President Donald Trump continues to reshape federal policy through executive action, recently targeting diversity, equity, and inclusion (DEI) practices among government contractors and warning of broader risks in college athletics driven by name, image, and likeness (NIL) compensation.
On March 26, 2026, Trump signed Executive Order 14398, titled “Addressing DEI Discrimination by Federal Contractors.” The order requires federal agencies to insert a specific clause into all new and existing contracts and subcontracts (at every tier) within 30 days—by April 25, 2026. Under this clause, contractors must certify they will not engage in what the administration calls “racially discriminatory DEI activities.”
The order defines these activities as any practices involving disparate treatment based on race or ethnicity in hiring, promotions, recruitment, vendor selection, program participation, or resource allocation, rather than decisions grounded in merit. It builds on a January 2025 executive order that eliminated DEI offices, positions, and related performance metrics inside the federal government itself.
The administration argues that such DEI practices increase workforce turnover, reduce the available labor pool by prioritizing demographic factors over qualifications, and drive up costs that taxpayers ultimately bear through higher contract prices. Trump has stated that some contractors continue to pursue or conceal these initiatives despite prior directives. Noncompliance can result in contract cancellation, termination, suspension, or debarment from future federal work. The order also deems compliance “material” to government payments, potentially exposing violators to liability under the False Claims Act. The Attorney General is directed to prioritize enforcement, while agencies must grant access to contractors’ records for compliance reviews and update the Federal Acquisition Regulation to align with the new policy.
This move represents an escalation in the administration’s efforts to prioritize merit-based operations in federal contracting. Critics may view it as an overreach into private business practices, while supporters see it as a necessary correction against what they describe as illegal race-based preferences that undermine efficiency and fairness.
Warnings on College Sports and NIL
Separately, Trump has turned his attention to turmoil in college athletics. During a March 2026 White House roundtable in the East Room—with lawmakers, conference commissioners, NCAA President Charlie Baker, and the CEO of the U.S. Olympic and Paralympic Committee—he warned that unchecked changes surrounding NIL payments and revenue-sharing models could destabilize not only sports programs but the entire higher education system.
“The whole educational system is going to go out of business because of this,” Trump said when asked why he was focusing on college sports amid other pressing issues like foreign policy. He criticized a recent court-approved settlement that has allowed schools to share revenue directly with athletes alongside NIL deals, calling it “horrible” and saying it has thrown college athletics into chaos. Trump expressed preference for the traditional model centered on scholarships for tuition, housing, and related costs rather than direct compensation, which he believes erodes the amateur spirit of college sports.
Following the roundtable, Trump indicated he would issue an “all-encompassing” executive order to force reforms. On April 3, 2026, he signed “Urgent National Action to Save College Sports.” The order directs federal agencies to link compliance with updated athletic rules to federal funding for universities. It urges the NCAA to implement changes by August 1, 2026, including limits on athlete transfers, a five-year eligibility window, protections for women’s and Olympic sports, and curbs on “pay-for-play” arrangements disguised as inflated NIL deals or booster collectives.
The directive defines “fraudulent NIL schemes” as payments above fair market value tied to athletic participation and prohibits the use of federal funds for such activities or certain coaching compensation. It aims to restore uniformity, reduce litigation costs for the NCAA, and preserve opportunities across a broad range of sports programs that support hundreds of thousands of student-athletes.
Trump has been highly active with executive orders in his second term, signing more than 240 since January 2025 as Congress has moved slowly on key issues. These actions on DEI and college sports reflect his long-standing view that certain progressive policies—whether in government contracting or higher education—prioritize ideology over merit, efficiency, and tradition, often at significant public cost.
Implementation of both orders will likely involve agency guidance, audits, and potential legal challenges from affected parties. Contractors and universities now face tighter scrutiny, while the administration frames these steps as restoring fairness and fiscal responsibility to federal operations and American institutions.
