What: On March 26, 2026, President Donald J. Trump signed an Executive Order (EO) entitled “Addressing DEI Discrimination by Federal Contractors.”
Why: The EO aims to promote economy and efficiency in federal contracting by preventing the use of racially discriminatory Diversity, Equity, and Inclusion (DEI) activities within businesses doing work for the government. The EO states that:
- All contractors (prime and subcontractors) provide the government with access to the business’ books, records, and accounts to ensure the business does not engage in DEI activities.
- Noncompliance can result in the contract being cancelled, terminated, or suspended in whole or in part, and the contractor or subcontractor being declared ineligible for further government contracts
- The Federal Acquisition Regulatory Council will issue deviations and interim guidance within 60 days to implement this EO.
- The Director of the Office of Management and Budget (OMB) will issue guidance to federal contractors.
- The Director of the OMB, the Attorney General, the Assistant to the President for Domestic Policy, and the Chairman of the Equal Employment Opportunity Commission shall identify specific economic sectors that pose a particular risk of engaging in DEI activities and issue guidance to contracting agencies to ensure compliance within those sectors.
Action: The EO is effective immediately.
CONFERENCE DETAILS:
Addressing DEI Discrimination by Federal Contractors
CONTACT: David Mullis
EMAIL: david.mullis@sba.gov
TOPIC(S): Regulatory Alerts
TAG(S): FAR Council
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