President Trump’s executive order repeals affirmative action

On Tuesday evening, January 21, 2025, President Trump issued an executive order titled, “Eliminating illegal discrimination and restoring merit-based opportunities,” deals with the suspension of DEI employees in government positions. Within the order, the chairman revokes a number of previous orders, i.a Executive order 11246 of 24 September 1965 (Equal Employment Opportunities).

The order’s primary intent is to eliminate what it describes as “unlawful preferences” based on race, gender or other identity categories. It emphasizes the importance of enforcing civil rights laws that protect against discrimination and promote merit-based hiring practices. The executive order directs federal agencies to end policies or programs that prioritize DEI in hiring or contracting, as well as in other activities, and encourages the private sector to adapt to this approach.

Specifically, the order reads:

“The federal contracting process must be streamlined to increase speed and efficiency, reduce costs, and require federal contractors and subcontractors to comply with our civil rights laws. Therefore:

• Executive Order 11246…is hereby repealed. For 90 days from the date of this order, federal contractors may continue to comply with the regulatory regime in effect on January 20, 2025.
• The Office of Federal Contract Compliance Programs within the Department of Labor shall immediately cease:
  • Promoting “diversity”
  • Hold federal contractors and subcontractors accountable for taking “affirmative action”; and
  • Permitting or encouraging federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion, or national origin.”

Federal contractors are still required to complete VETS and disabled AAPs as they are required by law. In his speech discussing upcoming orders, President Trump emphasized his administration’s commitment to merit-based hiring and nondiscrimination in the workplace — a sentiment consistent with Title VII of the Civil Rights Act of 1965, as amended.

While it is unclear how this EO will affect ongoing audits initiated by the OFCCP, there remains a lack of clarity as to what, if anything, will replace EO 11246. Importantly, the EO did not dissolve the OFCCP. It is possible that the administration plans to use OFCCP to curtail DEI programs in the federal contracting community, backtracking on its promise on the campaign trail and shifting the agency’s focus to ensuring merit-based hiring rather than focusing on affirmative action compliance.

As this executive order becomes effective, some states may choose to step in and mandate affirmative action plans that essentially adopt the existing federal affirmative action framework for employment practices at the state level. This is more likely in states like California, Illinois, New York and New Jersey.

For federal contractors, this order indicates a shift in compliance requirements and adjustments to workforce planning strategies. As the regulatory landscape evolves, consult legal counsel to understand how these changes affect your operations and policies going forward.