Regulatory Playbook

Trending Issues

New Executive Order Seeks to Limit Stock Buy Backs and Executive Compensation for Underperforming Defense Contractors (Part 2)
01.30.2026

(This is the second of two alerts examining this issue.)
In Part 1 of this client alert, we briefed the substance of President Trump’s January 7, 2025, Executive Order (EO) titled “Prioritizing the Warfighter in Defense Contracting” and provided preliminary observations. As we detailed, the EO gives broad discretion to the U.S. Secretary of War to designate underperforming contractors and directs the Secretary, within 30 days of the EO’s issuance and on an ongoing basis thereafter, to notify defense contractors of such designations. The 30-day deadline for the Secretary to designate underperforming contracts is February 6, 2026. Contractors receiving a notice of underperformance on February 6 will only have until Saturday, February 21 to submit to the Secretary a remediation plan that has the approval of their Board of Directors. While the EO directs the Secretary to allow fifteen days for contractors to submit a Board-approved remediation plan, the EO also allows the Secretary to initiate immediate action if the contractor and Secretary reach an impasse during the 15-day negotiation window. Part 1 of this Client Alert advised defense contractors to identify issues related to delivery, quality, schedule and cost of their existing defense contracts. This second part expounds upon how organizations can best prepare to react to underperformance notices from the Secretary.

Trump Administration Takes Several Trade Actions Targeting Advanced AI Semiconductors While Deferring Broader Tariff Actions on the Semiconductor Industry
01.28.2026

In recent weeks, the Trump administration has taken several actions to implement its policy toward the export of advanced AI commodities to China. These include the Department of Commerce (Commerce) Bureau of Industry’s (BIS) final rule implementing a case-by-case review policy (changed from a presumption of denial policy) of exports of certain advanced computing commodities to end users in China (including Macau), and a Proclamation following an investigation under Section 232 of the Trade Expansion Act of 1962 (Section 232) of imports of semiconductors, semiconductor manufacturing equipment and derivative products, which narrowly targets the advanced AI commodities covered by the BIS export control policy action. The Section 232 Proclamation further provides broad tariff exceptions for in-scope commodities used in domestic applications. These twin actions come on the heels of an investigation under Section 301 of the Trade Act of 1974 (Section 301) of China’s acts, policies and practices (APPs) related to targeting of the semiconductor industry for dominance in which the Administration found that the Chinese APPs were actionable under Section 301, but deferred action.

President Trump Backs Commerce Department Findings, Directs Negotiations to Secure Critical Mineral Supply Chains
01.28.2026

On January 14, 2026, President Trump signed a Proclamation following the Department of Commerce’s investigation of the effects of imports of processed critical minerals and their derivative products on U.S. national security under Section 232 of the Trade Expansion Act of 1962 (“Section 232”). As detailed in our prior client alert, President Trump initiated the investigation on April 22, 2025, with a scope that includes the now 60 minerals listed in the United States Geological Survey’s “Critical Minerals List” as well as any subsequent lists and uranium.

The Emerging Regulatory Framework to Power Data Centers
01.27.2026

The rapid growth of data centers is exposing the limits of the U.S. electricity regulatory framework that was built for incremental, predictable load growth. That framework is now under scrutiny in proceedings before the Federal Energy Regulatory Commission (FERC) that could materially reshape how large electricity consumers like data centers obtain power and connect to the grid.

Ninth Circuit Oral Argument Highlights: Challenges to California Climate Disclosure Laws (SB 253 and SB 261)
01.27.2026

On January 9, 2026, the Ninth Circuit heard oral argument in the consolidated appeals challenging California’s climate disclosure statutes, SB 253 (the Climate Corporate Data Accountability Act) and SB 261 (the Climate-Related Financial Risk Act) in Chamber of Commerce v. Sanchez No., 25-5327 (9th Cir. 2025). As we have discussed in previous alerts on this topic, California enacted two comprehensive climate disclosure laws in 2023. SB 253 and SB 261 impose greenhouse gas emissions and climate-related financial risk reporting requirements applying to thousands of public and private companies formed under U.S. law and “doing business in California.”

