Federal DEI policy changes since January 2025 have dismantled the diversity, equity, and inclusion framework built under the Biden administration and replaced it with a merit-based hiring regime and new restrictions on federal contractors. President Trump revoked Executive Orders 13985, 14035, and 11246, ordered agencies to close DEI offices and eliminate Chief Diversity Officer positions within 60 days, and required federal contracts to include certifications that the contractor does not run DEI programs that violate anti-discrimination law. Title VII, Section 503 of the Rehabilitation Act, and the Vietnam Era Veterans’ Readjustment Assistance Act remain fully in force.
The Executive Orders That Reversed the Framework
Three orders signed in the opening days of the administration did most of the work. Executive Order 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” was signed on January 20, 2025. It directed every agency head to terminate DEI and DEIA offices and positions, cancel equity action plans, end equity-related grants and contracts, and remove DEI performance requirements for employees, contractors, and grantees within 60 days.1The White House. Ending Radical And Wasteful Government DEI Programs And Preferencing
The next day, Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” revoked EO 11246, the 1965 order that had required federal contractors to practice affirmative action in hiring. The Office of Federal Contract Compliance Programs was ordered to immediately stop holding contractors responsible for affirmative action or workforce balancing based on race, color, sex, religion, or national origin. Contractors received a 90-day transition period ending April 21, 2025 to wind down compliance with the old regulatory scheme.2The White House. Ending Illegal Discrimination And Restoring Merit-Based Opportunity
A separate rescission order revoked EO 13985, the Biden order that had directed agencies to advance racial equity by identifying barriers to opportunity in their programs.3Federal Register. Initial Rescissions of Harmful Executive Orders and Actions EO 14035, which had directed the federal government to serve as a model employer for diversity, equity, inclusion, and accessibility, was also revoked.4The American Presidency Project. Executive Order 14035 – Diversity, Equity, Inclusion, and Accessibility in the Federal Workforce
A fourth order, EO 14170, replaced the DEI-oriented hiring approach with a merit-focused Federal Hiring Plan that bars consideration of race, sex, or religion in hiring decisions and sets a governmentwide target of under 80 days to hire.5Federal Register. Reforming the Federal Hiring Process and Restoring Merit to Government Service
What Changed Inside Federal Agencies
Chief Diversity Officer positions across the executive branch were ordered eliminated. Equity action plans developed under EO 13985 were canceled. DEI training programs, equity-related grants, and performance metrics tied to diversity goals were directed to be terminated. The Director of OPM was tasked with reviewing and revising all federal employment practices, union contracts, and training programs to strip out DEI or DEIA factors.1The White House. Ending Radical And Wasteful Government DEI Programs And Preferencing
EO 14151 states that federal employment practices “shall not under any circumstances consider DEI or DEIA factors, goals, policies, mandates, or requirements.” Each agency must give the Office of Management and Budget a detailed accounting of every DEI position, program, budget line, and expenditure that existed as of November 4, 2024, including an assessment of whether any have been “misleadingly relabeled” to preserve their original function. Monthly compliance meetings between the Domestic Policy Council, OMB, OPM, and deputy agency heads track the wind-down.1The White House. Ending Radical And Wasteful Government DEI Programs And Preferencing
One category sits in a different legal space. The Department of Defense Chief Diversity Officer was created by Congress through 10 U.S.C. § 147, not by executive order.6U.S. Government Publishing Office. 10 USC 147 – Chief Diversity Officer Executive orders cannot repeal statutes, so how agencies handle statutory diversity roles under the new policy is an unresolved question.
