Executive Order 14173 · Signed Jan 21, 2025

90 FR 8633 · Published Jan 31, 2025 · Effective on signing

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Ending Illegal Discrimination and Restoring Merit-Based Opportunity

civil rightsaffirmative actionDEI policyfederal contractinghigher education

Signed by President Donald Trump

The order revokes Executive Order 11246 — the 1965 foundation for federal-contractor affirmative action — along with several other DEI-related executive actions, and immediately directs all federal agencies to terminate DEI programs, preferences, and mandates. It requires every future federal contract and grant to include terms certifying the recipient runs no DEI programs that violate anti-discrimination law.

It is the first executive order to dismantle the 60-year legal framework compelling federal contractors to take affirmative action, and it launches a government-wide push to identify and potentially investigate major private-sector DEI programs as unlawful discrimination.

What this order does

What it orders

The order revokes Executive Order 11246 (the 1965 order requiring federal contractors to take affirmative action), as well as EOs on environmental justice, federal-workforce diversity, and a 2016 national-security-workforce diversity memorandum. It directs all executive agencies to immediately terminate DEI programs, preferences, guidance, and mandates. The Office of Federal Contract Compliance Programs (OFCCP) must immediately stop promoting diversity, enforcing affirmative action obligations, or allowing workforce balancing by race, sex, religion, or national origin. All future contracts and grant awards must include a clause making anti-discrimination compliance material to payment under the False Claims Act, and a certification that the recipient operates no DEI programs violating federal law. The Director of OMB must scrub DEI references from all acquisition, contracting, and financial-assistance guidance.

Within 120 days, the Attorney General must submit a strategic enforcement plan to the Domestic Policy Assistant identifying the most significant private-sector DEI practitioners, up to nine potential civil compliance investigations of major corporations, nonprofits, foundations, and universities, and litigation and regulatory options. The Attorney General and Secretary of Education must jointly issue guidance within 120 days to federally funded K-12 agencies and higher-education institutions on compliance with the Supreme Court's Students for Fair Admissions ruling. Federal contractors have a 90-day grace period to wind down from the prior regulatory scheme. The order exempts veterans' preferences, First Amendment speech, and academic instruction about DEI topics.

Who it affects

All federal agencies and their workforces, federal contractors and subcontractors of all sizes, recipients of federal grants and financial assistance, major corporations, large nonprofits and foundations, state and local bar and medical associations, institutions of higher education with large endowments, and K-12 school systems receiving federal funds.

Why it matters

Federal contractors that maintained affirmative action programs face new certification requirements on every contract, with False Claims Act exposure for noncompliance. University and K-12 DEI programs tied to federal funding must be reviewed for legality. Major corporations, foundations, and professional associations face the prospect of targeted federal civil compliance investigations.

What must happen and when

How the order is supposed to work

The OFCCP changes are immediate; contractors get a 90-day wind-down window before the prior regulatory scheme expires. New contract and grant terms take effect for all future awards, creating a payment-materiality hook under the False Claims Act. OMB drives the government-wide scrub of acquisition guidance, coordinating with the AG. The AG's 120-day report feeds a strategic enforcement pipeline — sector identification leads to investigation targets, which feed potential litigation referrals and regulatory action. The order contains a standard severability clause and a general-provisions carve-out preserving existing statutory authority.

Actions and deadlines

  • OFCCP immediately ceases promoting diversity, requiring affirmative action, and allowing workforce balancing by protected classNo deadline specified
  • Agency heads include anti-discrimination materiality and DEI-certification terms in all contract and grant awardsNo deadline specified
  • Federal contractors may continue complying with the prior regulatory scheme during transition windowWithin 90 days of signing
  • OMB Director reviews and revises government-wide processes to excise DEI references from acquisition and contracting guidanceNo deadline specified
  • Attorney General submits strategic enforcement plan targeting private-sector DEI, including up to nine potential civil compliance investigations per agencyWithin 120 days of signing
  • Attorney General and Secretary of Education jointly issue SFFA compliance guidance to federally funded K-12 agencies and higher-education institutionsWithin 120 days of signing

Agencies directed to act

Office of Federal Contract Compliance ProgramsOffice of Management and BudgetDepartment of JusticeDepartment of EducationAll executive departments and agencies

Authority and reach

Authorities cited

Article II

Constitutional grant of executive power to the President.

31 U.S.C. § 3729(b)(4)

False Claims Act provision defining when a contractor's regulatory compliance is material to federal payment decisions.

What this order changes

Revokes Executive Order 11246

Executive Order

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Executive Order 14173: Ending Illegal Discrimination and Restoring Merit-Based Opportunity | EO Reporter