Government contractors face mounting costs and operational chaos as the federal shutdown continues.
Although legal rights exist for companies to recoup their losses, attorneys say fears of Trump administration reprisal loom over the industry.
“After the DOGE actions to eviscerate USAID and pretty much punish many, many agencies and terminate thousands of contracts, I think the contractor community is tentative to actually enforce their rights,”
said David Dixon, an attorney at Pillsbury Winthrop Shaw Pittman.
This fear of retaliation is a significant problem besides late payments and expired contracts.
Author's summary: Contractors fear retaliation over shutdown costs recovery.