Addressing DEI Discrimination by Federal Contractors
Strengthens the enforcement mechanisms from EO 14173, requiring federal contractors to affirmatively certify they have eliminated DEI programs and imposing penalties for noncompliance.
Section by Section
What each section does, and how they differ.
Establishes that diversity, equity, and inclusion activities involving disparate treatment based on race or ethnicity are unethical and often illegal; policy directs federal government to promote economy and efficiency in contracting by preventing racial discrimination.
Defines racially discriminatory DEI activities as disparate treatment based on race or ethnicity in recruitment, employment, contracting, or program participation; defines program participation broadly.
Within 30 days, directs agencies to ensure contracts include clause prohibiting racially discriminatory DEI activities and providing for reporting, access to records, contract termination, and ineligibility for future contracts for violations.
Directs OMB to issue guidance on compliance; authorizes agencies to cancel, terminate, or suspend contracts for violations; directs Attorney General to identify high-risk sectors and consider False Claims Act actions against contractors.
Directs FAR Council to amend Federal Acquisition Regulation to include the required clause and remove conflicting provisions; directs interim guidance within 60 days.
Standard severability clause: if a court strikes any provision, the rest of the order stands.
Standard boilerplate: preserves existing agency authority, conditions the order on appropriations, and creates no enforceable private rights.