DEI Clause

Given the slew of Executive Orders (EOs) last year focusing on diversity, equity, and inclusion (DEI) and roiling the funding and operations of recipients of federal financial assistance such as universities and nonprofits, recipients may be forgiven for passing over EO 14398, dated March 26, 2026. As we’ve been covering (here and here), EO 14398 marks a second phase of the administration’s focus on “racially discriminatory DEI activities.” Where EOs from 2025 focused on broad policy shifts and internal agency operations, 2026 EOs seek prospective operationalization of the administration’s policy preferences by baking restrictions on DEI activities into federal contracts.

Continue Reading Recipients of Federal Financial Assistance Can Look to the New DEI Clause to Prepare for Potential Increased Scrutiny of Their Own Awards

Federal contractors looking for the “DEI issue” in FAR 52.222-90 may be looking in the wrong place. Yes, the clause is about what Executive Order 14398 calls “racially discriminatory DEI activities.” But that’s only the starting point. The new clause also reaches subcontract flowdowns, records access, reporting obligations, bilateral modifications, suspension and debarment, and False Claims Act (FCA) risk. This isn’t just an HR issue, and it isn’t just a DEI issue. It is a contract-administration issue, a supply-chain issue, and an invoice issue all at once.

Continue Reading Everything Everywhere All at Once: The Contractor DEI Clause Hits HR, Supply Chains, Invoices, and Subcontracts