file Beneficial Ownership Information Reports to FinCEN identifying their direct or indirect beneficial owners. Moreover, no U.S. person need be identified as a beneficial owner of these reporting companies, nor would any U.S. person have a personal obligation to supply any information to FinCEN under the CTA. However, U.S. and non-U.S. persons who were “company applicants” of companies that remained obligated to report would continue to have to report and be reported.
California’s AB 692 Significantly Restricts “Stay-or-Pay” and Repayment Provisions in Employment Agreements
01.06.2026
California Assembly Bill 692 (AB 692) adds new restrictions on employment contract repayment clauses, commonly referred to as “stay-or-pay” provisions. Effective January 1, 2026, the law broadly prohibits employers from requiring employees to repay sign-on bonuses, training expenses or other employment-related benefits upon separation, except in limited circumstances.
Public-Private Partnerships in Real Estate: Building Strong Foundations, Navigating Risk and Embracing Emerging Trends
01.05.2026
Since the White House released on July 23, 2025, “Winning the AI Race: America’s AI Action Plan”—issued under Executive Order 14179, “Removing Barriers to American Leadership in Artificial Intelligence”—there has been growing activity in support of the Plan, including by Big Tech. The Plan addresses a myriad of AI-related initiatives, including several infrastructure policies. Among its potential impacts is a surge in public-private partnerships (P3s).
FCC Implements Categorical Prohibition on All Foreign-Produced UAS and UAS Critical Components
12.31.2025
On December 22, 2025, the U.S. Federal Communications Commission (FCC) Public Safety and Homeland Security Bureau (PSHSB) issued a Public Notice announcing the addition of nearly all “uncrewed aircraft systems (UAS) and UAS critical components produced in a foreign country” to the Covered List. The action effectively prohibits any foreign-made, including U.S.-owned but produced abroad, UAS and critical components from being imported, marketed, or sold in the United States, regardless of specific country of origin or whether the UAS is intended for commercial, military, or personal use. The action also broadly defines UAS critical components using a non-exhaustive list that includes sensors, cameras, communications devices, motors, and batteries, as well as all associated software, capturing nearly all the major components of a UAS. This marks the first time the Covered List has been employed to restrict an entire product category.
NYS LLC Transparency Act Becomes Effective
12.31.2025
New York State is the only state to have enacted a beneficial ownership disclosure law modeled on the federal Corporate Transparency Act (the “CTA”). This law, named the “LLC Transparency Act” (the “LLC TA”), becomes effective on January 1, 2026.
Cannabis Rescheduling Creates Tax Opportunities and Challenges
12.29.2025
On December 18, 2025, President Trump ordered the Attorney General to reschedule cannabis from being classified as a Schedule I controlled substance to a Schedule III controlled substance. This change will reduce federal income tax burdens on cannabis companies. Under current law, such tax burdens frequently approach 70%. But one unanswered question is when the change will take effect. In the linked White Paper, Mark Leeds and Christine Tsai, both members of the Pillsbury Tax Department, explore tax planning opportunities for cannabis companies to address the possibility of delayed implementation of tax relief.
FCPA Enforcement After the Pause: What Early Cases Reveal
12.23.2025
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.