In recent years, investigators in Congress have ramped up scrutiny of government contractors and other recipients of federal funds. This trend has only accelerated in the current Congress, with Republican-led committees pursuing expansive inquiries targeting a wide variety of federal contractors and grantees. Along with familiar allegations of waste or misuse of federal funds, these
Inside Political Law
Updates on developments in campaign finance, lobbying & government ethics law
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Supreme Court Decision in National Republican Senatorial Committee v. Federal Election Commission Empowers Political Parties, Calls Other Restrictions into Question
In a major decision today, the Supreme Court in NRSC v. FEC struck down longstanding limits on “coordinated party expenditures” that restricted the amounts political parties could spend in coordination with federal candidates. With this decision, national party committees and the federal accounts of state parties can now spend unlimited funds to support individual federal…
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 cli…
Covington Launches Election Year Toolkit
As the election season intensifies, companies face a rapidly evolving landscape of regulatory, compliance, and reputational considerations. With heightened scrutiny on political engagement, lobbying, campaign finance, and communications, organizations must be prepared to navigate complex and fast-moving legal requirements.
Drawing on our deep experience in election and political law, public policy, and regulatory compliance, Covington…
Today’s Press Release Could Be Tomorrow’s Subpoena: Bracing For the Possibility of Democratic Congressional Investigations
With fewer than 180 days until the midterm elections, Democratic Members of Congress are laying the groundwork for future congressional investigations in the event the party regains control of one or both chambers next year. Even as Democratic Members prepare for the possibility of winning the majority, developments such as the Virginia Supreme Court’s redistricting…
Tax-Exempt Organizations: Treasury Announces IRS Plans to Revise Form 990
On April 23, 2026, the U.S. Department of the Treasury announced that the IRS plans to revise the Form 990 to improve transparency and provide clearer reporting on certain transactions of 501(c)(3) organizations, including government contracts, government grants, and fiscal sponsorship arrangements. In this alert, we provide a summary of the announcement, an estimate…
The 6 Top Compliance Mistakes by Corporations in an Election Year
An election year brings ample opportunities for corporations to participate in the political process, and the current political environment can create enormous pressures to do so. But with these opportunities and pressures come legal risks and compliance burdens. Given the differing and complex rules across jurisdictions, companies should be aware of common political law issues…
Don’t Forget Your California Major Donor Reports!
With redistricting, the “billionaire tax” and other ballot measures, and heated gubernatorial and other races, contributors are giving huge amounts of money this year in California state and local elections. California has a complex campaign finance system, and it can be easy to miss some of the requirements. Key among these is the requirement that…
State FARA Laws Pose Unique Constitutional Challenges
By Alex Langton
In 2025, Texas, Nebraska, Louisiana, Arkansas and Oklahoma enacted state-level foreign agent registration and disclosure regimes that were loosely modeled on the federal Foreign Agents Registration Act. And in the first few months of 2026, several states — Alabama, Florida, Iowa, Missouri and West Virginia, to name a few — have already introduced similar bills.
The…
Covington Announces Political Law Survey (2026 Edition)
Covington is pleased to announce that it has revised and updated its comprehensive 50-state survey of political laws for 2026.
Corporations, trade associations, non-profits, other organizations, and individuals face significant penalties and reputational harm if they violate federal or state laws governing corporate and personal political activities, the registration of lobbyists, lobbying reporting, or the…