As discussed in our March 30, 2026, client alert, Déjà Vu: New Executive Order Outlines Restrictions on Contractor and Subcontractor DEI Activity, President Trump issued Executive Order 14398 (EO 14398), Addressing DEI Discrimination by Federal Contractors, on March 26, 2026. The EO declared DEI activities “unethical and often illegal,” required a new mandatory contract clause for federal contracts and subcontracts, and directed the Federal Acquisition Regulatory (FAR) Council to issue an implementing deviation. That deviation has now arrived. At the same time, a coalition of higher education and government contractor associations has filed suit seeking to block the underlying executive order.