DEI in the Crosshairs: New Executive Order Targets Federal Contractors
On March 26, 2026, President Donald Trump signed an executive order (EO) titled “ Addressing DEI Discrimination by Federal Contractors ” that, for the first time, attaches direct contractual consequences to diversity, equity, and inclusion (DEI) practices in federal contracting. 00:00 10:59 Quick Hits On March 26, 2026, President Trump issued an executive order (EO) with broad applicability to federal contractors and subcontractors, but certain agreements would not likely be covered by the EO, including Other Transaction Agreements (OTAs), cooperative agreements, and grants. The EO defines “racially discriminatory DEI activities” as disparate treatment based on race or ethnicity across hiring , promotions, vendor agreements, training, and program participation—a notable departure from earlier EOs that used the phrase “unlawful DEI” without defining it. Enforcement authority appears to rest with individual contracting agencies, which may terminate or suspend contracts and initiate deba...