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President Signs Executive Order Dismantling DEI Initiatives Across Federal and Private Sectors

The President of the United States has signed an executive order aimed at ending what the administration calls “illegal discrimination” and dismantling Diversity, Equity, and Inclusion (DEI) practices across federal agencies and the private sector.

The executive order, titled “Ending Illegal Discrimination And Restoring Merit-Based Opportunity,” was signed on January 21, 2025, and outlines a sweeping set of changes to federal policies and practices.

Key Points of the Executive Order

  1. Revocation of Previous Orders: The order revokes several previous executive actions, including those related to environmental justice, diversity in the federal workforce, and equal employment opportunity.
  2. Federal Contracting Changes: The order streamlines the federal contracting process and requires contractors to comply with civil rights laws while ceasing the promotion of “diversity” and “affirmative action”.
  3. Private Sector Impact: The Attorney General is directed to submit a report within 120 days, outlining strategies to encourage the private sector to end what the order terms as “illegal DEI discrimination and preferences”.
  4. Education Sector Guidance: The Attorney General and Secretary of Education are tasked with issuing guidance to educational institutions receiving federal funds regarding compliance with recent Supreme Court decisions on admissions practices.

Revocation of Executive Order 13672

Executive Order 13672, signed by President Obama in 2014, expanded protections for federal contractor employees by prohibiting discrimination based on sexual orientation and gender identity. Its revocation removes these explicit protections for LGBTQ+ workers employed by federal contractors.

Elimination of Diversity Initiatives in National Security

The Presidential Memorandum of October 5, 2016, which promoted diversity and inclusion in the national security workforce, has also been rescinded. This action potentially impacts efforts to increase representation and diverse perspectives within agencies dealing with national security matters.

Dismantling of Executive Order 11246

Perhaps the most sweeping change is the revocation of Executive Order 11246, originally signed by President Lyndon B. Johnson in 1965 This order has been a cornerstone of federal contractor obligations for nearly six decades, requiring affirmative action and prohibiting discrimination based on race, color, religion, sex, and national origin.

Key impacts of revoking Executive Order 11246 include:

  1. Elimination of affirmative action requirements for federal contractors.
  2. Cessation of OFCCP’s authority to enforce diversity and inclusion initiatives.
  3. Removal of the mandate for contractors to develop annual affirmative action plans.

The law still requires contractors to comply with civil rights laws, suggesting that basic non-discrimination principles remain in place, albeit without the previous affirmative action and diversity promotion requirements.

Federal Government and Contractors

The order directly applies to:

  1. Federal agencies and departments, requiring them to terminate all “discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements”.
  2. Federal contractors and subcontractors. It revokes Executive Order 11246, which previously mandated affirmative action requirements for federal contractors.

Private Sector Implications

While not directly regulating all private businesses, the order has broader implications:

  1. It directs federal agencies to take action to “end illegal private-sector DEI preferences, mandates, policies, programs, and activities”.
  2. The Attorney General is required to submit a report within 120 days outlining strategies to encourage the private sector to end what the order terms as “illegal DEI discrimination and preferences”.
  3. Federal agencies are instructed to identify up to nine potential civil compliance investigations of large corporations, non-profits, foundations, and universities with significant assets or endowments.

Certification Requirements

All federal contracts and grants will now require recipients to:

  1. Certify that they do not operate programs promoting DEI “that violate any applicable Federal anti-discrimination laws”.
  2. Agree that compliance with federal anti-discrimination laws is material to payment decisions, potentially exposing non-compliant companies to False Claims Act liability.

While the executive order’s direct regulatory power is limited to federal agencies and contractors, its broader intent is to influence DEI practices across the private sector through enforcement actions, investigations, and potential litigation.

Implementation and Timeline

The order takes effect immediately, with some provisions allowing for a 90-day transition period. Federal agencies are expected to begin implementing changes promptly, while the private sector awaits further guidance and potential enforcement actions.

As this executive order begins to take effect, it is likely to face legal challenges and continued public debate over its implications for workplace diversity and civil rights in the United States.

Precedents for Revoking Civil Rights-Related Executive Orders

  1. In 1935, the Supreme Court overturned five of Franklin D. Roosevelt’s executive orders related to economic policies during the Great Depression.
  2. In 2001, President George W. Bush issued Executive Order 13233, which restricted public access to papers of former presidents. This order was later revoked by President Barack Obama in 2009.
  3. In 2021, President Biden revoked Executive Order 13950, which had placed restrictions on diversity training content for federal agencies, contractors, and grant recipients.
  4. President Trump, upon taking office in 2017, signed numerous executive orders to reverse policies of the Obama administration, including those related to environmental regulations, immigration, and healthcare.
  5. Similarly, President Biden, at the start of his term in 2021, issued a flurry of executive actions to undo many of Trump’s policies, particularly in areas like climate change, racial equity, and immigration.

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