U.S. President Donald Trump signed an executive order on Thursday barring federal contractors from engaging in what the administration described as “racially discriminatory” diversity, equity and inclusion practices, mandating new contract provisions and expanded enforcement.
The order requires federal contracts to include clauses prohibiting certain DEI activities and authorizes agencies to suspend or terminate agreements with noncompliant contractors, according to details of the directive.
“We will terminate every diversity, equity and inclusion program across the entire federal government,” Trump stated.
The directive also instructs the U.S. Department of Justice to review potential violations and pursue enforcement actions, including under the False Claims Act, a law used to penalize fraud against the federal government.
Officials said the policy is intended to reinforce merit-based hiring and eliminate DEI initiatives that they argue impose costs and may violate civil rights laws.
The policy also instructs regulators to update federal acquisition rules and calls for closer scrutiny of industries at higher risk of violating the directive.
