On January 21, 2025, President Trump issued a widely expected executive order (EO), Ending Illegal Discrimination and Restoring Merit-Based Opportunity, targeting affirmative action and diversity, equity, and inclusion (DEI) initiatives in the federal government. The EO revokes multiple labor-related executive orders promoting affirmative action and other DEI policies, including EO 11246, Equal Employment Opportunity (September 24, 1965), which has long required government contractors to adhere to equal employment and affirmative action requirements.
The EO creates new compliance obligations for all government contractors and grant recipients and will lead to new Federal Acquisition Regulation (FAR) rules, eliminating such things as mandatory affirmative action plans and adding a new mandatory contract certification. Any contractor or grant recipient that currently maintains a DEI program should especially take note, as the EO directly links the maintenance of future DEI programs to False Claims Act (FCA) liability. Key provisions of the new EO include: MORE