Addressing DEI Discrimination by Federal Contractors

President Donald J. Trump’s order directs federal agencies to require contractors and subcontractors to agree not to engage in what the order defines as “racially discriminatory DEI activities,” including race-based differences in hiring, promotions, contracting, training, and other workplace programs. It requires these contract clauses to give agencies access to records for compliance checks and warns that violations can lead to contract cancellation, suspension, debarment, and possible False Claims Act action. The order also tells the Office of Management and Budget and the Federal Acquisition Regulatory Council to issue guidance and update federal contracting rules to put these requirements into effect. Trump says the order was issued to promote economy and efficiency in federal contracting by preventing what the administration describes as race-based discrimination and the added costs tied to those practices.