America First Challenges DOE's DEI Mandates for Contractors
Published Date: 3/10/2026
Proposed Rule
Summary
The America First Legal Foundation asked the Department of Energy to change rules about how contractors create and follow Diversity, Equity, Inclusion, and Accessibility (DEIA) plans. This affects companies working with DOE and could change how they handle DEIA efforts. The DOE wants your thoughts and will accept comments until April 9, 2026, so don’t miss your chance to weigh in!
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
DOE Contractors Must Submit DEIA Plans
If you are a management-and-operating contractor (an M&O) who contracts with the Department of Energy, the rule at 48 CFR 970.5226-1 requires you to prepare, submit, and annually update a written Diversity, Equity, Inclusion, and Accessibility (DEIA) Plan for approval by the contracting officer. The plan must describe how you will promote workforce and supplier diversity, set specific goals, and periodically report on progress; the clause was finalized in November 2024 and was last updated in December 2024.
DOE Suspended Enforcement of DEIA Clause
On February 3, 2025, DOE issued a class deviation that eliminated the requirement to include the DEIA Plan clause at 48 CFR 970.5226-1, directed contracting officers to notify affected contractors that DOE will no longer enforce the clause, and instructed contracting officers to remove the clause from contracts "as soon as practicable." On January 23, 2025, DOE also issued Policy Flash 2025-16 rescinding prior DEI guidance.
Petition Seeks Permanent Rescission
The America First Legal Foundation petitioned DOE on January 7, 2026, asking DOE to rescind 48 CFR 970.5226-1 so contractors would no longer be required to create DEIA Plans. DOE is requesting public comments on that petition and will accept comments through April 9, 2026, while taking no position at this time.
DEIA Plans Require Supplier Diversity Goals
The DEIA Plan clause directs contractors to describe how they will promote supplier diversity and to set specific goals and report progress; earlier DOE policy also framed diversity clauses to encourage partnerships with small, small-disadvantaged, and women-owned small businesses. This can affect small suppliers and subcontractors that may be targeted for supplier diversity efforts.
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