FAR Overhaul Final Rules Stall as OMB Weighs Changes

Why It Matters

The delay hampers the federal government’s push for faster, more transparent procurement while potential rule changes could raise compliance costs and reshape domestic sourcing strategies across multiple agencies.

Key Takeaways

• OMB still reviewing 12 final FAR overhaul rules
• Four rules near Federal Register publication pending OIRA sign‑off
• Executive order may tighten Buy American thresholds to 75% after 2029
• Agency‑wide procurement rewrites could follow major OMB adjustments
• Delays risk slowing agency-specific acquisition reforms across DoD, USDA, GSA

Pulse Analysis

The Revolutionary FAR Overhaul, launched with a series of mass deviations in May 2025, was designed to modernize federal procurement and accelerate contract award timelines. While the deviations wrapped up by September, the anticipated rollout of the 12 final rules—intended to cement those changes—has stalled as they sit under the Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA). The original schedule called for early‑2026 publication, but the process has slipped into the second quarter, leaving contractors and agencies in a holding pattern.

Complicating the review is President Trump’s March 13 executive order on truthful advertising of Made‑in‑America products. The order mandates stricter verification of Buy American Act compliance for government‑wide acquisition contracts, potentially prompting OMB to raise the U.S. content threshold from the current 65% (rising to 75% after 2029) to a higher level. Such a shift would tighten eligibility for many suppliers, increase the risk of False Claims Act investigations, and could force contractors to re‑evaluate supply chains to avoid penalties.

Beyond the FAR itself, the delay reverberates through agency‑specific procurement reforms already underway at the Department of Defense, Agriculture, and GSA. Major OMB adjustments would trigger extensive rewrites of agency rules, slowing the broader modernization agenda and adding compliance uncertainty for vendors. For the federal market, the postponement underscores the tension between rapid regulatory innovation and the rigorous oversight required at the highest levels of government, a balance that will shape procurement practices for years to come.