BREAKING NEWS: Trump Executive Order Eliminates Affirmative Action Requirements for Federal Contractors

On January 21, 2025, President Trump issued several Executive Orders, including the “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (the “Order”), which can be read here. The Order purports to revoke several previous Executive Orders dating back to those passed in 1965 in the wake of the passage of the Civil Rights Act, including Executive Order 11246, which imposed certain affirmative action obligations on federal contractors and subcontractors. Going forward, all federal offices, including the Office of Federal Contract Compliance Programs (“OFCCP”), are explicitly prohibited from “all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders and requirements. It further orders all agencies to enforce longstanding civil-rights laws and to combat illegal private-sector DEI preferences, mandates, policies, programs and activities.”

As to the OFCCP, the Order directs “immediately cease: (A) promoting ‘diversity’; (B) holding federal contractors responsible for ‘affirmative action’ goals; and (C) allowing or encouraging federal contractors to engage in workforce balancing based on race, color, sex, sexual preference, religion or national origin.” The Order also requires that all federal contractors, subcontractors or grant recipients must certify that they do not operate DEI (diversity, equity & inclusion) programs that violate existing federal discrimination laws. Additionally, the Order states that such DEI certifications are “material” to the government’s bid selection purposes, thus making a false certification a violation of the False Claims Act. Violations of the False Claims Act can subject private entities to whistleblower suits and statutory damages.

Analysis: The Trump administration has made clear that the scope of the Order goes beyond the modern understanding of DEI programs and arguably could apply to all post-1965 executive orders or agency actions which are not enshrined into law. At this early stage of the new administration, it remains unclear to what extent the Order will be enforced by the executive branch, its agencies and federal courts.

Downey & Lenkov encourages all federal contractors to work to review their existing internal programs, contracts or other such efforts to determine if they comply with the Order and federal law. We offer both construction and employment practice groups who would be happy to assist you with this review.

Chicago, Illinois 312-377-1501 | Crown Point, Indiana 219-488-2590
Indianapolis, Indiana 219-488-2590 | Milwaukee, Wisconsin 414-758-3367

Chicago, Illinois

312-377-1501


Crown Point, Indiana

219-488-2590


Indianapolis, Indiana

219-488-2590


Milwaukee, Wisconsin

414-758-3367