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Ending Illegal Discrimination And Restoring Merit-Based Opportunity ![]() | |
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![]() Front page of Executive Order 14173 | |
Type | Executive order |
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Number | 14173 ![]() |
President | Donald Trump ![]() |
Signed | January 21, 2025 |
Federal Register details | |
Federal Register document number | 2025-02097 ![]() |
Publication date | January 21, 2025 ![]() |
Summary | |
Prohibits private organizations from conducting any Diversity, Equity, Inclusion, and Accessibility employment programs for jobs created by federal contracts |
Executive Order 14173, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity", is an executive order signed by Donald Trump, the 47th President of the United States, on January 21, 2025. [1]
The order revoked Executive Order 11246, as amended by Executive Orders 11375, 12086, 13279, 13280, 13496, 13665, and 13672, which had required federal contractors and subcontractors with contracts exceeding $10,000 to refrain from discrimination in hiring, promotion, compensation, and other employment practices on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. [2]
Federal Acquisition Regulation (FAR) clauses 52.222-9, 52.222-21 through 52.222-27, and 52.222-29, as well as FAR Subpart 22.8, were rendered unenforceable under new or modified federal contracts, subcontracts, and solicitations. Executive Order 14173 also revoked Executive Orders 12898 and 13583, as well as the Presidential Memorandum of October 5, 2016.
The order centralized authority for enforcing anti-discrimination requirements in procurement to the Department of Labor (DOL)'s Office of the Assistant Secretary for Policy, stripping interpretive authority from the Office of Federal Contract Compliance Programs (OFCCP), Environmental Protection Agency, and civil rights offices of other federal agencies. [3]
It revoked the amendment made by Executive Order 13672 to Executive Order 11478, thereby eliminating the provision that equal employment opportunity shall be provided to federal civilian employees without discrimination based on gender identity. As a result, the U.S. Office of Personnel Management (OPM) lost its regulatory authority to issue regulations, guidance, or technical assistance specific to nondiscrimination based on gender identity in federal hiring, promotion, or personnel practices. It also no longer has the authority to evaluate agency compliance with such protections, develop training or diversity initiatives to support transgender and gender non-conforming individuals, or require agencies to report demographic data related to gender identity. Additionally, OPM's ability to coordinate with the Equal Employment Opportunity Commission (EEOC) on gender identity-related matters in the federal workforce has been curtailed.
The order also required agencies to terminate existing diversity, equity, inclusion, and accessibility (DEIA or DEAI) mandates that were deemed discriminatory or unlawful. The Office of Management and Budget and the United States Attorney General were tasked with reviewing and revising acquisition, grant, and assistance procedures to remove DEI-related language. Agency heads were directed to promote merit-based principles, and the United States Department of Justice and United States Department of Education were instructed to issue new guidance consistent with the Supreme Court of the United States' decision in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College .
Some critics argued that the order could reduce protections for minority groups and diminish diversity initiatives in federal contracting and employment. Commentators suggested it may make it more difficult for underrepresented individuals to access equal employment opportunities. [4] [5]
On January 23, 2025, the Office of Federal Contract Compliance Programs (OFCCP) issued a bulletin that for 90 days, until April 21, 2025, federal contractors may voluntarily keep following the same regulatory rules that were in place on January 20, 2025, even though those rules are no longer required. The bulletin also directed the agency to immediately cease promoting diversity initiatives, enforcing affirmative action obligations, and encouraging workforce balancing based on race, sex, sexual preference, religion, or national origin. [6] On January 24, 2025, Acting Secretary of Labor Vince Micone issued Secretary's Order 03-2025, which directed all United States Department of Labor employees to cease and desist all investigative and enforcement activities under the rescinded Executive Order 11246 and its implementing regulations. [7]
On February 15, 2025, William Clark, Chair of the Civilian Agency Acquisition Council (CAAC), issued CAAC Letter 2025-01 and on February 18, 2025, he issued CAAC Letter 2025-01 Supplement 1, which supersedes CAAC Letter 2025–01. The letter allows federal agencies to issue a class deviation to follow Executive Order 14173. If they do, contracting officers must apply the changes outlined in this letter.
The following Federal Acquisition Regulation (FAR) clauses and provisions listed in CAAC Letter 2025-01 Supplement 1 are to be revoked (reserved) if a federal agency issues a class deviation for new solicitations or contracts:
The following FAR clauses and provisions listed in CAAC Letter 2025-01 Supplement 1 are to be revised to remove the references to the clauses and provisions that were revoked if a federal agency issues a class deviation for new solicitations or contracts:
The letter empathized that contractors must still follow all current U.S. civil rights and anti-discrimination laws, even if they aren't doing business with the federal government. For contracts that are already in place, the letter states federal agencies should decide how best to follow Executive Order 14173. The letter also states federal agencies might have to take further actions to fully meet the requirements of Executive Order 14173. [8] [9]
On February 15, 2025, the General Services Administration issued class deviations for the revoked or revised FAR clauses and provisions in CAAC Letter 2025–01. [10] [11]
The following federal agencies have issued class deviations for the revoked or revised FAR clauses and provisions in CAAC Letter 2025-01 Supplement 1: [12]
Federal contract compliance enforcement process prior to January 21, 2025 |
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Compliance evaluations, complaints or follow-up investigations, data discrepancy triggers, directed investigations, or referrals ↓ Office of Federal Contract Compliance Programs, United States Department of Labor (DOL) → conciliation agreement ↓ Office of the Solicitor, DOL ↓ Office of Administrative Law Judges, DOL ↓ Administrative Review Board, DOL ↓ Employment Litigation Section, Civil Rights Division, United States Department of Justice (DOJ) ↓ United States District Court ↓ Contracting agency → conciliation agreement ↓ Corrective action plan, debarment, public disclosure, modification or suspension of existing contracts, non-compliance penalties for specific programs, referral to the DOJ, referral to the System for Award Management, show-cause notice, suspension, termination, or withholding of payments |
The order requires the government departments to review the hiring practices of businesses and organizations that have been contracted, as well as consider any remedies done after the signing of this order. Federal contractors were given 90 days from the signing of the order to stop DEIA practices. [27] After the review, the departments are to determine whether to continue the contract with the current organization, give the contract to another party, or to cancel the contract. [1] [5]
Due to this many organizations are worried if they might end up losing money from partially completed contracts, if the federal government were to rescind their contract. [4] Because of this, many lawyers have suggested to contracted organizations to be in touch with a law firm immediately. [5] [28]
GSA spokesperson Will Powell stated FAR 52.222-21 was "duplicative" of the Civil Rights Act of 1964 and removed to "streamline" the FAR. [29]
Kara Sacilotto, an attorney at Wiley Rein LLP, a law firm that focuses on federal contracting, believes FAR 52.222-21 was likely flagged by the GSA because of the regulatory amendment on April 8, 2015, which was revised to include protections based on gender identity. This update was part of the implementation of Executive Order 13672 under the Obama administration. However, she notes that President Trump rescinded that executive order via Executive Order 14173. Given Trump's other executive orders about gender identity policies, she suspects that's likely why this particular provision was singled out for removal. [30]