Compliance Stuff

For the second straight fiscal year, the White House has proposed to defund and eliminate the Office of Federal Contract Compliance Programs (OFCCP). Quick Hits On April 3, 2026, the Office of Management and Budget published the White House’s priorities for fiscal year (FY) 2027 through the president’s proposed federal budget and related fact sheets. President Trump’s proposed FY 2027 federal budget would defund OFCCP, as he proposed for the FY 2026 budget, and move the agency’s “more limited statutory functions” as to individuals with disabilities and protected veterans to an expanded Office of Civil Rights. Even if the president’s proposals for OFCCP in FY 2027 are achieved, current legal obligations of federal contractors and subcontractors under Section 503 of the Rehabilitation Act and VEVRAA remain unaffected. On April 3, 2026, the Office of Management and Budget (OMB) published President Donald Trump’s proposed  fiscal year (FY) 2027 budget  for the federal government, ...

The Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has published proposed changes to regulations under the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act (Section 503) and has published a notice of rescission of regulations implementing Executive Order (EO) 11246. These proposed changes implement  EO 14173 , which revoked EO 11246. While the proposals are mostly procedural and involve eliminating cross-references to EO 11246, the proposed modifications to the Section 503 regulations also eliminate the requirement that contractors invite applicants and employees to self-identify their disability status and eliminate the current regulation’s utilization goal requirements.  Background:  Before January 21, 2025, the OFCCP enforced EO 11246, VEVRAA, and Section 503. EO 11246 prohibited employment discrimination by federal contractors and subcontractors based on race, color, religion, sex, sexua...