Trump Signs Order To Ban DEI Practices In Federal Contracts

President Donald Trump has continued his aggressive use of executive power in 2026, signing orders that target diversity, equity, and inclusion (DEI) practices in federal contracting and seek to stabilize the turbulent world of college athletics. These actions reflect the administration’s emphasis on merit-based policies and traditional structures amid ongoing debates over discrimination, efficiency, and the future of American institutions.

On March 26, 2026, Trump signed Executive Order 14398, titled “Addressing DEI Discrimination by Federal Contractors.” According to the accompanying White House fact sheet, the order bars federal contractors and subcontractors from engaging in what it calls “racially discriminatory DEI activities.” These are defined as practices involving disparate treatment based on race or ethnicity in areas such as recruitment, hiring, promotions, vendor selection, participation in training or mentoring programs, or the allocation of resources.

The directive requires federal agencies to incorporate a specific compliance clause into all new and existing contracts and subcontracts (including lower-tier ones) within 30 days—by April 25, 2026. Contractors must certify that they will not engage in such activities, and the clause extends to their subcontractors. Agencies are instructed to cancel, terminate, or suspend contracts with non-compliant companies. Additional enforcement tools include suspension or debarment from future contracting and potential liability under the False Claims Act for false certifications. The Attorney General is directed to prioritize enforcement of related civil rights complaints and contractual violations.

The Office of Management and Budget (OMB) must issue compliance guidance and identify economic sectors where DEI practices remain prevalent. The Federal Acquisition Regulatory Council is tasked with revising procurement rules to align with the new policy. Trump argued that these DEI initiatives increase workforce turnover, artificially limit the pool of qualified candidates, and drive up costs that are ultimately passed on to taxpayers. “DEI activities also create unnecessary costs by reducing the pool of available labor by artificially limiting companies to hiring or promoting certain individuals,” he stated.

This order builds on earlier efforts. Shortly after taking office in January 2025, Trump issued a broader executive order eliminating DEI offices, positions, and related performance standards across the federal government. That action targeted “Equity Action Plans” from the prior administration, which the president described as demonstrations of “immense public waste and shameful discrimination.” The March 2026 order adds contractual teeth, focusing specifically on race- and ethnicity-based practices while promoting merit-based decision-making in federal procurement.

As of early April 2026, Trump has signed more than 250 executive orders in his second term, a pace that underscores his willingness to act unilaterally while Congress has stalled on key issues. Critics argue these moves could face legal challenges, while supporters view them as necessary corrections to policies they see as discriminatory and inefficient.

In a separate but equally bold move, Trump has turned his attention to the chaos in college sports. During a March 2026 White House roundtable in the East Room—attended by lawmakers, conference commissioners, NCAA President Charlie Baker, and the CEO of the U.S. Olympic and Paralympic Committee, but notably without current college athletes—Trump warned that unchecked name, image, and likeness (NIL) payments and related changes threaten to destabilize not only athletic programs but the entire higher education system.

“The whole educational system is going to go out of business because of this,” Trump said bluntly when asked why he was addressing college sports amid foreign policy concerns, including tensions with Iran. He criticized a recent court-approved settlement that allows schools to share revenue directly with athletes alongside NIL deals, calling it “horrible” and saying it had thrown college athletics into “tithers.” Trump expressed nostalgia for the traditional scholarship model, which provided tuition, housing, and aid without direct cash compensation.

On April 3, 2026, the president followed through with an executive order titled “Urgent National Action to Save College Sports.” It directs federal agencies to enforce guardrails on NIL, including prohibitions on “fraudulent NIL schemes” (payments above fair market value, often through booster collectives). The order calls for limits on athlete transfers (generally one per career unless a degree is earned), a five-year eligibility window, protections for women’s and Olympic sports, and restrictions on using federal funds for certain compensation. It pressures the NCAA to adopt consistent national rules by August 1, 2026, with potential consequences for non-compliant institutions, including loss of federal funding.

Trump has framed these sports reforms as essential to preserving amateurism, fairness, and the long-term viability of college athletics, which support hundreds of thousands of student-athletes and contribute billions in scholarships and economic activity. The order anticipates legal challenges and aims to spur congressional action through the SCORE Act or similar legislation.

Together, these executive actions illustrate Trump’s approach: using procurement power to reshape private-sector practices and federal leverage to address perceived crises in education and culture. Implementation will require agency guidance, contractor adjustments, and likely court battles. Federal contractors are already reviewing programs for compliance risks, while college sports stakeholders brace for a new regulatory landscape. Whether these measures endure or are overturned remains to be seen, but they signal a clear shift toward merit, tradition, and efficiency in two high-stakes arenas.

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