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Overview: Executive Order 14173- Ending Illegal Discrimination

February 19 2025

By: Susie Cirilli

On January 21, 2025, the President issued Executive Order 14173- Ending Illegal Discrimination and Restoring Merit-Based Opportunity (“EO”). The policy of the EO is to terminate “illegal discrimination in the Federal Government.” This EO revokes the following Executive Orders:

  • Executive Order 12898- Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations
  • Executive Order 13583- Establishing a Coordinated Government-wide Initiative to Promote Diversity and Inclusion in the Federal Workforce
  • Executive Order 13672- Further Amending Equal Employment Opportunity
  • Executive Order 11478- Amending Equal Employment Opportunity
  • Executive Order 11246- Equal Employment Opportunity
  • Memorandum on Promoting Diversity and Inclusion in the National Security Workforce (2016)

DIRECTIVES

Office of Federal Contract Compliance Programs. The EO directs the Office of Federal Contract Compliance Programs (“OFCCP”), a U.S. Department of Labor agency that ensures federal contractors follow equal opportunity laws, to immediately stop: (1) promoting diversity, (2) holding federal contractors responsible for affirmative action, and (3) allowing/encouraging federal contractors to engage in “workforce balancing.”

Federal Contractors. The EO also directs federal contractors that they cannot consider race, color, sex, sexual preference, religion, or national origin in ways that violate Civil Rights Laws.

Agency Heads. The EO also directs agency heads to amend “every contract or grant award” to include: (1) a term that requires a certification of compliance with all federal anti-discrimination laws, and (2) a term requiring that the contractor/recipient certify that it does not operate “any programs promoting DEI that violate any applicable federal anti-discrimination laws.”

Office of Management and Budget and Attorney General. The EO directs OMB and the AG to (1) review and revise all government processes, directives, and guidance, (2) remove any reference to DEI and DEIA principles “under whatever name they may appear” in government documents, procedures, and the like, and (3) terminate “diversity,” “equity,” “equitable decision-making,” “equitable deployment of financial and technical assistance,” “advancing equity,” and “like mandates, requirements, programs or activities..”

Private Sector. The EO encourages the AG and agencies to encourage the private sector to abide by the provisions set forth in the EO.

WHAT DOES THIS MEAN?

Employers in the private sector and those who receive federal funding must stay up-to-date on the implications of these Orders.

  • As discussed here, the AG’s Office followed its directive in issuing the Memo on DEI. This Memo promises a report by March 1, 2025, that will outline a plan to criminally prosecute “illegal discrimination.”
  • Entities receiving grants or who are parties to a federal contract will need to certify their compliance with “anti-discrimination” laws and understand its “materiality” in the government’s decision to disburse the funds.

Prudent businesses will consult with counsel to understand if the EO affects them, the implications of this order, and the subsequent ramifications.