Executive Order 14398: Addressing DEI Discrimination by Federal Contractors

Executive Order 14398 cracks down on race-based DEI practices in federal contracting, forcing a shift to strictly merit-based standards. Contractors must eliminate discriminatory policies across hiring, promotions, and programs—or risk termination, suspension, or debarment. The order mandates new contract clauses, tighter oversight, and stronger enforcement, with the Department of Justice empowered to pursue violations under the False Claims Act. It also fast-tracks updates to federal procurement rules to ensure compliance across all agencies. The goal: reduce costs, eliminate inefficiencies, and restore accountability in government-funded contracts.