Trump’s DEI Order Creates Dilemma for Federal Contractors

Federal contractors are scrambling to figure out how far they should go in changing policies they’ve used to recruit and retain employees, in light of the Trump administration’s crackdown on what it describes as “illegal” DEI.

Companies that provide goods and services to the US government have a lot at stake. Agencies reported spending more than $770 billion in prime contracts in 2024, and there could be legal repercussions and hefty penalties for crossing the line on diversity, equity and inclusion— a line the administration hasn’t clearly defined. At the same time, existing contracts ...