Frequently Asked Questions

On January 21, 2025, President Trump signed Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This new executive order aims to safeguard the civil rights of all Americans by emphasizing federal statutes that promote non-discriminatory practices.

The new EO enforces the Civil-Rights Act of 1964 (Title VII) that protects American citizens from discrimination based on race, color, religion, sex, or national origin. The EO terminates the radical DEI (Diversity, Equity, and Inclusion), quotas, and workforce balancing practices of federal contracting and the private sector. It also directs federal agencies to combat discrimination at the federal level and in the private sector.

The new EO revokes several existing Executive Orders including the long-standing Executive Order 11246 which was signed in 1965 by President Lyndon B. Johnson. EO11246 was the foundation for the directive that required federal contractors and subcontractors to maintain affirmative action plans analyzing race/ethnicity and gender data.

Important elements of Executive Order 14173:

• Termination of “diversity, equity, and inclusion” (DEI) discrimination at federal level and directs agencies to take action to end private sector DEI discrimination.
• Requires OMB to streamline federal contracting process to reduce costs. OMB must require Federal Contractors to comply with civil rights laws.
• Revokes EO11246 removing the existing federal contractor obligation to maintain a formal affirmative action plan for race/ethnicity and gender.
• OFCCP is barred from pushing contractors to balance workforce based on race, sex, gender identity, sexual preference, or religion. 
• EO14173 does not have any bearing on the federal contractor obligations under the VEVRAA and Section 503 statutes.

It is imperative that federal contractors remain cognizant of the fact that revoking Executive Order 11246 did not eliminate the obligations under Title VII to refrain from discrimination. Consequently, it is crucial for contractors to continue monitoring and analyzing all workforce activities to ensure that all practices are non-discriminatory. The newly issued Executive Order, EO 14173, reinforces the obligations that federal contractors have under Title VII to refrain from discrimination.

Federal contractors still have the obligations under the Veterans Employment and Reemployment Rights Act (VEVRAA) and Section 503, which require the development of annual affirmative action plans (AAPs).

The Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act (Section 503) are both statutes that remain in effect. Consequently, federal contractors and subcontractors continue to be obligated to develop and maintain annual Affirmative Action Plans (AAPs) that ensure non-discriminatory practices are implemented for protected veterans and individuals with disabilities. These AAPs should analyze the workforce, including all movements such as applicants, hires, promotions, transfers, and terminations.

On February 5, 2025, H.R. 989 was introduced in the House of Representatives with the intention of codifying Executive Order 11246. The bill has been referred to the House Committee on Education and Workforce.

Executive Order 11246, signed by President Lyndon B. Johnson in 1965, mandated that Federal contractors and subcontractors take affirmative action to ensure equal opportunity without regard to race, color, gender, or national origin. Executive Order 11246 was revoked when President Trump signed Executive Order 14173 on January 21, 2025.

Although the contents of the bill have not been released, it can be assumed that the resulting legislation would codify the previous requirements for Affirmative Action (AAP) development by Federal Contractors under Executive Order 11246, similar to the requirements under the Veterans Equal Opportunity in Rehabilitation and Reemployment Act (VEVRAA) and Section 503.

Speediware will continue to monitor the status of this bill and provide updates as they become available.