President Trump’s Executive Order Rescinding Executive Order 11246: What Does this Mean for Federal Contractors?

*Updated on 2.14.25.

On January 21, 2025, President Donald Trump signed an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The executive order dramatically changes diversity, equity and inclusion (DEI) and affirmative action requirements for federal contractors in two primary ways:

• The order revokes Executive Order 11246, which required federal contractors to engage in affirmative action for women and minorities.
• The order prohibits the Office of Federal Contract Compliance Programs (“OFCCP”) from promoting diversity, holding federal contractors responsible for taking affirmative action, and encouraging federal contractors to engage in workforce balancing based upon race, color, sex, sexual orientation, religion, or national origin.

Federal contractors who wish to continue their affirmative action efforts based upon race and sex may do so for an additional 90 days. On or before January 31, 2025, the OFCCP closed all open OFCCP audits under Executive Order 11246. Open audits under Section 503 and VEVRAA are being held in abeyance until further notice.

The order also requires federal contractors to certify that they are not carrying out DEI initiatives that the administration would consider to be illegal. Although the details of the certification process are unknown at this time, it is possible that the process will look similar to the one used in recent years on the OFCCP’s contractor portal, which was used to monitor federal contractors’ compliance with affirmative action obligations. Notably, the contractor portal as we have known it has been removed from the internet. Although we are still waiting for clarity on the certification process regarding DEI, federal contractors should take the time now to review their current DEI programs and policies, specifically focusing on any public-facing communications.

Although the order removes some onerous requirements for federal contractors, the order does not change the following:

• Requirements regarding individuals with disabilities or veterans under Section 503 and VEVRAA, as those requirements are based in statute, rather than executive order. An outstanding question is whether the OFCCP will continue to have the funding, power, or employees to enforce those requirements. The recent removal of the contractor portal indicates that enforcement is not a priority.
• EEO-1 and VETS-4212 reporting.
• State and local affirmative action plan requirements, which may expand to fill the void left by a weakened OFCCP and the revocation of Executive Order 11246.
• Requirements under federal anti-discrimination laws.

We will continue to monitor the implications of the recent executive order, including anticipated legal challenges and guidance from the OFCCP.