President Trump issued an Executive Order (EO), "Addressing DEI Discrimination by Federal Contractors," on March 26, 2026. This EO adds to several executive orders previously issued by the President aimed at dismantling Diversity, Equity, and Inclusion (DEI) programs within the federal government and among private-sector federal contractors. This order represents a major escalation by moving from general policy statements to enforceable contract terms. The new EO orders federal agencies to include by April 6 a mandatory clause in all new and existing contracts (and subcontracts at all tiers) prohibiting "racially discriminatory DEI activities".


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The Department of Justice (DOJ) issued a directive on July 29, 2025, clarifying how federal antidiscrimination laws apply to Diversity, Equity, and Inclusion (DEI) programs, particularly for recipients of federal funding. The guidance asserts that any program or policy—regardless of its stated goals or labels—must comply with federal laws prohibiting discrimination based on race, sex, religion, national origin, or other protected characteristics. The memo builds on prior executive orders and emphasizes that entities receiving federal funds, including educational institutions, government contractors, and nonprofits, may face enforcement actions or loss of funding if they engage in practices deemed discriminatory.


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