ADDRESSING DEI PRACTICES IN FEDERAL CONTRACTING: Today, President Donald J. Trump signed an Executive Order aimed at removing racially discriminatory “diversity, equity, and inclusion” (DEI) practices among Federal contractors and their subcontractors. This step is intended to promote merit-based and efficient contracting and employment.
- The Order mandates that any Federal contracts under the Federal Property and Administrative Services Act must contain a clause that prohibits contractors and their subcontractors from engaging in racially discriminatory DEI activities.
- The Order instructs the Office of Management and Budget to provide guidelines to contracting agencies, ensuring compliance and identifying economic sectors that are particularly at risk of engaging in discriminatory DEI activities.
- The Order empowers contracting agencies to cancel, terminate, or suspend contracts, and to suspend or debar contractors that fail to adhere to these requirements.
- The Order calls on the Attorney General to focus on potential claims under the False Claims Act against contractors or subcontractors violating these terms, ensuring swift review of related civil actions brought by private individuals.
- The Order directs the Federal Acquisition Regulatory Council to adjust Federal Acquisition Regulations to include this clause and eliminate any conflicting terms.
ENSURING MERIT AND EFFICIENCY IN FEDERAL CONTRACTING: President Trump emphasizes that the Federal Government will uphold equal legal treatment for all Americans, irrespective of race or ethnicity, and will expect its contractors to do the same.
- DEI practices impose financial burdens on Americans by restricting the labor pool, increasing hiring and operational costs, and creating inefficiencies that ultimately affect Federal agencies and taxpayers.
- These programs elevate immutable characteristics over job performance, leading to increased workforce turnover and risking employee collaboration and problem-solving, which are crucial for efficient, high-quality work.
- Some organizations, including government contractors, have continued DEI activities despite efforts by the Administration to eliminate them.
- This Order establishes strong accountability measures to ensure genuine and verifiable compliance.
- Eliminating these practices ensures that taxpayer funds are used efficiently.
FOCUSING ON NATIONAL SERVICE OVER IDEOLOGICAL AGENDAS: President Trump remains committed to eradicating DEI initiatives across the Federal Government.
- In his first week in office, President Trump signed Executive actions to restore merit-based hiring and promotions across the Federal Government, ending what he termed as radical and wasteful DEI programs and policies, including the Federal Aviation Administration’s hiring policy that prioritized DEI over safety and efficiency.
- In January 2025, he signed an Executive Order banning discriminatory race- or sex-based preferences within the Armed Forces, the Department of War, and the Department of Homeland Security, eliminating any remaining DEI elements within these departments.
- In March 2025, a memorandum was signed to remove radical DEI from the Foreign Service.
- In April 2025, an Executive Order was issued to eliminate disparate-impact liability in various contexts, ensuring equal treatment under the law.
- Another April 2025 Executive Order aimed at restoring safety and order in American classrooms by basing school discipline policies on objective behavior rather than DEI.
- In July 2025, an Executive Order was issued to ensure that AI models procured by the Federal Government prioritize truthfulness and ideological neutrality over DEI.
- In December 2025, an Executive Order was signed to reduce the influence of proxy advisors that prioritize political agendas like DEI and ESG over investor returns.
- President Trump stated: “We will terminate every diversity, equity, and inclusion program across the entire Federal Government.”
