Contractors fear retaliation if they try to recover shutdown costs

Contractors Fear Retaliation Over Shutdown Costs

Government contractors face mounting costs and operational chaos as the federal shutdown continues.

Despite existing legal rights to recoup losses, companies are fearful of exercising them due to fears of reprisal from the Trump administration.

“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.

Author's summary: Contractors fear retaliation over shutdown costs recovery.

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Government Executive Government Executive — 2025-10-31

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