Trump signed EO 14173 revoking 60-year affirmative action requirement for federal contractors, directing AG to investigate private-sector DEI

On January 21, 2025, President Trump signed Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," revoking Executive Order 11246 — the foundational federal contractor civil rights requirement that President Lyndon B. Johnson signed in 1965. EO 11246 had for six decades required all federal contractors to maintain written affirmative action plans and barred discrimination in hiring, promotion, and compensation on the basis of race, color, religion, sex, and national origin. Its revocation eliminated the enforcement authority of the Office of Federal Contract Compliance Programs over an estimated $700 billion in annual federal contracting. Seven additional equal employment executive orders were simultaneously revoked: EOs 11375, 12086, 13279, 13280, 13496, 13665, and 13672.

EO 14173 required all future federal contracts and grants to include a certification that the contractor "does not operate any programs promoting DEI that violate any applicable federal anti-discrimination laws" — a provision exposing contractors to False Claims Act liability for maintaining voluntary DEI programs. This certification requirement extended the civil rights rollback beyond formal legal obligations, creating a chilling effect across private employers with federal contracts. The order also directed the Attorney General to compile within 120 days a report identifying enforcement recommendations against private-sector DEI programs — signaling the administration's intent to use DOJ as an instrument to suppress diversity programs beyond the federal contracting sphere.

EO 14173 is the companion to EO 14172, signed January 20, 2025, which eliminated DEI programs within the federal government itself.

Updates

February 21, 2025: A federal district court in Maryland issued a nationwide preliminary injunction against enforcement of three key provisions of EO 14173, finding them likely unconstitutional. February 6, 2026: The U.S. Court of Appeals for the Fourth Circuit vacated the district court's preliminary injunction in No. 25-1189, holding that plaintiffs were unlikely to succeed on facial constitutional challenges and permitting government enforcement of the Termination and Certification Provisions to resume. As-applied challenges remain available. Sources: Stinson LLP; Jackson Lewis.