Executive Order Ends Diversity Mandates in Federal Contracting

Critics warn the move will disproportionately impact minority-owned businesses seeking government contracts.

Apr. 11, 2026 at 7:45pm

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A photorealistic painting of an empty government office desk in a warm, cinematic lighting, conveying a sense of bureaucratic solitude and the potential impact of shifting federal contracting policies.The federal government's pivot away from diversity mandates in contracting risks returning to a system where opportunities naturally flow to the largest, most established firms.NYC Today

President Donald Trump signed an executive order that removes all diversity, equity, and inclusion (DEI) requirements from federal contracts, prioritizing a strict merit-based standard. The policy shift marks a significant change, as the federal government has long used its purchasing power to promote economic participation for marginalized minority enterprises. Critics argue this move will have a disproportionate impact on Black and Brown communities, potentially reducing corporate diversity and creating a 'chilling effect' on minority-owned businesses seeking subcontracts.

Why it matters

For over half a century, federal diversity mandates have helped level the playing field for minority-owned firms to access the $700 billion federal marketplace. This executive order effectively dismantles those systemic support structures, potentially regressing to a system where contracts flow primarily to the largest, most established (and overwhelmingly white-owned) firms.

The details

The recently signed executive order mandates the immediate removal of all diversity, equity, and inclusion (DEI) requirements from federal contracts. It directs agencies to 'cancel, terminate, or suspend' any contracts involving DEI programs and instructs the Attorney General to prioritize False Claims Act charges against those who maintain such initiatives. The administration frames this as a return to 'merit-based' efficiency, but critics argue it ignores the systemic barriers minority-owned businesses face in accessing federal contracting opportunities.

  • The executive order was signed by President Trump on March 26, 2026.

The players

President Donald Trump

The President of the United States who signed the executive order removing diversity mandates from federal contracting.

Hakeem Jeffries

The House Minority Speaker, a Democratic representative from New York's 8th congressional district, who criticized the executive order and stated that diversity, equity, and inclusion is about 'economic opportunity for everyone.'

Glenn Ivey

A Democratic congressman from Maryland's 4th district, who stated that the executive order will have a disproportionate impact on marginalized communities and that he believes the order will not survive legal challenges.

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What they’re saying

“No president in the United States of America can change the Constitution or change law like the 1964 Civil Rights Act by way of example, through executive action or executive order.”

— Hakeem Jeffries, House Minority Speaker

“Contracts are going to be available under the traditional approach and it will be damaging to these companies owned by minorities, as they will not be allowed to bid for contracts that they used to be able to bid for.”

— Glenn Ivey, U.S. Representative

What’s next

Civil rights litigators have been challenging orders like this one, and given precedent law, the order will likely be dismantled through the courts.

The takeaway

This executive order represents a significant shift away from decades of federal efforts to promote economic inclusion and opportunity for marginalized minority enterprises. Critics warn it will disproportionately impact Black and Brown communities, potentially reducing corporate diversity and creating barriers for minority-owned businesses seeking government contracts.