CBCFEXECUTIVEORDERTRACKER
DateIssued:March26,2026
Topic:DEI,EconomicOpportunity
WHATDOESTHISEXECUTIVEORDERDO?
Thisexecutiveorderseekstodisincentivizefederalcontractorsand subcontractorsfromparticipatingindiversity,equity,andinclusion(DEI) practicesbythreateningtoterminatetheircontractsandprosecute themforfraudiftheyarefoundtobeengagingin“racially discriminatory”DEIpractices.
TheordercontinuesPresidentTrump’seffortstoeliminateDEIpractices, characterizingthemas“unethicalandoftenillegal.”
HOWWILLTHISEXECUTIVEORDERBEENFORCED?
ThisexecutiveorderwillbeenforcedbyallCabinetSecretariesand federalagencyheads.
Theorderdirectsallexecutivedepartmentsandagenciestoadda clauseintheircontractsthatprohibitscontractorsandsubcontractors fromengagingin“raciallydiscriminatory”DEIactivities,definedas “disparatetreatmentbasedonraceorethnicityintherecruitment, employment,contracting,programparticipation,orallocationor deploymentofanentity’sresources,”within30daysoftheorder’s issuance.
Within120daysofthedateofthisorder,eachagencyheadmust reportcompliancetotheAssistanttothePresidentforDomestic Policy.
HOWWILLTHISEXECUTIVEORDERBEENFORCED?
Theorderinstructsfederalcontractorsandsubcontractorstoprovideall information,reports,andaccesstofinancialrecordsandaccountstothe governmenttoassesscompliancewiththisclause.Theorderdirectsthe DirectoroftheOfficeofManagementandBudget(OMBDirector)toissue guidanceforfederalagenciestoevaluatecompliance.
Theorderstipulatesthatacontractor’sorsubcontractor’snoncompliance withthispolicycouldleadtocontractcancellation,termination,or suspension,anddebarmentorineligibilityforfuturegovernment contracts.
Theorderdirectscontractorstoreportanysubcontractors’conductthat violatesthispolicytothecontractingdepartmentoragencyandtake appropriateremedialaction.
TheorderrequirestheOMBDirector,incoordinationwiththeAttorney General,theAssistanttothePresidentforDomesticPolicy,andthe ChairmanoftheEqualEmploymentOpportunityCommission,toidentify economicsectorswhereentitieshavecurrentlyorpreviouslyengagedin “raciallydiscriminatory”DEIactivitiesandissueadditionalguidanceto themtoensurecompliance.
TheorderinstructstheAttorneyGeneral(AG)toconsidertakinglegal actionagainstcontractorsorsubcontractorssuspectedofengagingin raciallydiscriminatoryDEIactivitiesundertheFalseClaimsAct.
TheFalseClaimsActallowsprivatecitizenstotakelegalactionagainst individualsorentitiesthatdefraudthefederalgovernment,withthe oversightoftheDepartmentofJustice.TheorderdirectstheAGtoswiftly reviewtheseclaimsandissueadeterminationwithina60-dayperiod.
TheorderdirectstheFederalAcquisitionRegulatoryCounciltoprohibit “raciallydiscriminatory”DEIactivitiesinfederalprocurement,solicitations, andcontracts,andissueguidanceforagencyimplementationwithin60 daysoftheorder’sissuance.
HOWDOESTHISIMPACTBLACKCOMMUNITIES?
Onthefirstdayofhissecondterm,PresidentTrumpissuedanexecutive ordereliminatingDEIrolesandofficesfromthefederalgovernment,and abolishedprogramsandgrantstargetedtowardsdiversepopulations, includingincontractingandprocurement.SincetheCivilRightsActof 1964prohibitedrace-baseddiscriminationinemployment,thefederal governmenthasbeenasourceofconsistencyandeconomicmobilityfor BlackAmericans,bothasemployeesandcontractors.Withthisexecutive order,theTrumpAdministrationiscreatingbarrierstosuccessforBlack workerswhoreceivefederalfundsandalsowanttofosteraracially diverseworkplace.
Infiscalyear2024,thefederalgovernmentspentapproximately$755 billiononfederalcontracts,ofwhichseveralweresetasidetoprovide opportunitiesforentrepreneursfrommarginalizedbackgrounds.For example,the8(a)BusinessDevelopmentProgramisanine-yearfederal contractingandtrainingprogramforexperiencedsmallbusinessowners fromsociallyandeconomicallydisadvantagedbackgrounds.The programhashistoricallybenefitedBlackAmericansandotherracialand ethnicminorities.However,thisorder’snewguidanceonDEIcould jeopardizetheabilityofraciallydiversecontractorstocontinue governmentbusinessthroughsuchprograms.
MembersoftheCongressionalBlackCaucus(CBC)havespokenout againstPresidentTrump’seffortstoeliminateDEI,highlightingthe importanceofequitablepoliciestoadvanceBlackcommunities.
Rep.YvetteD.Clarke,CBCChair,issuedthefollowingstatementon behalfofthecaucusinresponsetothisexecutiveorder:“Ratherthan focusinghisattentionontheaffordabilitycrisis,PresidentTrump remainscommittedtoattackingcriticaltoolsofeconomicmobilityfor hardworking,everydayAmericans.[...]Diversity,equity,andinclusion practicesarenotonlymutuallybeneficialforabusiness'sfinancial bottomlineanditsemployees,butitisalsoimperativethatthe diversityofourfederalgovernmentanditscontractorsaccurately representthediversityofthepeopleitserves.Itbenefitsabsolutelyno onetoeradicateprogrammingthatimprovestheefficiencyand representationofourdemocracy.”FullStatement