Navigating Trump administration executive orders impacting government contracts.
By Dean Baxtresser, Kyle Jefcoat, and Anne W. Robinson
See EO: Ending Illegal Discrimination and Restoring Merit-Based Opportunity
Date Issued: January 21, 2025
Agency Impacted: All
Summary: This EO rescinds several EOs, including EO 11246, that prohibited federal contractors from discriminating on the basis of race, sex, and national origin and required affirmative action in hiring practices. The EO directs that the employment, procurement, and contracting practices of federal contractors “shall not consider race, color, sex, sexual preference, religion, or national origin in ways that violate the Nation’s civil rights laws.” It orders the Office of Federal Contractor Compliance Programs to “immediately cease” holding contractors responsible for fulfilling “affirmative action” obligations. Contractors must still comply with statutes related to federal affirmative action, nondiscrimination, and reasonable accommodation requirements for disabled individuals and veterans. Agencies must include contract terms requiring a certification that the contractor or grant recipient does not operate DEI programs violating federal anti-discrimination laws and acknowledges the certification is material to payment for purposes of False Claims Act liability.
Timeline: Immediate — termination of listed EOs promoting prior EEO policy. Some agencies, including GSA, have issued notices stating they will not enforce the DEI and affirmative action provisions in current contracts.
- Until April 21, 2025 — Federal contractors may continue to comply with prior EEOC policies.
- As early as April 22, 2025 — Federal contractors may be required to certify they do “not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.” The timing of contracts including this term is unclear, and it is possible that agencies will wait for the FAR Council to promulgate unified language.
Latham & Watkins has a proven track record of guiding clients through transitions in US administrations, leveraging our deep expertise and understanding of the evolving regulatory landscape. In the first week of the Trump Administration, a total of 48 executive orders were issued, marking a significant and rapid commencement of policy changes with potential impacts across business sectors. This package provides a concise analysis by Latham lawyers of 15 key executive orders that are anticipated to have the most substantial business implications.
For a comprehensive list of all executive orders issued, please visit the official White House website.
Additional details about Latham’s capabilities as well as contact information for several Latham lawyers with former government experience or who serve as key contacts in relevant practice areas, can be found at the end of this package.
We welcome the opportunity to connect with you to understand your specific needs and explore how we can assist you in navigating these changes. Please reach out to Latham for more detailed analysis and to stay informed about additional insights as they become available.