Trump orders agencies to end deals with DEI-engaging contractors

March 30, 2026

US President Donald Trump has ordered executive departments and agencies to cancel contracts with businesses that engage in diversity, equity, and inclusion (DEI) programs, in his latest bid to stamp out what he dubbed as "unethical" activities.

Trump, in a new executive order, directed that federal contracts should have new clauses stating that contractors will not engage in any "racially discriminatory" DEI activities.

The agreements should also state that contractors will be willing to submit information and reports, and provide access to records, to demonstrate compliance with the order.

Contracting agencies have the authority to cancel, terminate, or suspend contracts, as well as suspend or debar contractors, if they fail to comply with the new requirements, according to the order.