In the first weeks of President Donald Trump’s second term, the president issued a flurry of executive orders (EO) to reshape federal policies and shift priorities from the prior administration. These actions impact federal contractors and other employers, raising new compliance concerns in some cases while removing certain obligations in others. Some key changes in the orders include seeking to eliminate “illegal” diversity, equity, and inclusion programs, claiming that there are only two sexes, rescinding Biden-era policies, and removing restrictions on artificial intelligence (AI).
Diversity, Equity, and Inclusion (DEI)
The Trump administration has taken a strong stance against DEI, with President Trump signing two EOs in his first days in office seeking to eliminate “illegal” DEI programs and initiatives. EO 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” signed on January 20, 2025, revokes a Biden-era order that had sought to advance DEI and directed federal agencies to eliminate all DEI and DEIA mandates, policies, programs, and performance requirements, including ending “equity action plans,” “equity-related” grants or contracts, and “environmental justice” initiatives.
EO 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” signed on January 21, 2025, revoked the EO 11246, a 1964 order signed by President Lyndon Johnson that had required affirmative action in federal contracting and prohibited discrimination based on race, color, religion, sex, sexual orientation, gender identity, or national origin.