Specialized hiring authorities grounded in law rather than in the revoked orders continue to operate. Schedule A still allows agencies to hire individuals with intellectual, severe physical, or psychiatric disabilities through a noncompetitive process.7U.S. Office of Personnel Management. Hiring – Disability Employment The Pathways Internship Program and Recent Graduates Program remain active, though the Presidential Management Fellows Program was terminated by a separate executive order in February 2025.8U.S. Office of Personnel Management. Students and Recent Graduates
What Changed for Federal Contractors
Before EO 11246 was revoked, contractors with at least 50 employees and a contract of $50,000 or more had to develop written affirmative action programs analyzing workforce composition and setting goals for underrepresented groups. Those requirements are gone. OFCCP was ordered to stop promoting diversity and to cease enforcing affirmative action obligations tied to EO 11246.2The White House. Ending Illegal Discrimination And Restoring Merit-Based Opportunity
In their place, EO 14173 created a new contract clause. Every federal contract and grant award must now include a term requiring the contractor to certify that it does not operate any DEI programs that violate federal anti-discrimination laws. Compliance with that certification is deemed material to the government’s payment decisions under the False Claims Act, 31 U.S.C. § 3729, which means a false certification can expose the contractor to liability far exceeding the contract itself.2The White House. Ending Illegal Discrimination And Restoring Merit-Based Opportunity
The March 2026 Contractor Order
A second wave arrived on March 26, 2026 with the executive order “Addressing DEI Discrimination by Federal Contractors.” The order defines “racially discriminatory DEI activities” as disparate treatment based on race or ethnicity in recruitment, hiring, promotions, vendor agreements, program participation, or resource allocation. Program participation reaches membership in training, mentoring, leadership development, and educational opportunities the contractor sponsors.9The White House. Addressing DEI Discrimination by Federal Contractors
Within 30 days, agencies were required to add a mandatory clause to all contracts prohibiting those activities. The clause requires contractors to open their books, records, and accounts to the contracting agency for compliance review. Noncompliance can trigger contract cancellation, termination, or suspension, and the contractor can be declared ineligible for future government work. Contractors must also report subcontractor conduct that may violate the clause and notify the agency if a subcontractor sues to challenge it. Compliance is again tied to the False Claims Act.9The White House. Addressing DEI Discrimination by Federal Contractors
Contractor Obligations That Remain
Not everything went away. Section 503 of the Rehabilitation Act still requires federal contractors to take affirmative action to recruit, hire, promote, and retain individuals with disabilities, and the implementing regulations still set a utilization goal of 7% for individuals with disabilities within each job group.10eCFR. 41 CFR Part 60-741 – Affirmative Action and Nondiscrimination Obligations of Federal Contractors and Subcontractors Regarding Individuals with Disabilities The Vietnam Era Veterans’ Readjustment Assistance Act likewise remains in effect, requiring contractors to take affirmative action for protected veterans and to set annual hiring benchmarks.11U.S. Department of Labor. Vietnam Era Veterans Readjustment Assistance Act Regulations Frequently Asked Questions
OFCCP confirmed that Section 503 and VEVRAA enforcement resumed after a temporary hold, with the Secretary of Labor issuing Order 08-2025 to lift the abeyance. The agency administratively closed all pending compliance reviews from the scheduling list released in November 2024 and stated it would take no further action on those reviews. New complaints under Section 503 and VEVRAA are being processed normally.12Office of Federal Contract Compliance Programs. Office of Federal Contract Compliance Programs
Anti-Discrimination Laws That Still Apply
The DEI reversal did not touch the underlying statutory protections against workplace discrimination. Executive orders can redirect agency priorities, but they cannot override acts of Congress. Title VII of the Civil Rights Act still prohibits employment discrimination based on race, color, religion, sex, or national origin, and it reaches federal agencies and private employers alike. Section 503 and VEVRAA continue to impose affirmative action obligations on contractors for disability and veteran hiring. Equal protection guarantees under the Fifth and Fourteenth Amendments are unchanged.
The distinction matters because the new orders use broad language that can create confusion about what private employers may do. Workplace DEI programs remain lawful as a general matter. The executive orders govern what the federal government does internally and what it requires of its contractors; they do not make private-sector diversity programs illegal. Contractors should focus on the specific clauses they are now required to sign and confirm their programs do not involve disparate treatment based on race or ethnicity as defined in the March 2026 order.
Where the Litigation Stands
A federal district court initially issued a preliminary injunction blocking several provisions of EO 14151 and EO 14173. On February 6, 2026, the U.S. Court of Appeals for the Fourth Circuit vacated that injunction, and its published opinion cleared the way for enforcement of the contractor certification requirements and the broader DEI program terminations.
The March 2026 contractor order relies on the Federal Property and Administrative Services Act of 1949 as its legal basis. Courts have sometimes read that statute narrowly when presidents use it to attach policy conditions to federal procurement. As of mid-2026, no court has ruled on the validity of the new contractor clause, though further litigation is expected.
For federal employees, DEI offices, equity plans, and diversity-focused performance metrics are gone from the executive branch. For contractors, the old affirmative action regime under EO 11246 has been replaced by an obligation to certify the absence of racially discriminatory DEI activities, backed by False Claims Act exposure. The disability and veteran frameworks under Section 503 and VEVRAA are the last standing pieces of the federal affirmative action structure, and OFCCP continues to enforce them.