Addressing DEI Discrimination by Federal Contractors
Record date: 2026-03-31
Executive Order 14398 of March 26, 2026 Addressing DEI Discrimination by Federal Contractors By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Property and Administrative Services Act ( 40 U.S.C. 101 et seq. ) (FPASA), it is hereby ordered: Section 1 . Policy and Purpose. My Administration has made significant progress in ending racial discrimination in American society, including so-called “diversity, equity, and inclusion” (DEI) activities in which employees, applicants, or contracting parties are treated differently,
What this record contains
- Federal Register document
- 2026-06286
- Publication date
- 2026-03-31
- Citation
- 91 FR 16147
- Issuing office
- Executive Office of the President
Official record excerpt
Executive Order 14398 of March 26, 2026 Addressing DEI Discrimination by Federal Contractors By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Property and Administrative Services Act ( 40 U.S.C. 101 et seq. ) (FPASA), it is hereby ordered: Section 1 . Policy and Purpose. My Administration has made significant progress in ending racial discrimination in American society, including so-called “diversity, equity, and inclusion” (DEI) activities in which employees, applicants, or contracting parties are treated differently, separated, or singled out based on their race or ethnicity, rather than treated equally and objectively based on their merit and without regard to their immutable characteristics. Despite this progress, some entities continue to engage in DEI activities and often attempt to conceal their efforts to do so. DEI activities are not only unethical and often illegal, but also cause inefficiencies, waste, and abuse within entities that engage in such practices. Specifically, DEI activities impose artificial costs in hiring, promotion, and operations by precluding implementation of merit-based principles; creating excessive workforce turnover by elevating immutable characteristics over job performance; and jeopardizing the sort of employee collaboration and problem-solving that is essential to fostering efficient and high-quality work. DEI activities also create unnecessary costs by reducing the pool of available labor by artificially limiting companies to hiring or promoting certain individuals, suppliers, or intermediaries based on their race or ethnicity. These costs are inevitably passed on to the Federal Government when it contracts with companies who engage in racially discriminatory DEI activities, or who use subcontractors who do so. It is therefore the policy of the United States to promote economy and efficiency in Federal contracting by preventing racial discrimination. Sec. 2 . Definitions. (a) For the purposes of this order, “racially discriminatory DEI activities” means disparate treatment based on race or ethnicity in the recruitment, employment ( e.g., hiring, promotions), contracting ( e.g., vendor agreements), program participation, or allocation or deployment of an entity's resources. (b) “Program participation” means membership or participation in, or access or admission to: training, mentoring, or leadership development programs; educational opportunities; clubs; associations; or similar opportunities that are sponsored or established by the contractor or subcontractor. Sec. 3 . Requirements for Federal Contractors. Within 30 days of the date of this order, executive departments and agencies, including independent establishments subject to FPASA, 40 U.S.C. 102(4)(A) (agencies), shall, to the extent permitted by law, ensure that contracts and contract-like instruments, including contractors' subcontracts and subcontractors' lower-tier subcontracts, include the following clause: “In connection with the performance of work under this contract, [the contractor/appropriate party (contractor)] agrees as follows: 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); ( printed page 16148) 2. The contractor will furnish all information and reports, including providing access to books, records, and accounts, as required by the contracting agency pursuant to the Executive Order of March 26, 2026 (Addressing DEI Discrimination by Federal Contractors), for purposes of ascertaining compliance with this clause; 3. In the event of the contractor's or a subcontractor's noncompliance 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 further 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 appropriate 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 puts at issue, in any way, the validity of this clause; and 6. The contractor recognizes that compliance with the requirements of this clause are 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 issue guidance to contracting agencies to ensure compliance with this order. Consistent with any such guidance provided, contracting agencies shall: (i) cancel,
The excerpt is reproduced from the public federal record and may omit later sections, tables, signatures or attachments. Open the official source for the complete text.
Questions for accountability
- What legal authority does this government action cite?
- Which agencies or officials were directed to act?
- What measurable implementation, cost, deadline or later court action followed?
How to use this page
This is a source-record entry, not a truth-rating by itself. It preserves the action, date and original government publication so it can be connected to later claims, implementation records, court decisions, costs and measurable outcomes. Editorial claim reviews on this site use separate finding labels and explain the evidence for those findings.