On April 20, 2026, the Federal Acquisition Regulatory (FAR) Council issued agency implementation guidance for Executive Order (E.O.) 14398, “Addressing DEI Discrimination by Federal Contractors,” which President Trump signed on March 26, 2026. The guidance introduces a new contract clause — FAR 52.222-90 — and establishes tight deadlines for agencies to incorporate the clause into new and existing contracts. Federal contractors, subcontractors, and their compliance teams should take immediate steps to understand the scope of the new requirements and prepare for implementation. Contractors should take note that the implementation of this new clause may be affected by a suit filed in Maryland federal court seeking to block the executive order.

This alert summarizes the key provisions of E.O. 14398, the FAR Council’s implementing guidance, and the practical steps contractors should consider in response.