

One week into President Trump’s second term, we’ve seen a bevy of executive actions aimed at reshaping the federal government. Among them is an Executive Order that changes previously-existing affirmative action requirements.
On January 21, 2025, President Trump signed an Executive Order entitled Ending Illegal Discrimination and Restoring Merit-Based Opportunity. This Order declares that “diversity, equity, and inclusion” practices violate federal civil rights laws and undermine equality of opportunity. So, the Order announces that it is the “policy of the United States to protect the civil rights of all Americans,” and thus requires all executive agencies to eliminate DEI-related mandates. Moreover, it requires agencies to “combat illegal private-sector DEI preferences, mandates, programs, and activities.”
To meet these policy objectives, the Order imposes new requirements—or prohibitions—on federal contractors:
Most contractors spent time and energy to ensure they were compliant with anti-discrimination requirements, as they were once understood. But now, contractors must review their internal policies and procedures to ensure they comply with these new requirements (or prohibitions). Failing to do so can have serious consequences: not only might a contractor lose an award, but the government might also pursue False Claims Act liability for any payments deemed improper.
If you have questions about these new anti-discrimination issues, please contact us.