Trump Signs Executive Order Ending DEI Practices in Federal Contracting

President Trump signed an executive order prohibiting racially discriminatory DEI practices by federal contractors and their subcontractors, requiring a DEI-discrimination clause in contracts under the Federal Property and Administrative Services Act, directing the OMB to issue compliance guidance and identify risky sectors, and allowing contract termination, suspension, or debarment for noncompliance. The order also directs the Attorney General to pursue False Claims Act actions and to align Federal Acquisition Regulations to enforce the ban, framing DEI as costly and counter to merit-based, efficient government contracting; it forms part of a broader effort to end DEI across the federal government.