Federal Contractors Face New DEI Rules: What President Trump’s Order Means for Your Business
The White House just released new rules yesterday requiring federal contractors to agree not to engage in racially discriminatory DEI activities and to take certain compliance steps. President Trump’s March 26 executive order is focused on “ensuring merit-based and efficient contracting and employment.” The order gives federal agencies 30 days to begin incorporating a related clause on diversity, equity, and inclusion programs into covered contracts. Here’s what federal contractors and subcontractors can expect and five steps you should consider taking now. DEI-Related Contract Clauses The executive order directs federal agencies to include a new DEI-related clause in all contracts covered by the Federal Property and Administrative Services Act. The rules also apply to subcontractors and their lower-tier subcontractors. Here are the key aspects you should note: Contract Terms: Contractors will need to agree not to engage in discriminatory DEI activities based on race...