Trump Administration’s Latest Executive Order on DEI Requires Immediate Action for Government Contractors
PilieroMazza – On March 26, 2026, the Trump Administration issued a new Executive Order (EO) targeting diversity, equity, and inclusion (DEI) policies for federal contractors. The EO continues the Trump Administration’s hyper-focused approach towards DEI, which the President equates with “racial discrimination in American society.” It follows a Department of Justice (DOJ) memorandum issued in May 2025, which indicated that the DOJ would use the False Claims Act (FCA) to target DEI policies of federal contractors and companies doing business with the federal government. The Trump Administration’s latest Executive Order on DEI has an immediate impact on federal prime contractors and subcontractors, requiring amendments to existing subcontracts, revisions to internal corporate policies, and imposing FCA liability and administrative penalties for noncompliance.