Government contractors are incurring significant costs and disruptions from the ongoing federal shutdown, the longest in U.S. history, but many hesitate to seek reimbursements through established processes like requests for equitable adjustment due to fears of retaliation from the Trump administration. Attorneys from Pillsbury Winthrop Shaw Pittman highlight this anxiety, noting the Anti-Deficiency Act prevents agencies from new awards or modifications, leading to losses such as idle labor, storage fees, delays, and contract terminations. Despite an atmosphere of political weaponization of funding—targeting Democratic areas—they urge contractors not to forgo rights and recommend three steps: review relevant contract clauses, document impacts thoroughly, and time claims strategically within 30-day notice periods or up to six years under the Contract Disputes Act.
Read more: https://www.govexec.com/management/2025/10/contractors-fear-retaliation-if-they-try-recover-shutdown-costs/409221/
