Trump Signs Order To Ban DEI Practices In Federal Contracts
President Donald J. Trump signed a sweeping executive order on March 26 aimed at eliminating diversity, equity, and inclusion (DEI) mandates from federal contracting, marking another decisive step in his administration’s broader push to restore merit-based standards across government operations.
According to a White House fact sheet, the order bars federal contractors and subcontractors from engaging in DEI practices and directs the Office of Management and Budget to issue compliance guidance while identifying sectors where such policies have taken root.
Under the directive, federal agencies are instructed to cancel, terminate, or suspend contracts with companies that refuse to eliminate what the administration calls “racially discriminatory DEI activities.” The order further requires the attorney general to prioritize enforcement against contractors violating these standards and to ensure timely review of civil rights complaints filed by private citizens, as reported by The Epoch Times.
The policy also mandates that the Federal Acquisition Regulatory Council revise procurement rules to remove provisions conflicting with the administration’s stance. Officials have defined DEI-based practices as those that treat employees or contractors differently based on race or ethnicity, rather than merit.
President Trump emphasized that such policies not only undermine fairness but also damage efficiency across the federal workforce.
“DEI activities also create unnecessary costs by reducing the pool of available labor by artificially limiting companies to hiring or promoting certain individuals,” Trump said.
He warned that these costs are ultimately passed on to American taxpayers through inflated federal contracts, while also noting that some companies have attempted to disguise or continue DEI initiatives despite prior efforts to eliminate them.
Rolling Back “Equity” Bureaucracy
This latest order builds on a broader initiative launched shortly after President Trump returned to office in January 2025, when he directed federal agencies to dismantle DEI offices, eliminate related positions, and remove performance standards tied to such programs.
Trump sharply criticized the previous administration for embedding DEI policies throughout the federal government via so-called “Equity Action Plans.”
“The public release of these plans demonstrated immense public waste and shameful discrimination. That ends today,” he said.
Since beginning his second term, Trump has signed more than 240 executive orders, using executive authority to advance policy priorities amid what the administration views as inaction from Congress on key national issues.
Turning Attention to College Sports Chaos
In addition to federal workforce reforms, President Trump is now setting his sights on the rapidly evolving landscape of college athletics—specifically the explosion of name, image, and likeness (NIL) compensation.
Speaking during a White House summit that included lawmakers, conference commissioners, and Charlie Baker, Trump warned that the current trajectory could have far-reaching consequences beyond sports.
“The whole educational system is going to go out of business because of this,” Trump said, underscoring concerns that unchecked NIL payments could destabilize both athletic programs and higher education institutions.
The summit, held in the East Room, also included leadership from the U.S. Olympic and Paralympic Committee, though notably excluded current college athletes despite NIL being central to the debate.
When pressed on why he was focusing on college athletics amid ongoing geopolitical tensions, including conflict with Iran, Trump doubled down:
“The whole educational system is going to go out of business because of this.”
The president revealed he is preparing an “all-encompassing” executive order expected within days, designed to force congressional action on NIL reform. He acknowledged such a move could spark legal challenges and send the issue back through federal courts.
Trump also took aim at a recent court-approved settlement that reshaped the NCAA’s compensation structure, allowing schools to share revenue directly with athletes in addition to NIL earnings.
Calling the decision “horrible,” Trump said it “threw the sports world and … the college athletic world into ‘tithers.’”
“I thought the system of scholarships was great,” he added, referencing the traditional model where student-athletes received tuition, housing, and related benefits rather than direct pay.