President Donald Trump signed an executive order on March 26 barring federal contractors and subcontractors from engaging in diversity, equity, and inclusion (DEI) practices, according to a White House fact sheet. The order directs the Office of Management and Budget to issue compliance guidance and identify industries where such practices are currently in use.
The directive instructs federal agencies to cancel, suspend, or terminate contracts with companies that fail to eliminate what the administration describes as “racially discriminatory DEI activities.” It also calls on the attorney general to prioritize enforcement of violations tied to DEI policies and to ensure prompt review of civil rights complaints filed by private individuals.
In addition, the order requires the Federal Acquisition Regulatory Council to revise procurement rules to remove provisions that conflict with the administration’s policy. The White House defines DEI-based activities as practices that treat employees or contractors differently based on race or ethnicity rather than merit.
Trump argued that these policies increase workforce turnover and impose unnecessary costs on federal agencies. He said limiting hiring and promotion decisions through DEI considerations reduces the available labor pool, ultimately raising costs that are passed on to taxpayers through federal contracts. He also claimed that some contractors have continued to apply or conceal DEI-related policies despite previous efforts to eliminate them.
Since returning to office in January 2025, Trump has taken broader steps to dismantle DEI initiatives across the federal government. A prior executive order directed agencies to eliminate DEI offices, positions, and performance standards tied to such programs. Trump criticized the previous administration for embedding DEI policies through “Equity Action Plans,” describing them as wasteful and discriminatory.
The president has relied heavily on executive authority, signing more than 240 executive orders since beginning his current term, as legislative progress in Congress has remained limited on several major issues.
In a separate policy area, Trump has also raised concerns about the growing influence of name, image, and likeness (NIL) compensation in college athletics. Speaking at a White House roundtable that included lawmakers, NCAA officials, and sports leaders, he warned that the current system could destabilize both college sports and the broader higher education system.
Trump said he is preparing a comprehensive executive order aimed at prompting congressional action on NIL reform, while acknowledging that such a move could face legal challenges and return the issue to federal courts. He criticized a recent court-approved settlement allowing schools to share revenue directly with athletes, arguing it disrupts the traditional amateur model of college sports. He added that the previous system, centered on scholarships covering tuition, housing, and related expenses, was more sustainable.
