Executive Order 14398: Addressing DEI Discrimination by Federal Contractors

What does Executive Order 14398 do?

Within 30 days, agencies were to include the specified clause in covered contracts to the extent allowed by law. OMB was assigned guidance and the FAR Council interim guidance and rule changes, with reporting by agency heads.

Later official evidence reviewed September 26, 2026: The FAR Council posted model deviation updates in April 2026 to implement this order, including a contractor clause and suspension or debarment language. These are procurement implementation steps; the source does not establish enforcement outcomes.

Reading the operative provisions of Executive Order 14398

EO 14398 directs agencies to include a clause in covered federal contracts addressing racially discriminatory diversity, equity and inclusion practices. It sets a deadline for adding the clause to new contracts and asks agencies to apply it to existing contracts where lawful. The Federal Register text supplies the contract language and scope; it does not itself determine that a particular contractor violated Title VII.

A contract clause can require a vendor to make representations and comply with specified conditions in its federal work. Agencies must define covered practices and apply the clause consistently with civil-rights law, procurement statutes and the First Amendment. The order’s characterization of certain DEI practices is an administration position; whether conduct is unlawful depends on the facts and applicable law.

Contract termination, suspension or False Claims Act exposure would require a separate agency process and evidence that the contractor breached a valid clause or made a false representation. Existing contracts may have terms that limit unilateral changes. Vendors should review the actual clause and agency guidance. The practical effect should be tracked through solicitation language, executed contracts, agency determinations and any court rulings.