FAR Council Releases Updated CUI Proposed Rule as Part of the Revolutionary FAR Overhaul - Hunton Andrews Kurth LLP
The FAR Council released an updated proposed rule on Controlled Unclassified Information (CUI) as part of a major overhaul of the Federal Acquisition Regulation (FAR). This rule will impose new cybersecurity and data handling requirements on contractors handling CUI.
Aforeworn detected this change in the Government Contracting (SAM/FAR) space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. All federal contractors, especially small businesses, defense contractors, GSA schedule holders, and federal grant recipients who handle CUI. should confirm how it applies to their specific situation before acting. There is a time constraint attached: The comment period for the proposed rule is typically 60 days from publication in the Federal Register. Monitor for exact dates.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Government Contracting (SAM/FAR) continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
The proposed rule updates CUI handling requirements, likely aligning with NIST SP 800-171 and CMMC standards, and introduces new compliance clauses in contracts.
Who it affects
All federal contractors, especially small businesses, defense contractors, GSA schedule holders, and federal grant recipients who handle CUI.
What you must do
Review the proposed rule and assess current CUI handling practices. Prepare to implement enhanced cybersecurity measures and update policies to comply with new requirements.
Deadline
The comment period for the proposed rule is typically 60 days from publication in the Federal Register. Monitor for exact dates.
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- New Proposed Rulemaking Targets Federal Grants - The National Law Review
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- A New Rulebook for Federal Grantmaking: An Analysis of OMB’s Proposed “Uniform Grants Regulation” - Arnold & Porter
- CyberSheath Reopens Free Defense Contractor Cybersecurity Compliance Training Program as the DIB Races Toward CMMC Phase 2 Deadline - Business Wire
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