Executive Order No. 14398. Addressing DEI Discrimination by Federal Contractors

• Citation: 91 FR 16147
• Executive Order No.: 14398
• Published date: 31 March 2026
• Date: 26 March 2026
• FR Document: 2026-06286
• Pages: 16147-16149
• Issuer: Executive Office of the President
• Section: Presidential Documents

Presidential Documents

16147

Federal Register

Vol. 91, No. 61

Tuesday, March 31, 2026

Title 3—

The President

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 objec-

tively based on their merit and without regard to their immutable characteris-

tics. 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 ineffi-

ciencies, 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 individ-

uals, 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., ven-

dor 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 pro-

grams; 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 instru-

ments, including contractors’ subcontracts and subcontractors’ lower-tier sub-

contracts, include the following clause:

‘‘In connection with the performance of work under this contract, [the con-

tractor/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);

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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 Discrimi-

nation 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 con-

tracting 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, terminate, suspend, or cause to be cancelled, terminated, or

suspended, any contract or contract-like instrument, or any portion or

portions thereof, for failure of the contractor or subcontractor to comply

with the clause described in section 3 of this order; and

(ii) take appropriate action to suspend and debar contractors or subcontrac-

tors for such failures to comply.

(b) The Director of the Office of Management and Budget, in coordination

with the Attorney General, the Assistant to the President for Domestic Policy,

and the Chairman of the Equal Employment Opportunity Commission, shall

identify economic sectors that pose a particular risk of entities engaging

in racially discriminatory DEI activities based on current or past conduct

and issue additional guidance to contracting agencies regarding best practices

to ensure compliance with this order within such sectors.

(c) Within 120 days of the date of this order, each agency head shall

review the agency’s implementation of section 3 of this order and report

to the Assistant to the President for Domestic Policy regarding its compliance

with that section. Thereafter, each agency head shall regularly review and

take appropriate measures to ensure such compliance.

(d) The Attorney General, in consultation with relevant contracting agen-

cies, shall:

(i) consider whether to bring actions under the False Claims Act against

any contractors or subcontractors that violate the clause described in sec-

tion 3 of this order; and

(ii) ensure prompt review of civil actions brought by private persons

under 31 U.S.C. 3730(b)(1) concerning Federal contracts or subcontracts,

including by rendering a decision on whether to proceed with an action

under 31 U.S.C. 3730(b)(4), to the maximum extent practicable, within

the 60-day period described in 31 U.S.C. 3730(b)(2).

Sec. 5. Regulations and Implementation. (a) The Federal Acquisition Regu-

latory Council, to the extent permitted by law, shall amend the Federal

Acquisition Regulation to:

(i) provide for inclusion in Federal procurement, solicitations, and contracts

subject to this order the clause described in section 3 of this order;

and

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(ii) remove any provisions that conflict or are inconsistent with the clause

described in section 3 of this order.

(b) The Federal Acquisition Regulatory Council shall, within 60 days

of the date of this order, issue deviation and interim guidance under subpart

1.4 of the Federal Acquisition Regulation, as appropriate and consistent

with applicable law, regarding agency implementation of the clause described

in section 3 of this order before completion of the amendments under

subsection (a) of this section.

Sec. 6. Severability. If any provision of this order, or the application of

any provision to any person or circumstance, is held to be invalid, the

remainder of this order and the application of its provisions to any other

persons or circumstances shall not be affected thereby.

Sec. 7. General Provisions. (a) Nothing in this order shall be construed

to impair or otherwise affect:

(i) the authority granted by law to an executive department, agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and

subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit,

substantive or procedural, enforceable at law or in equity by any party

against the United States, its departments, agencies, or entities, its officers,

employees, or agents, or any other person.

(d) The costs for publication of this order shall be borne by the Department

of Justice.

THE WHITE HOUSE,

March 26, 2026.

[FR Doc. 2026–06286

Filed 3–30–26; 11:15 am]

Billing code 4410–CW–P

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