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New Executive Order Targets “Racially Discriminatory DEI Activities” By Federal Contractors
President Trump's Executive Order 14398 mandates that federal contractors affirmatively certify they do not engage in racially discriminatory DEI activities, with noncompliance potentially triggering contract termination, debarment, and False Claims Act liability. The order requires agencies to incorporate a new compliance clause into all federal contracts by April 25, 2026, creating immediate compliance obligations for contractors and subcontractors across the federal procurement landscape.

Ballard Spahr LLP
