White House Orders End to Race-Based Hiring by Government Contractors
Published Date: 3/31/2026
Presidential Document
Summary
Starting soon, all companies that work with the federal government must stop any hiring or promotion practices that treat people differently based on race or ethnicity. This change aims to make sure everyone is judged fairly on their skills and work, saving taxpayer money by cutting unnecessary costs. Federal contractors have to follow these new rules right away, or they risk losing government contracts.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 5 costs, 0 mixed.
Ban on Racially Discriminatory DEI Practices
If your company contracts with the federal government, you may not engage in racially discriminatory DEI activities. The order defines those activities to include disparate treatment based on race or ethnicity in recruitment, hiring, promotions, contracting, program participation, or resource allocation.
Contract Loss and Debarment Penalties
The order directs agencies to cancel, terminate, suspend, or cause cancellation/termination/suspension of contracts for failure to comply and to take action to suspend and debar noncompliant contractors or subcontractors. The Attorney General may also consider bringing False Claims Act actions for violations.
New Contract Clause and Compliance Duties
Within 30 days of March 26, 2026 (by April 25, 2026), federal contracts and subcontracts must include a clause forbidding racially discriminatory DEI activities. That clause also requires contractors to provide information and reports and give contracting agencies access to books, records, and accounts to show compliance.
Obligation to Report Subcontractor Violations
Contractors must report any known or reasonably knowable conduct by subcontractors that may violate the clause to the contracting agency and must take remedial actions directed by the agency. Contractors must also inform the agency if a subcontractor sues and the suit challenges the clause.
Agency Guidance, Sector Reviews, and Implementation Deadlines
The Office of Management and Budget will issue guidance to agencies; OMB, the Attorney General, and other officials will identify sectors at risk and issue further guidance. The Federal Acquisition Regulatory Council must amend the FAR and issue interim guidance within 60 days of March 26, 2026 (by May 25, 2026). Each agency head must review implementation and report within 120 days of March 26, 2026 (by July 24, 2026).
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-15357, Restoring Trust in the Smithsonian Institution
2026-15274, Actions by the United States in the Investigations Under Section 301 of the Trade Act of 1974 of the Acts, Policies, and Practices of 60 Economies Related to the Failure of Each Economy To Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced With Forced Labor
2026-14990, Further Strengthening Actions Taken To Adjust Imports of Aluminum Into the United States
The U.S. government is stepping up its game to protect national security by tightening rules on aluminum imports. This means higher tariffs and stricter controls on aluminum coming into the country, especially from places that might threaten our security. These changes kick in soon and aim to support American aluminum makers while keeping our supply safe and strong.
2026-14997, Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Motor Vehicles
The U.S. is hitting back at Canada for unfairly charging extra taxes on American cars and car parts, making it harder for U.S. businesses to compete. Starting now, the U.S. will add extra duties on certain Canadian imports to balance the playing field and protect American jobs. This means more costs for some Canadian vehicles and a fairer deal for U.S. automakers and workers.
2026-14991, Imposing Additional Duties To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages
Canada has unfairly blocked U.S. alcoholic drinks from being sold in most of its provinces since March 2025, hurting American businesses and workers. To fight back, the U.S. is adding extra taxes on certain Canadian imports to balance the playing field. These new duties kick in right away and aim to protect U.S. commerce from this unfair treatment.
2026-14999, Made in America Week, 2026
Made in America Week 2026 celebrates the comeback of U.S. manufacturing, thanks to new trade deals and smart policies that bring jobs and factories back home. American workers and businesses are winning big with billions in investments, tax cuts, and rules that make sure products labeled 'Made in USA' really are. This week reminds us all that building America’s future starts with buying and making things right here at home.
Previous / Next Documents
Previous: 2026-06079, Continuation of the National Emergency With Respect to Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits
The President is extending a national emergency for another year because big and ongoing trade deficits still threaten the U.S. economy and security. This affects trade policies and actions targeting unfair trade practices from other countries. The emergency started in April 2025 and now continues through April 2027, keeping important trade rules and controls in place.
Next: 2026-06601, Ensuring Citizenship Verification and Integrity in Federal Elections
This new order makes sure only U.S. citizens can vote in federal elections by using smart tools like barcodes on ballots to verify citizenship. It affects voters, election officials, and government agencies, aiming to stop fraud and keep elections fair. These changes start soon and may require some funding to set up the new verification systems.