One week into President Trump’s second term, we’ve seen a bevy of executive actions aimed at reshaping the federal government. Among them is an Executive Order that changes previously-existing affirmative action requirements.
On January 21, 2025, President Trump signed an Executive Order entitled Ending Illegal Discrimination and Restoring Merit-Based Opportunity. This Order declares that “diversity, equity, and inclusion” practices violate federal civil rights laws and undermine equality of opportunity. So, the Order announces that it is the “policy of the United States to protect the civil rights of all Americans,” and thus requires all executive agencies to eliminate DEI-related mandates. Moreover, it requires agencies to “combat illegal private-sector DEI preferences, mandates, programs, and activities.”
To meet these policy objectives, the Order imposes new requirements—or prohibitions—on federal contractors:
- The Order revokes Executive Order 11246 (signed by President Johnson in 1965), which required federal contractors to adopt affirmative action plans. The Order then goes further, to forbid contractor compliance with the affirmative action requirements imposed by Executive Order 11246. No later than April 21, 2025, federal contractors can no longer comply with these requirements (although contractors might still be subject to other requirements).
- The Order directs the Office of Federal Contract Compliance Programs to immediately cease promoting diversity and requiring federal contractors and subcontractors from implementing affirmative action.
- Prohibiting federal contractors and subcontractors from considering race, color, sex, sexual preference, religion, or national origin in their employment and contracting practices.
- Requiring each executive agency to include a provision in every contract or grant award terms that (a) state that compliance with anti-discrimination laws is material to the government’s decision to make payment, and (b) certifying that the awardee does not operate DEI programs that violate federal law.
Most contractors spent time and energy to ensure they were compliant with anti-discrimination requirements, as they were once understood. But now, contractors must review their internal policies and procedures to ensure they comply with these new requirements (or prohibitions). Failing to do so can have serious consequences: not only might a contractor lose an award, but the government might also pursue False Claims Act liability for any payments deemed improper.
If you have questions about these new anti-discrimination issues, please contact us.
Executive Order Changes Anti-Discrimination Compliance Landscape was last modified: January 28th, 2025 by