President Donald Trump Orders Federal Contractors To Remove DEI Practices

President Donald Trump has signed an executive order directing federal contractors and subcontractors to remove diversity, equity, and inclusion (DEI) practices from their operations, according to the White House.

The order requires certain federal contracts to include clauses that bar contractors from engaging in such practices. It also directs the Office of Management and Budget to issue guidance to agencies on implementation and identify sectors where these practices are followed. Federal agencies have been asked to cancel, terminate, or suspend contracts if contractors fail to comply. The order also provides for suspension or debarment of contractors in cases of non-compliance.

The directive instructs the Department of Justice to review violations of contractual terms and examine related civil rights actions.

The move follows earlier steps aimed at removing such policies across government agencies and institutions.