[Federal Register Volume 91, Number 61 (Tuesday, March 31, 2026)]
[Presidential Documents]
[Pages 16147-16149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-06286]
[[Page 16145]]
Vol. 91
Tuesday,
No. 61
March 31, 2026
Part III
The President
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Executive Order 14398--Addressing DEI Discrimination by Federal
Contractors
Presidential Documents
Federal Register / Vol. 91 , No. 61 / Tuesday, March 31, 2026 /
Presidential Documents
___________________________________________________________________
Title 3--
The President
[[Page 16147]]
Executive Order 14398 of March 26, 2026
Addressing DEI Discrimination by Federal
Contractors
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the Federal Property and
Administrative Services Act (40 U.S.C. 101 et seq.)
(FPASA), it is hereby ordered:
Section 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 by elevating immutable
characteristics over job performance; and jeopardizing
the sort of employee collaboration and problem-solving
that is essential to fostering efficient and high-
quality work. DEI activities also create unnecessary
costs by reducing the pool of available labor by
artificially limiting companies to hiring or promoting
certain individuals, suppliers, or intermediaries based
on their race or ethnicity. These costs are inevitably
passed on to the Federal Government when it contracts
with companies who engage in racially discriminatory
DEI activities, or who use subcontractors who do so.
It is therefore the policy of the United States to
promote economy and efficiency in Federal contracting
by preventing racial discrimination.
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.
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);
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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 Executive Order of March 26, 2026
(Addressing DEI Discrimination by Federal Contractors),
for purposes of ascertaining compliance with this
clause;
3. In the event of the contractor's or a
subcontractor's noncompliance with this clause, this
contract may be canceled, terminated, or suspended in
whole or in part, and the contractor or subcontractor
may be declared ineligible for further Government
contracts;
4. The contractor will report any subcontractor's known
or reasonably knowable conduct that may violate this
clause to the contracting department or agency and take
any appropriate remedial actions directed by the
contracting department or agency;
5. The contractor will inform the contracting
department or agency if a subcontractor sues the
contractor and the suit puts at issue, in any way, the
validity of this clause; and
6. The contractor recognizes that compliance with the
requirements of this clause are material to the
Government's payment decisions for purposes of section
3729(b)(4) of title 31, United States Code (False
Claims Act).''.
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 racially
discriminatory DEI activities based on current or past
conduct and issue additional guidance to contracting
agencies regarding best practices to ensure compliance
with this order within such sectors.
(c) Within 120 days of the date of this order, each
agency head shall review the agency's implementation of
section 3 of this order and report to the Assistant to
the President for Domestic Policy regarding its
compliance with that section. Thereafter, each agency
head shall regularly review and take appropriate
measures to ensure such compliance.
(d) The Attorney General, in consultation with
relevant contracting agencies, shall:
(i) consider whether to bring actions under the False Claims Act against
any contractors or subcontractors that violate the clause described in
section 3 of this order; and
(ii) ensure prompt review of civil actions brought by private persons under
31 U.S.C. 3730(b)(1) concerning Federal contracts or subcontracts,
including by rendering a decision on whether to proceed with an action
under 31 U.S.C. 3730(b)(4), to the maximum extent practicable, within the
60-day period described in 31 U.S.C. 3730(b)(2).
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
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(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.
Sec. 6. Severability. 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.
Sec. 7. General Provisions. (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.
(Presidential Sig.)
THE WHITE HOUSE,
March 26, 2026.
[FR Doc. 2026-06286
Filed 3-30-26; 11:15 am]
Billing code 4410-CW-P