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Stay ahead in the dynamic world of government contracting with our roundup of the top five must-know updates from this week.
- USAID Merged into State Department: The U.S. Agency for International Development (USAID) will be folded into the State Department. This move will significantly reduce USAID’s funding and workforce, although it will remain a humanitarian aid entity. Secretary of State Marco Rubio has been appointed the acting administrator. Learn more
- Federal Judge Pauses Trump Administration’s Funding Freeze: A second federal judge has ordered a temporary pause on the Trump administration’s efforts to freeze federal funding. This decision comes as a relief to many states relying on federal grants and loans. Learn more
- SBA Resets Small Business Goals for 2025: The Small Business Administration (SBA) has reset its small business contracting goals for 2025. The new goals require agencies to award at least 5% of all contracts to small disadvantaged businesses. Learn more
- President Trump Issues Executive Order to Remove Barriers to American Leadership in AI: On January 23, 2025, President Trump signed an executive order titled “Removing Barriers to American Leadership in Artificial Intelligence.” This order aims to sustain and enhance America’s global AI dominance by revoking existing AI policies that hinder innovation and developing an AI action plan to promote human flourishing, economic competitiveness, and national security. Learn more
- President Trump Issues Executive Orders Imposing Tariffs on Products from Canada, Mexico, and China: On February 1, 2025, President Trump issued three executive orders imposing additional tariffs on products from Canada, Mexico, and China, effective February 4, 2025. The tariffs on Canadian and Chinese products will go into effect on February 4, 2025, while the tariffs on Mexican products will be delayed for a month due to an agreement reached between Mexico and the U.S. on February 3, 2025. These tariffs are intended to address the national emergency declared at the southern border regarding drug trafficking and illegal immigration. Government contractors should be aware of the potential cost increases and supply shortages resulting from these tariffs and review their contracts for mechanisms to recover costs or excuse delays. Learn more
Stay tuned for next week’s edition of “Top 5 Things to Know in GovCon this Week” for more insights and updates from RSM on the ever-changing government contracting industry!
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Susanna Hoffpauer
Susanna Hoffpauer is a dedicated member of RSM's GovCon team, specializing in the implementation and sale of RSM's tailored government contracting services. With a focus on Dynamics 365 Finance & Operations (D365 F&O), Susanna brings a wealth of expertise in streamlining financial and operational processes for government contractors. In today's rapidly evolving regulatory landscape, Susanna ensures clients remain compliant with critical standards, including the Cybersecurity Maturity Model Certification (CMMC). Her commitment to excellence and deep understanding of compliance requirements makes her a trusted advisor in the government contracting space.
