Trump’s Latest Executive Order Targets Diversity, Equity, and Inclusion Efforts in Federal Contracting

On March 26, 2026, President Trump signed Executive Order 14398, officially titled “Addressing DEI Discrimination by Federal Contractors.” The order, published in the Federal Register on March 31, 2026, represents the latest aggressive assault on diversity, equity, and inclusion programs within the federal government’s contracting ecosystem.

According to analysis by Dentons, a global law firm, EO 14398 directs federal agencies to scrutinize and penalize contractors that engage in what the administration deems “discriminatory” DEI practices. The order frames DEI initiatives—long recognized as critical tools to combat systemic racism and promote fair hiring—as a form of discrimination against non-minority workers.

This executive order is part of a broader pattern under the Trump administration of weaponizing federal power to dismantle civil rights protections and roll back progress on racial and economic equity. By targeting contractors’ DEI efforts, the administration is effectively chilling efforts to create inclusive workplaces and ensure government dollars do not perpetuate historic inequalities.

The order bypasses Congress and relies on executive authority to impose sweeping new restrictions on how federal contractors can approach diversity and inclusion. This is consistent with Trump’s playbook of authoritarian overreach—using executive orders to sidestep legislative processes and impose policies that undermine democratic norms.

Federal agencies are now tasked with enforcing these restrictions, which could lead to the loss of contracts for companies that maintain robust DEI programs. This threatens to reverse gains made in diversifying the federal workforce and supplier base, harming marginalized communities that have historically faced barriers to opportunity.

EO 14398 also sends a chilling message to contractors and federal employees committed to civil rights and equity: the administration views efforts to address discrimination as itself discriminatory. This Orwellian redefinition of discrimination undermines the very notion of fairness and equal opportunity.

In the context of ongoing attacks on voting rights, immigration enforcement abuses, and corruption scandals, this executive order is another piece of the Trump administration’s authoritarian puzzle. It is a direct attack on democratic values and the principle that government should serve all Americans fairly.

We will continue to track the enforcement and impact of EO 14398 as it unfolds. The stakes are high: this order threatens to entrench inequality under the guise of “addressing discrimination,” making it harder for marginalized groups to access federal contracting opportunities and participate fully in the economy.

For those committed to accountability and democratic integrity, resisting this assault on civil rights is urgent. The Trump administration’s war on DEI is not just a policy dispute—it is a battle over the soul of American democracy.