New Restrictions on Defense Contractors Retaining Outside Consultants Will Take Effect This Month

In January 2025, Covington issued a client alert noting that the National Defense Authorization Act (“NDAA”) for Fiscal Year (“FY”) 2025, which sets annual spending and policy for the Pentagon, introduced new China-related prohibitions on defense contractors and their consultants. The provision is finally set to take effect on June 30, 2026. This client alert provides an update on the new restriction and suggested compliance steps defense contractors, and consultants who work with defense contractor clients, might consider taking before the … Read the rest