By the authority granted to me as President under the Constitution and U.S. laws, including the Federal Property and Administrative Services Act (40 U.S.C. 101 et seq.) (FPASA), I hereby issue the following order:
Section 1. Policy and Purpose. My Administration has made strides in combating racial discrimination in American society, particularly in relation to “diversity, equity, and inclusion” (DEI) activities. These activities often involve treating employees, applicants, or contracting parties differently based on race or ethnicity, rather than assessing them based on merit and without regard to immutable characteristics. Despite our progress, some organizations continue to engage in DEI activities and sometimes even attempt to hide these practices.
DEI activities are not only unethical and potentially illegal, but they also lead to inefficiencies, waste, and abuse within organizations that practice them. Specifically, these activities create artificial costs in hiring, promotion, and operations by preventing the use of merit-based principles. They result in high workforce turnover by prioritizing immutable characteristics over job performance, and they hinder the employee collaboration and problem-solving necessary for efficient, high-quality work. Furthermore, DEI activities unnecessarily reduce the labor pool by limiting companies to hiring or promoting certain individuals, suppliers, or intermediaries based on race or ethnicity. These costs ultimately burden the Federal Government when it contracts with companies that engage in racially discriminatory DEI activities or who use subcontractors that do so.
Therefore, it is U.S. policy to enhance economy and efficiency in Federal contracting by eliminating racial discrimination.
Sec. 2. Definitions. (a) For the purposes of this order, “racially discriminatory DEI activities” refer to disparate treatment based on race or ethnicity in recruitment, employment (e.g., hiring, promotions), contracting (e.g., vendor agreements), program participation, or the allocation or deployment of an entity’s resources.
(b) “Program participation” includes membership or participation in, or access or admission to, training, mentoring, or leadership development programs; educational opportunities; clubs; associations; or similar opportunities sponsored or established by the contractor or subcontractor.
Sec. 3. Requirements for Federal Contractors. Within 30 days from the date of this order, executive departments and agencies, including independent establishments under FPASA, 40 U.S.C. 102(4)(A) (agencies), must, as permitted by law, ensure that contracts and equivalent instruments, including contractors’ subcontracts and subcontractors’ lower-tier subcontracts, incorporate the following clause:
“In executing work under this contract, [the contractor/appropriate party (contractor)] agrees to the following:
1. The contractor will not engage in any racially discriminatory DEI activities, as defined in section 2 of the Executive Order of March 26, 2026 (Addressing DEI Discrimination by Federal Contractors);
2. The contractor will provide all requested information and reports, including access to books, records, and accounts, as required by the contracting agency under the Executive Order of March 26, 2026 (Addressing DEI Discrimination by Federal Contractors), for the purpose of verifying compliance with this clause;
3. If the contractor or a subcontractor fails to comply with this clause, this contract may be canceled, terminated, or suspended in whole or in part, and the contractor or subcontractor may be declared ineligible for future Government contracts;
4. The contractor will report any subcontractor’s known or reasonably knowable conduct that may violate this clause to the contracting department or agency and take any remedial actions directed by the contracting department or agency;
5. The contractor will inform the contracting department or agency if a subcontractor sues the contractor and the suit challenges, in any way, the validity of this clause; and
6. The contractor acknowledges that compliance with the requirements of this clause is material to the Government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code (False Claims Act).”
Sec. 4. Penalties. (a) The Director of the Office of Management and Budget shall provide guidance to contracting agencies to ensure compliance with this order. As part of this guidance, contracting agencies shall:
(i) Cancel, terminate, suspend, or cause to be canceled, terminated, or suspended, any contract or contract-like instrument, or any portion thereof, for the contractor’s or subcontractor’s failure to comply with the clause outlined in section 3 of this order; and
(ii) Take appropriate action to suspend and debar contractors or subcontractors for such failures to comply.
(b) The Director of the Office of Management and Budget, in coordination with the Attorney General, the Assistant to the President for Domestic Policy, and the Chairman of the Equal Employment Opportunity Commission, shall identify economic sectors at risk of racially discriminatory DEI activities based on past or current conduct and provide additional guidance to contracting agencies on best practices for compliance within such sectors.
(c) Within 120 days of this order, each agency head shall review the agency’s implementation of section 3 of this order and report to the Assistant to the President for Domestic Policy on its compliance. Thereafter, each agency head shall regularly review compliance and take necessary measures to ensure it.
(d) The Attorney General, in consultation with relevant contracting agencies, shall:
(i) Consider whether to initiate actions under the False Claims Act against any contractors or subcontractors that violate the clause specified in section 3 of this order; and
(ii) Ensure prompt review of civil actions brought by private persons under 31 U.S.C. 3730(b)(1) concerning Federal contracts or subcontracts, including by deciding on whether to proceed with an action under 31 U.S.C. 3730(b)(4) within the 60-day period described in 31 U.S.C. 3730(b)(2), to the maximum extent practicable.
Sec. 5. Regulations and Implementation. (a) The Federal Acquisition Regulatory Council, to the extent permitted by law, shall amend the Federal Acquisition Regulation to:
(i) Incorporate in Federal procurement, solicitations, and contracts subject to this order the clause detailed in section 3 of this order; and
(ii) Remove any provisions that conflict with or are inconsistent with the clause in section 3 of this order.
(b) The Federal Acquisition Regulatory Council shall, within 60 days of this order, issue deviation and interim guidance under subpart 1.4 of the Federal Acquisition Regulation, as appropriate and consistent with applicable law, regarding agency implementation of the clause in section 3 of this order before completing the amendments under subsection (a) of this section.
Sec. 6. Severability. If any provision of this order or its application to any person or circumstance is found to be invalid, the remainder of this order and its application to other persons or circumstances shall remain unaffected.
Sec. 7. General Provisions. (a) Nothing in this order shall impair or otherwise affect:
(i) The authority granted by law to an executive department, agency, or its head; or
(ii) The functions of the Director of the Office of Management and Budget related to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publishing this order shall be borne by the Department of Justice.
DONALD J. TRUMP
THE WHITE HOUSE,
March 26, 2026.
