President Trump’s Executive Order 14173 calls for the elimination of what it characterizes as “illegal” DEI programs in the federal government. In addition, by making express references to the False Claims Act, the order provides another avenue for qui tam relators to bring FCA lawsuits and potentially signals increased FCA enforcement for government contractors with DEI programs. This alert provides essential insights and recommendations to help government contractors mitigate these risks and navigate the evolving legal landscape following President Trump’s orders.
Introduction
The False Claims Act (FCA), originally enacted to confront massive fraud committed against the US government during the Civil War, has now been enlisted by the Trump Administration as a tool to combat what it characterizes as “illegal” DEI programs, policies, and mandates in the federal government. On January 21, 2025, President Trump issued Executive Order 14173, titled, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (“EO 14173” or the EO). Nestled within this EO is a directive requiring the head of each executive agency to include two specific terms in every contract or grant award: (1) a term requiring the contractor or grant recipient to “agree that its compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions for purposes” of the FCA;...
The Catholic Archdiocese of Chicago filed a lawsuit last month alleging that a group of conspirators engaged in a racketeering scheme to defraud the archdiocese by falsely claiming priest sexual a...