Documents › Executive orders › 14398
Executive Order 14398
Addressing DEI Discrimination by Federal Contractors
Signed March 26, 2026, printed at 91 FR 16147. 5 sections of substance, 1,399 words.
This order is about DEI and federal contracts. It says some DEI work treats people by race. It bars that in federal work.
Sec. 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 objectively based on their merit and without regard to their immutable characteristics. 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 inefficiencies, 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
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 objectively based on their merit and without regard to their immutable characteristics. 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 inefficiencies, 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
This states the case the order makes. It says progress has been made against race discrimination. It names diversity programs as a form of it. It says people are treated apart by race there. It says merit should decide instead. It says some groups still do this and hide it. It says such programs raise costs and cause waste.
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., vendor 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 programs; educational opportunities; clubs; associations; or similar opportunities that are sponsored or established by the contractor or subcontractor.
(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., vendor 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 programs; educational opportunities; clubs; associations; or similar opportunities that are sponsored or established by the contractor or subcontractor.
This defines two terms. The first covers unequal treatment by race. Hiring and promotion are named. So is choosing vendors. So is who joins a program. So is where a firm puts its resources. Program participation means access to training. Mentoring counts. So do leadership programs. So do clubs and school chances the contractor runs.
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 instruments, including contractors' subcontracts and subcontractors' lower- tier subcontracts, include the following clause: ``In connection with the performance of work under this contract, [the contractor/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); [[Page 16148]] 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
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 instruments, including contractors' subcontracts and subcontractors' lower- tier subcontracts, include the following clause: ``In connection with the performance of work under this contract, [the contractor/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); [[Page 16148]] 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
This adds a contract clause. Agencies have 30 days. Contracts must carry it. Subcontracts must carry it too. Lower tiers count as well. The clause bars the race based programs just defined. The contractor must also hand over records if asked. Books and accounts are named. The agency may demand access.
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 subcontractors 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
(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 subcontractors 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
This sets the penalties. The budget office must issue guidance. Agencies must then cancel contracts that breach the clause. Suspending part of a contract is allowed. They must also move to bar such firms from future work. The budget office must also name risky sectors. Justice helps. So do a policy aide and the equal employment commission.
Sec. 5. Regulations and Implementation
(a) The Federal Acquisition Regulatory 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 [[Page 16149]] (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.
(a) The Federal Acquisition Regulatory 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 [[Page 16149]] (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.
This changes the buying rules. A federal council must amend the rule book. The new clause must go into solicitations. Contracts covered by the order must carry it. Rules that clash with it must go. The council has 60 days for interim guidance. That guidance covers the gap. Agencies use it until the rules are amended.
Sec. 6. Severability
Every order carries this. It is not what the order does.
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.
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.
This is the standard severability clause. If a court strikes down part of the order, the rest still stands.
Sec. 7. General Provisions
Every order carries this. It is not what the order does.
(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. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, March 26, 2026. [FR Doc.
(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. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, March 26, 2026. [FR Doc.
This is the closing clause that nearly every order carries. It says the order does not change what the law already allows. It also says no one can sue to enforce it.
How this order is quoted
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