Warp Speed Ahead: Agencies Move Quickly to Implement Anti-DEI Clause

Federal contractors have begun receiving contract modifications implementing a newly mandated DEI clause established by Executive Order 14398, with the FAR Council issuing a memorandum creating implementing clause FAR 52.222-90. Agencies were required to insert the clause in new solicitations by April 24, 2026, and contracting officers must make efforts to bilaterally modify existing contracts by July 24, 2026. The clause prohibits race- and ethnicity-based disparate treatment in recruitment, hiring, contracting, program participation, or allocation of company resources, and contractors who do not agree to the modifications may face termination.