President Trump Revokes Executive Order 11246

On January 21, 2025, President Donald Trump issued a broad executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” Aimed at “[t]erminating Illegal Discrimination in the Federal Government,” the order revokes a number of previously issued executive orders, including Executive Order 11246, which stood as the underlying authority requiring federal contractors to comply with race and gender affirmative-action obligations.

In revoking Executive Order 11246, the January 21 order provides that while federal contractors may continue to comply with the previous regulatory scheme for 90 days, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) must immediately cease the following:

1. Promoting “diversity”;
2. Holding Federal contractors and subcontractors responsible for taking “affirmative action”; and
3. Allowing or encouraging Federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.

The order requires the head of each agency to include in every contract or grant award: (a) a term requiring the contractor and/or grant recipient to agree that compliance with applicable federal antidiscrimination laws is material to the government’s payment decisions for purposes of False Claims Act liability; and (b) a term requiring the contractor and/or grant recipient to certify that it does not operate any programs promoting diversity, equity and inclusion (DEI) that would violate any applicable federal antidiscrimination laws.

The White House also issued a fact sheet accompanying the presidential action, which provides additional context for the January 21 order, noting the following:

• The Order requires OMB to streamline the federal contracting process to enhance speed and efficiency, reduce costs, and require Federal contractors and subcontractors to comply with civil rights laws.
  • It revokes Executive Order 11246 contracting criteria mandating affirmative action.
  • It bars OFCCP from pushing contractors to balance their workforce based on race, sex, gender identity, sexual preference, or religion.
  • It requires simple and unmistakable affirmation that contractors will not engage in illegal discrimination, including illegal DEI.

Note that the January 21 order does not address affirmative action obligations stemming from the Vietnam Era Veterans’ Readjustment Assistance Act or Section 503 of the Rehabilitation Act of 1973, which prohibit discriminating in employment and require federal contractors to engage in affirmative action to recruit, hire, promote, and retain protected veterans and individuals with disabilities, respectively. These statutes remain in effect and give rise to affirmative action requirements independent of Executive Order 11246.

What’s Next for Federal Contractors?

We are continuing to review the impact of the legal change on the contractor obligations. Federal contractors should stay tuned for additional information in the coming days, and contractors currently undergoing OFCCP audits should consult with legal counsel as to how to proceed.