In a move lauded by federal contractors, President Donald Trump signed a resolution into law today that blocks the “blacklisting” rule from taking effect.  The rule would have required federal contractors to disclose allegations of misconduct, whether or not those allegations were proven or dismissed, going back for three years.  Congress invoked the Congressional Review Act to block the rule before it took effect and President Trump’s actions today cemented the rule’s fate.

It has been targeted by contractors and Congress ever since it was enacted by President Obama by executive order.  Many critics cited the onerous reporting requirements and obligations which would discourage smaller businesses from competing for federal contracts.  Critics also argued that there are sufficient measures already in place to ensure fair pay and safe work environments under existing laws making the blacklisting rule an unnecessary and duplicative regulation.

Members of Congress were quick to hail the action as part of President Trump’s overall plan to reducing red tape and limiting the power of unelected officials.  Fact Sheet on the resolution.

For more information, contact Ahmed Younies at 714-884-4610 or [email protected].

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