Key players: President Donald Trump issued the EO; it targets federal contractors, subcontractors, and grant recipients across agencies. The Department of Justice (DOJ) ramps up FCA enforcement; the FAR Council must amend Federal Acquisition Regulation (FAR) by May 25, 2026, via deviations and interim guidance; agency heads report compliance by July 24, 2026. No specific companies named.[1][2][3][5][14]
Context and timeline: Builds on prior EO 14173 (January 2025), which revoked affirmative action orders, required DEI non-operation certifications violating anti-discrimination laws, and directed DOJ action against private-sector DEI. EO 14398 escalates with defined prohibited activities (e.g., race-based employment/contracting decisions), audit powers, and debarment, amid DOJ's growing FCA cases on DEI.[1][3][4][10][14] Implementation: clause in contracts by April 25; FAR updates by May 25; agency reviews by July 24.[2][6]
Newsworthy now: Published April 8, 2026, amid 30-day deadline (April 25), urging contractors to audit DEI programs immediately to avoid existential risks like debarment, especially for government-reliant firms; signals broader anti-DEI enforcement expansion.[1][2][5][9][10]