On its first day in office, the Biden Administration directed a freeze on pending regulations and directed agencies to review pending and proposed regulations to assure pending regulations are consistent the its policy goals.

The freeze directed that:

  • Federal Agencies will not propose or issue new rules until an official, designated by the President, approves the rule.
  • Rules sent to the Office of the Federal Register (the organization that publishes and organizes Federal rules and regulations) but not yet published must be withdrawn.
  • Agencies should consider postponing rules that are published yet not effective so the agencies can review the rules, to include possibly extending the comment period for the rule. (When the U.S. considers new regulations, there is a lengthy and very defined process for any interested persons or businesses to comment on the rule being considered).
  • Agencies should consult with the Federal Government’s rulemaking guru – the Office of Management and Budget (OMB) – and OMB can direct on how to proceed.

How The Regulatory Freeze Impacts Government Contractors

This review period will delay many upcoming rules originally scheduled to take effect this year.

From the legal perspective, Federal Government contractors should be sure to stay up to date on the regulations and watch out for regulatory changes so you can be sure to follow them.

From the business perspective, some of the new or updated regulations may provide opportunities for your business, so you should be prepared to capitalize on any opportunities that may be presented.

For more information on the regulatory freeze and how it may impact government contractors, contact Cassidy Law today.

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