President Donald Trump signed an executive order on March 26, 2026, prohibiting federal contractors and subcontractors from engaging in diversity, equity, and inclusion (DEI) practices. The order directs the Office of Management and Budget to provide compliance guidance to federal agencies and identify economic sectors involved in DEI. Agencies are instructed to cancel, terminate, or suspend contracts with non-compliant contractors.
The order also requires federal contracts to include clauses prohibiting DEI practices. The U.S. attorney general is tasked with reviewing violations and ensuring prompt review of civil rights actions brought by private individuals. This follows a previous executive order from last year, which directed government agencies to dismantle DEI policies in both the public and private sectors.
Civil rights advocates argue that DEI practices address historic inequities for marginalized groups, including women, LGBT individuals, and ethnic minorities. Supporters of the order, including Trump, characterize DEI as anti-merit and discriminatory against groups like white people and men.
The order outlines penalties for non-compliance, including contract termination and debarment from federal contracting. The White House fact sheet specifies that the Office of Management and Budget will issue further guidance to ensure enforcement across agencies.