Hogan Lovells – Federal contractors, borrowers, grantees, and other recipients of federal funds are subject to a range of regulations restricting the use of those funds for political purposes, including lobbying. On August 28th, President Trump issued a presidential memorandum emphasizing these limitations, focusing specifically on 31 U.S.C. § 1352 (also known as the “Byrd Amendment”) and directing the Department of Justice to investigate whether Federal grant funds are being used to illegally support lobbying activities. This move underscores the increased legal risks for contractors and recipients of Federal financial assistance, particularly for activities that may be interpreted as political in nature.
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Limitations on Lobbying: Increased Scrutiny Towards Federal Grantees and Contractors
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