Congressional Investigations to Take Center Stage in 2026
01.23.2026

With a narrow Republican majority in the House, a crowded election-year calendar and the midterm elections already looming, congressional leaders are leaning heavily on oversight and investigations as their tool of choice. Passing major legislation will be difficult. Investigations, by contrast, can be fast, flexible and highly visible—and they allow lawmakers to shape policy debates, apply pressure and generate headlines without moving a bill.

New Executive Order Seeks to Limit Stock Buy Backs and Executive Compensation for Underperforming Defense Contractors
01.22.2026

On January 7, 2026, President Donald Trump issued the “Prioritizing the Warfighter in Defense Contracting” Executive Order (EO). The EO directs the U.S. Secretary of War (Secretary) to establish a process for reviewing defense contractors for critical weapons, supplies and equipment that, as determined by the Secretary, are underperforming on their contracts; have not invested sufficient capital in necessary production capacity; have not sufficiently prioritized U.S. government contracts; or maintain insufficient production speed. The EO does not provide guidance as to any specific criteria to be used in determining what constitutes underperformance, granting full discretion to the Secretary.

Early EU and UK Responses to President Trump’s Announcement of Tariffs Linked to Greenland and Potential Paths Forward
01.20.2026

On January 17, President Trump posted on social media that the United States would impose a 10% tariff effective February 1 on eight European countries (France, Germany, UK, Netherlands, Denmark, Norway, Sweden and Finland) until those countries accept his demand that the Danish Realm sell Greenland to the United States. The social media post indicated that the tariff rate would rise to 25% on June 1, 2026, if no “deal is reached for the Complete and Total Purchase of Greenland.” As of publication of this alert, the Trump administration has yet to publish any Executive Order or other formal announcement, and circumstances on the ground could change rapidly with contemporaneous political discussions over Greenland in Davos.

Revenge of the Lawn: The Fifth Circuit Supports Fund Manager Social Security Tax Planning in Sirius Solutions
01.20.2026

In Richard Brautigan’s 1971 novella Revenge of the Lawn, an ordinary, inanimate bit of outdoor space strikes back in unforeseen and disruptive ways when mistreated. (The scenes with the geese are priceless.) A powerful analogy can be drawn from this story about the revenge of little things to the mass challenges made by the Internal Revenue Service (IRS) to limited partnership (LP) structures employed by private fund managers to mitigate the impact of 3.8% social security taxes. The LP structures were popular until the 2023 Tax Court decision in Soroban Capital Partners v. Commissioner upended such planning. While a 2024 Tax Court case supported the IRS’s challenges to LP tax planning, on January 16, 2026, in Sirius Solutions, I, LLP v. Comm’r, the Fifth Circuit Court of Appeals held that these strategies work to prevent the imposition of self-employment taxes.

FCC Announces Seminal Enforcement Action for Violating Team Telecom Commitments
01.16.2026

On January 8, 2026, the U.S. Federal Communications Commission (FCC) announced the resolution of a first-of-its-kind enforcement action targeting Marlink Inc. (Marlink) for violations of its international section 214 and earth station authorizations (Authorizations), which had been conditioned on compliance with commitments and undertakings in a 2022 Letter of Agreement (LOA) with the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Service Sector (Team Telecom). Following a referral from the U.S. Department of Justice (DOJ), the FCC Enforcement Bureau uncovered a continuing failure to comply with commitments to restrict foreign employee access to U.S. customer information and communications infrastructure (U.S. Records), absent prior approval from the DOJ. The FCC and Marlink entered into a consent decree, including monetary forfeiture, compliance plan, and revision of internal controls, to resolve the violation of FCC rules.

FTC Announces HSR Threshold and Filing Fee Increases for 2026 Transactions
01.16.2026

As a result of the increase in the U.S. Gross National Product (GNP) for 2025, the Federal Trade Commission (FTC) has announced an increase in the jurisdictional filing thresholds for the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR). The minimum size of transaction threshold will increase by $7.5 million, a 5.9% increase, to $133.9 million. The thresholds determine whether parties involved in proposed mergers, consolidations, or other acquisitions of voting securities, assets, or unincorporated interests must notify the FTC and the Antitrust Division of the U.S. Department of Justice of a proposed transaction and comply with a mandatory waiting period before the transaction may be consummated. The revised thresholds will take effect on February 17, 2026. Until then, the current $126.4 million threshold is still in effect.

CEQ Finalizes Rescission of NEPA Implementing Regulations
01.16.2026

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.