# 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

| Regulatory components | April 20, 2025 | April 21, 2025 | April 21, 2025 |
| Compliance evaluations | Office of Federal Contract Compliance Programs (OFCCP) | None | OFCCP (covered under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974 only) |
| Burden of proof | Contractor and subcontractor | Complainant | OFCCP (covered under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974 only) |
| Data collection and analysis | OFCCP | None | OFCCP (covered under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974 only) |
| Enforcement | OFCCP | Equal Employment Opportunity Commission → federal agency → Department of Government Efficiency | OFCCP (covered under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974 only) |
| Mandatory affirmative action plans | OFCCP | None | OFCCP (covered under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974 only) |
| Scope | Federal contractors and subcontractors | All employers with 15 or more employees for at least 20 weeks in the current or preceding calendar year for those under 40 years of age (employers with 20 or more employees for at least 20 weeks in the current or preceding calendar year for those of 40 years of age and older), excluding freelancers, federal employees, federally recognized Indian tribes, gig workers, independent contractors, private membership clubs, religious organizations, and self-employed individuals | OFCCP (covered under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974 only) |
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.

### Revoked or reserved Federal Acquisition Regulation (FAR) provisions and clauses

As part of the implementation of Executive Order 14173 and Executive Order 14168, the following provisions, clauses, and FAR subparts were either revoked or reserved:

#### Revoked FAR provisions and clauses

* 52.222-9 – Apprentices and Trainees
* 52.222-21 – Prohibition of Segregated Facilities (also removed from FAR 52.212-5, FAR 52.213-4, and FAR 52.244-6)
* 52.222-22 – Previous Contracts and Compliance Reports (also removed from FAR 52.204-8)
* 52.222-23 – Notice of Requirement for Affirmative Action To Ensure Equal Employment Opportunity for Construction
* 52.222-24 – Preaward On-Site Equal Opportunity Compliance Evaluation
* 52.222-25 – Affirmative Action Compliance (also removed from FAR 52.204-8 and FAR 52.212-3(d))
* 52.222-26 – Equal Opportunity (also removed from FAR 52.212-5, FAR 52.213-4, and FAR 52.244-6)
* 52.222-27 – Affirmative Action Compliance Requirements for Construction
* 52.222-29 – Notification of Visa Denial

#### Reserved FAR subparts and clauses

* FAR Subpart 22.8 – Equal Employment Opportunity (Reserved)
* FAR 22.801 – Definitions (Reserved)
* FAR 22.406-4 – Apprentices and Trainees (Reserved)
* FAR 22.407 – Solicitation Provision and Contract Clauses, removing references to 52.222-9 (Reserved)
* FAR 4.1202(a)(18) & (19) – Reserved, removing references to 52.222-22 and 52.222-25
* FAR 14.405(e) – Removed execution of representations regarding Equal Opportunity and Affirmative Action Compliance
These changes remove all FAR provisions and contract requirements previously enforcing Executive Order 11246 and related affirmative action regulations in federal contracting.

### Controversy

The implementation of CAAC Letter 2025-01 has generated significant controversy due to its removal of explicit prohibitions against segregated facilities in federal contracts and the exclusion of gender identity as a protected category. The changes stem from Executive Orders 14173 and 14168, issued by President Donald Trump in January 2025, which revoked previous nondiscrimination policies established under Executive Order 11246.

#### Segregated facilities

One of the most debated changes is the elimination of Federal Acquisition Regulation (FAR) clause 52.222-21, "Prohibition of Segregated Facilities." This clause, which had been included in federal contracts since the 1960s, barred contractors from maintaining segregated work areas, restrooms, dining facilities, drinking fountains, or transportation based on race, color, religion, sex, sexual orientation, gender identity, or national origin.
Legal scholars and civil rights organizations have expressed concern that removing this clause sends a signal that segregation in federally contracted workplaces is no longer prohibited. However, administration officials argue that existing civil rights laws, including the Civil Rights Act of 1964, still outlaw segregation and discrimination in both private and government-funded workplaces.

#### Gender identity

CAAC Letter 2025-01 also implements Executive Order 14168, titled "Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government." This executive order directed federal agencies to remove "gender identity" as a recognized term in government regulations and contracting policies. As a result, **FAR 22.801 and various provisions within FAR Part 52 were revised to eliminate references to gender identity**.
The administration described the move as a rollback of what it called "gender ideology extremism," arguing that federal regulations should recognize sex based on biological distinctions rather than self-identified gender. The order mandates that all federal agencies align their policies and contracting rules with a definition of sex based on "biological truth."
Critics, including LGBTQ+ advocacy groups and civil rights organizations, have argued that this change removes essential protections for transgender workers employed under federal contracts. Previously, contractors were required to uphold non-discrimination policies that included gender identity as a protected category, a requirement stemming from Executive Order 13672 signed by President Barack Obama in 2014.
Several organizations, including the American Civil Liberties Union (ACLU) and Lambda Legal, have announced plans to challenge these changes in court, arguing that they violate constitutional protections and existing anti-discrimination laws such as Title VII of the Civil Rights Act.

#### Response and legal challenges

The removal of both the "Prohibition of Segregated Facilities" clause and gender identity protections has led to widespread debate. Supporters of the administration's actions claim that these changes eliminate government overreach and restore a neutral, merit-based approach to federal contracting. Opponents argue that the changes dismantle important civil rights protections and could embolden discriminatory practices in federally contracted workplaces.