Donald Trump signed Executive Order 14398 on March 26, 2026. The order says the federal government should promote “economy and efficiency” in contracting by stopping what it defines as racially discriminatory DEI activities by federal contractors and subcontractors. In practice, it does that by requiring agencies to add a new contract clause, giving agencies and the Justice Department enforcement tools, and directing the federal contracting system to formally incorporate the new rule. What the order actually does The order defines “racially discriminatory DEI activities” as disparate treatment based on race or ethnicity in recruitment, employment, contracting, program participation, or the
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