The New Rules of Federal Contracting: Redefining DEI Compliance

Polsinelli – On March 26, 2026, President Trump issued Executive Order (EO) 14398, titled Addressing DEI Discrimination by Federal Contractors, ordering federal executive departments and agencies to ensure federal contracts do not include “racially discriminatory DEI activities.” To that effect, within 30 days of the EO, federal agencies are directed to incorporate a specific clause in their federal contracts, requiring contractors to agree, among other things, not to engage in racially discriminatory DEI activities and to furnish all information and reports as required by the contracting agency to determine compliance with the prohibition.