Requires federal agencies to prohibit contractors and subcontractors from engaging in “racially discriminatory DEI activities” by mandating a new contract clause across federal procurement. Establishes enforcement mechanisms—including contract termination, suspension, debarment, and potential False Claims Act liability—and directs government-wide regulatory updates to embed these requirements into the Federal Acquisition Regulation (FAR).
The order requires agencies to incorporate the mandated contract clause within 30 days, directs the FAR Council to issue interim guidance within 60 days, and mandates agency compliance reports within 120 days.
Addressing DEI Discrimination by Federal Contractors (Trump EO Tracker)
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