Executive Order 13940: Aligning Federal Contracting and Hiring Practices With the Interests of American Workers

President: Donald J. Trump

Required agencies to review whether federal contractors and hiring practices disadvantaged U.S. workers and report recommendations, without a blanket ban on foreign workers.

Status: In effect. Sources: Federal Register: Executive Order 13940 · Federal Register 2020 executive order disposition table · DOL OIG management challenges, January 2026.

Is Executive Order 13940 still in effect? Yes. Executive Order 13940, signed August 3, 2020, remains unrevoked. Its initial contracting review had a 120-day deadline, but the Department of Labor’s January 2026 management-challenges report still cites the order’s Labor and Homeland Security worker-protection requirements.

What does Executive Order 13940 do?

The order assigned these duties: Federal agencies named in the signed order — Required agencies to review whether federal contractors and hiring practices disadvantaged U.S. workers and report recommendations, without a blanket ban on foreign workers.

Later evidence reviewed September 24, 2026: OMB issued memorandum M-21-08 directing agency reviews of contractor hiring and labor practices under EO 13940. Issuing guidance does not establish that every contractor changed its practices. OMB contractor review memorandum.

Administration position: The stated directions and policy are summarized from the signed order. See the official text for its precise legal terms.
SignedAugust 3, 2020
IssuerPresident Donald J. Trump
TermFirst presidential term

Before and after

Before the order

The order addressed aligning federal contracting and hiring practices with the interests of american workers. The prior legal and administrative context is identified in its linked full text; this review does not assume every prior policy was displaced.

After the order

The signed order’s directions are explained above.

OMB issued memorandum M-21-08 directing agency reviews of contractor hiring and labor practices under EO 13940. Issuing guidance does not establish that every contractor changed its practices.

Who had to do what

Agency / officialWhat the signed order directedDeadline / timing
Heads of agencies entering contractsReview fiscal 2018–2019 contracts/subcontracts for temporary foreign labor and offshoring, effects on US employment and national security, and displaced-worker assistance eligibility. Assess procurement/economic/security effects and propose appropriate corrective actions.Report results to OMB within 120 days, including corrective timeframes and appropriate presidential proposals.
All agency headsWith OPM, review employment policies for compliance with federal citizenship requirements; report findings, proposed corrections, implementation timeframes, and appropriate presidential proposals to OMB.Within 120 days.
OPM DirectorCoordinate agency reviews of federal employment-policy compliance with EO 11935 and the cited appropriations provision.Agency reports due within 120 days.
Secretary of LaborTake lawful, appropriate action protecting US wages and working conditions from adverse effects of H-1B employment, including at third-party sites, and ensure covered employers follow the cited labor-condition requirements.Within 45 days.
Secretary of Homeland SecurityTake lawful, appropriate action protecting US wages and working conditions from adverse effects of H-1B employment, including at third-party sites, and ensure covered employers follow the cited labor-condition requirements.Within 45 days.

Source: Signed Federal Register text.

What happened next

EO 13940 signed; its Federal Register publication followed.

OMB issued memorandum M-21-08 directing agency reviews of contractor hiring and labor practices under EO 13940. Issuing guidance does not establish that every contractor changed its practices.