# Executive Order 14173

Executive Order 14173, titled "Ending Illegal Discrimination And Restoring Merit-Based Opportunity", is an executive order signed by Donald Trump, the 47th President of the United States, on January 21, 2025. The executive order instructs federal departments not to issue contracts to private organizations that enforce diversity, equity, inclusion and accessibility (DEIA) frameworks. The order does not affect state or lower jurisdiction level DEIA related government contracting practices. It specifically prevents affirmative action from being implemented by government contractors. The order also revoked certain parts of the Equal Employment Opportunity (EEO) order that was signed by Lyndon B. Johnson in 1965, as well as other orders, in terms of federal contracting jobs. The order also requests federal agencies to start an investigation on 9 publicly traded companies.
Critics have claimed this as being anti-minority and would decrease the likelihood of individuals in minority groups from getting a job.

## Provisions

* Revocation of the following executive orders and presidential memorandum:
** Executive Order 11246
** Executive Order 12898
** Executive Order 13583
** Executive Order 13672
** Presidential Memorandum of October 5, 2016
* Direct all executive departments and agencies to eliminate any discriminatory or unlawful preferences, mandates, policies, programs, activities, guidelines, regulations, enforcement actions, consent orders, and requirements
* Instruct all agencies to uphold established civil rights laws and address unlawful diversity, equity, and inclusion (DEI) practices in the private sector.
* The federal contracting process will be simplified to improve speed and efficiency, lower costs, and ensure that federal contractors and subcontractors adhere to civil rights laws.
* The Office of Federal Contract Compliance Programs within the Department of Labor is directed to immediately stop:
** Promoting “diversity”
** Requiring federal contractors and subcontractors to implement “affirmative action” measures
** Permitting or encouraging federal contractors and subcontractors to adjust their workforce composition based on race, color, gender, sexual orientation, religion, or national origin
* As outlined in Executive Order 13279 of December 12, 2002 (Equal Protection of the Laws for Faith-Based and Community Organizations), federal contractors and subcontractors must ensure that their employment, procurement, and contracting practices do not consider race, color, gender, sexual orientation, religion, or national origin in any manner that violates the nation’s civil rights laws.
* The head of each agency must include the following provisions in every contract or grant award:
** A clause stating that the contractor's or grant recipient's full compliance with all applicable federal anti-discrimination laws is a key factor in the government’s payment decisions, as outlined in section 3729(b)(4) of title 31, United States Code; and
** A clause requiring the contractor or recipient to certify that it does not run any programs promoting DEI that conflict with any applicable federal anti-discrimination laws.
* The Director of the Office of Management and Budget (OMB), with support from the Attorney General as needed, shall:
** Review and update all government-wide processes, directives, and guidance as necessary;
** Remove references to DEI and DEIA principles—regardless of how they are labeled—from federal acquisition, contracting, grants, and financial assistance procedures to streamline these processes, enhance speed and efficiency, reduce costs, and ensure compliance with civil rights laws; and
** Eliminate all mandates, requirements, programs, or activities related to “diversity,” “equity,” “equitable decision-making,” “equitable deployment of financial and technical assistance,” “advancing equity,” and similar concepts, as appropriate.
* The heads of all agencies, with support from the Attorney General, must take all necessary actions within their operations to promote in the private sector the principles of individual initiative, excellence, and hard work outlined in Section 2 of this order.
* To assist in developing effective civil-rights policies for Trump administration, the Attorney General, within 120 days of this order, in consultation with relevant agency heads and in coordination with the Director of OMB, shall provide a report to the Assistant to the President for Domestic Policy. This report will include recommendations for enforcing federal civil-rights laws and measures to encourage the private sector to eliminate illegal discrimination and preferences, including DEI-related practices. The report will include a proposed strategic enforcement plan that identifies:
** Key sectors of concern under each agency’s jurisdiction;
** The most egregious and discriminatory DEI practitioners within each sector of concern;
** A detailed plan outlining specific steps to deter DEI programs or principles (whether labeled as “DEI” or otherwise) that involve illegal discrimination or preferences. As part of this plan, each agency will identify up to nine potential civil compliance investigations targeting publicly traded corporations, large nonprofit organizations, foundations with assets of $500 million or more, state and local bar and medical associations, and institutions of higher education with endowments exceeding $1 billion;
** Additional strategies to encourage the private sector to eliminate illegal DEI discrimination and preferences while ensuring compliance with federal civil-rights laws;
** Potential litigation for federal lawsuits, interventions, or statements of interest; and
** Possible regulatory actions and sub-regulatory guidance.
* Within 120 days of this order, the Attorney General and the Secretary of Education shall jointly provide guidance to all state and local educational agencies that receive federal funding, as well as to all institutions of higher education that receive federal grants or participate in the federal student loan assistance program under Title IV of the Higher Education Act, 20 U.S.C. 1070 et seq. This guidance will outline the measures and practices necessary to comply with the decision in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College, 600 U.S. 181 (2023).
* If any part of this order, or its application to a specific person or situation, is found to be invalid, the rest of the order and its application to other individuals or circumstances will remain unaffected.
* This order does not apply to lawful employment or contracting preferences for U.S. armed forces veterans or individuals protected under the Randolph-Sheppard Act, 20 U.S.C. 107 et seq.
** This order does not restrict state or local governments, federal contractors, or federally funded state and local educational agencies or institutions of higher education from engaging in speech protected by the First Amendment.
** This order does not prohibit educators at federally funded institutions of higher education from advocating for, endorsing, or promoting the employment or contracting practices prohibited by this order, as part of broader academic instruction.
* Nothing in this order shall be interpreted to:
** Limit or alter the authority legally granted to any executive department, agency, or their leadership; or
** Interfere with the responsibilities of the Director of the Office of Management and Budget regarding budgetary, administrative, or legislative matters.
** This order shall be carried out in accordance with applicable laws and is subject to the availability of appropriations.
** This order does not create any rights or benefits, whether substantive or procedural, that are enforceable by any individual or entity against the United States, its departments, agencies, officers, employees, agents, or any other person.

## Effects on current contracts

The order requires the government departments to review the hiring practices of businesses and organizations that have been contracted, as well as consider any remedies done after the signing of this order. Federal contractors were given 90 days from the signing of the order to stop DEIA practices. After the review, the departments are to determine whether to continue the contract with the current organization, give the contract to another party, or to cancel the contract.
Due to this many organizations are worried if they might end up losing money from partially completed contracts, if the federal government were to rescind their contract. Because of this, many lawyers have suggested to contracted organizations to be in touch with a law-firm immediately.