Throughout 2025, the Trump Administration communicated that it considered Diversity, Equity, and Inclusion (DEI) programs legally suspect. Executive Order 14173 declared that DEI programs “violate the text and spirit of our longstanding Federal civil-rights laws” and directed agencies to “combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.” The EO invoked the False Claims Act to signal substantial financial exposure for federal contractors, and the Department of Justice established a Civil Rights Fraud Initiative to pursue claims. Throughout 2025, federal agencies presented Government contractors with EO 14173 certifications, requiring contractors to agree that compliance with federal antidiscrimination laws is material to the Government’s payment decisions under the FCA and attesting that any DEI programs do not violate federal antidiscrimination law. Many companies responded by undertaking privileged reviews of their DEI programs and, in some cases, rolling them back.
Originally Published in The Government Contractor - March 11, 2026.
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