Quick Hit: On March 26, 2026, President Trump signed an Executive Order titled “Addressing DEI Discrimination by Federal Contractors” (the “Order”) which mandates the inclusion of a new clause (the “Clause”) in all covered federal contracts and contract-like instruments prohibiting federal contractors from engaging in “racially discriminatory DEI activities.” The Order directs agencies to enforce the Clause’s requirements through contract cancellation, termination, or suspension, as well as debarment, and calls on the Attorney General to prioritize False Claims Act (“FCA”) suits against noncompliant contractors.
As the Administration’s Fact Sheet regarding the Order notes, the Order is the latest in a series of actions the Trump Administration has taken to curtail what it views as illegal diversity, equity and inclusion (“DEI”) initiatives.
Key Takeaways: At first blush, the Order appears to do little more than formalize previous efforts to address contractors’ DEI activities, primarily Executive Order 14173 (“EO 14173”). EO 14173 provides that federal contractors and grantees are required to certify that they did “not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws,” and to “agree that … compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions for purposes of” the FCA.
However, as detailed below, while the Order mirrors the concepts in EO 14173 and...
The Department of Justice (DOJ) recently provided important information about how it plans to handle the surge in data-driven False Claims Act (FCA) qui tam lawsuits. On April 30, 2026, DOJ announc...