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The Federal Acquisition Regulatory Council has issued instructions to federal agencies to implement Executive Order 14398. EO 14398 requires federal contractors and subcontractors to end the use of "racially discriminatory DEI activities." The FAR Council's instructions direct federal agencies to include certain language required by EO 14398 in new and existing contracts.

The form that the Office of Federal Contract Compliance Programs requires federal contractors and subcontractors to use to gather information on disability status expires in April of 2026. The Office of Management and Budget has only approved the use of the form until April 30, 2026. Federal contractors and subcontractors should consider what steps to take in light of the expiration of this form.

The Trump administration's budget for federal fiscal year 2027 proposes to eliminate the Department of Labor's Office of Federal Contract Compliance Programs (OFCCP). The budget proposal would move OFCCP's responsibilities to a new Office of Civil Rights within the Department of Labor.

The Trump administration has issued a new executive order regarding the DEI activities of federal contractors and subcontractors. Federal contractors and subcontractors may have contracts terminated for failure to address what the executive order defines as "racially discriminatory DEI activities."

A budget agreement between the U.S. House and Senate for federal fiscal year (FY) 2026 funds OFCCP at approximately the same level as FY 2025. The act was signed by the President on February 3, 2026. The funding level was surprising in light of recent proposals to eliminate OFCCP.

On January 7, 2026, the Office of Federal Contract Compliance Programs published a request for comments on record keeping and reporting requirements regarding the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA). VEVRAA requires that federal contractors and subcontractors prevent discrimination against certain classes of veteran and make efforts to find and employ veterans protected under the law. Interested parties have until March 9, 2026 to provide comments to OFC

The Equal Employment Opportunity Commission (EEOC) issued a press release regarding an investigation into what it considers illegal diversity, equity, and inclusion (DEI) initiatives at a major U.S. corporation. The press release is dated November 20, 2025.

Representatives of Ellen Shong and Associates (ESA) and the Smith Anderson law firms presented a webinar on "What Federal Contractors Need to Know for 2026." A recording of the webinar is available from the Smith Anderson website.

There has been a leadership change at the Office of Federal Contract Compliance Programs. Catherine Eschbach has left the agency. Ashley Romanias is the new head of OFCCP.

On November 19, 2025, the Equal Employment Opportunity Commission released new materials on discrimination against American workers. The agency stated that a new document entitled Discrimination Against American Workers Is Against The Law and a revised version of the agency's webpage regarding national origin discrimination are available.