Addressing DEI Discrimination by Federal Contractors

Executive Order 14398 is an executive action signed by President [Not specified in document] that requires federal departments and agencies to add a contract clause banning racially discriminatory diversity, equity, and inclusion (DEI) activities within 30 days (Sec. 3). The order directs the Office of Management and Budget (OMB) to issue guidance and directs contracting agencies to cancel, suspend, or debar contractors who violate the clause (Sec. 4(a)). It also tasks the Federal Acquisition Regulatory Council with amending the Federal Acquisition Regulation (FAR) and issuing interim guidance (Sec. 5(a)-(b)). This matters because the change affects companies that work for the federal government, their workers, and ultimately the goods and services taxpayers buy from those contractors (Sec. 1).