Merit Over Mandates: Banning Race and Sex Hiring Preferences
Published Date: 1/31/2025
Presidential Document
Summary
This order stops illegal race- and sex-based preferences in government and big industries, making sure everyone gets a fair chance based on hard work and talent. It affects federal agencies, companies, schools, and more, aiming to restore true merit-based opportunities starting now. The government will enforce civil-rights laws strictly, protecting hardworking Americans and promoting unity without costly new programs.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 2 costs, 1 mixed.
Federal Contractors: Affirmative Action Revoked
The order revokes Executive Order 11246 and directs the Office of Federal Contract Compliance Programs to stop promoting diversity and holding Federal contractors responsible for affirmative action. Federal contractors may continue complying with the regulatory scheme in effect on January 20, 2025 for 90 days from the date of this order.
Contracts Must Include DEI Certification Term
Every Federal contract and grant award must include a term making compliance with Federal anti-discrimination laws material to payment decisions under 31 U.S.C. 3729(b)(4) and requiring the contractor or recipient to certify it does not operate DEI programs that violate Federal anti-discrimination laws.
Attorney General to Target Private-Sector DEI
Within 120 days the Attorney General must submit a report with recommendations and a strategic enforcement plan to encourage the private sector to end illegal DEI discrimination. The plan must identify up to nine potential civil compliance investigations of publicly traded corporations, large non‑profit corporations or associations, foundations with assets of 500 million dollars or more, State and local bar and medical associations, and institutions of higher education with endowments over 1 billion dollars.
Higher Education Guidance After SFFA Decision
Within 120 days the Attorney General and Secretary of Education must jointly issue guidance to State and local educational agencies that receive Federal funds and to institutions of higher education that receive Federal grants or participate in the Federal student loan program under Title IV about measures required to comply with Students for Fair Admissions v. Harvard College (600 U.S. 181 (2023)).
Veterans and Randolph‑Sheppard Preferences Preserved
The order states it does not apply to lawful Federal or private-sector employment and contracting preferences for veterans or persons protected by the Randolph‑Sheppard Act (20 U.S.C. 107 et seq.).
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