Analysis and Guidance: March 2026 Executive Order on Federal Contractors and DEI

Background

On March 26, 2026, President Trump issued an Executive Order titled, “ADDRESSING DEI DISCRIMINATION BY FEDERAL CONTRACTORS.” The Order proclaims that “racially discriminatory DEI activities means disparate treatment based on race or ethnicity in the recruitment, employment (e.g., hiring, promotions), contracting (e.g., vendor agreements), program participation, or allocation or deployment of an entity’s resources.”  

Analysis

This Executive Order holds the same logic and misleading rhetoric found in the Unlawful Discrimination Memo from the Department of Justice issued on July 29, 2025. At the time, the Alliance for Higher Education reviewed that memo, concluding that institutions did not need to alter behavior or policies in response. The Alliance also provided recommendations for best practices on DEI that would reduce, if not eliminate, risk on campuses.  

The same recommendations the Alliance offered in response to the July 2025 memo remain in place in response to this new EO. Using funds and resources to include groups—and ensuring they do not exclude any from program participation—is not illegal. It was not illegal in January 2025 and remains lawful today.

Articles by Alliance president and CEO Mike Gavin discuss and provide context about how merit requires attending to DEI. The administration’s attempt to disentangle them in training, curricula, and philosophy is not based on sound interpretation of the law, and in instances where it affects elements of higher education like medical training, can lead to potentially fatal outcomes.

The EO also defines “program participation” as “membership or participation in, or access or admission to: training, mentoring, or leadership development programs; educational opportunities; clubs; associations; or similar opportunities that are sponsored or established by the contractor or subcontractor.” Again, the Alliance’s guidance holds for this portion. Campuses would be best served to welcome all races and ethnicities to activities, as they have been doing in compliance with state and federal laws, even if particular groups are targeted or centered. This approach is both best practice and in line with the EO.  

As the Alliance recommended on its reading of Dear Colleague Question and Answer Page of the February 2025 anti-DEI Dear Colleague Letter and prior Executive Orders on Race, Gender and Citizenship, the Alliance recommends that institutions change no behavior and make this clear to their faculty, staff, students, and stakeholders.  

Clear, broad and frequent communication of that approach is critical in order to avoid self-censorship and repression of research, teaching, or dialogue.  Similarly, it is important to remember that when humans engage and participate in initiatives and programs that connect to racial disparities, there are sub-groups within them, such as gender, academic interest, socioeconomic and geographic background, and religion. There is not a monolithic approach to race in equity work, and this is a necessary nuance for institutions to consider when considering their focus on merit and legal defense. 

For additional support for how to approach your institution or organization's response to Executive Orders and/or state-level restrictions, please contact The Alliance for Higher Education.