GovCon’s vital signs point to DHS’ partial closure, Anthropic’s possible exit and the FAR Overhaul

GovCon finds itself in a strange situation where the Homeland Security Department does not have a budget and is in a shutdown, but the three immigration agencies are still operating with some funds. How is that possible? Stephanie Kostro, president of the Professional Services Council, joins Nick and Ross for this episode to lay out how that is and the DHS funding lapse’s myriad impacts on industry and society. Their conversation then turns to what contractors are seeking to learn and understand from the U.S. government’s very public breakup with Anthropic, which will take months to complete, and what to watch for next in the Federal Acquisition Regulation overhaul effort. The Revolutionary FAR Overhaul is far from the only policy item contractors should pay attention to in 2026, as Kostro explains. Trump's new DHS nominee promises some changes, adequate staffing amid shutdown-induced departures CISA to furlough most of its workforce under impending DHS shutdown Path to averting a shutdown remains elusive as lawmakers debate DHS funding Microsoft takes Anthropic's side in DOD fight, warns it sets a new precedent WT 360: Nextgov/FCW’s Alexandra Kelley on the government’s breakup with Anthropic Anthropic sues over a dozen federal agencies and government leaders The FAR overhaul rewrote the rules, but now comes the hard part The hardest part of FAR reform is culture, not the rules GSA set to begin its rulemaking push for the FAR overhaul Small businesses face upheaval under the acquisition overhaul and agency cuts