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ExplainerFederal ContractingCompliance Explainer· 3 min read· in Careers & Work

OFCCP Ends Mandatory Affirmative Action for Federal Contractors Following Revocation of Executive Order 11246

The revocation of a 60-year-old executive order has eliminated race and gender affirmative action mandates for federal contractors. However, legal advisors warn that strict compliance requirements for veterans and individuals with disabilities remain fully in force.

By Madison Lane

In short

  1. President Trump revoked Executive Order 11246, ending the requirement for federal contractors to maintain race and gender-based affirmative action plans.
  2. The OFCCP immediately ceased enforcing demographic workforce balancing and internet applicant tracking requirements tied to the 1965 order.
  3. Affirmative action requirements for protected veterans and individuals with disabilities remain fully enforceable under separate statutes.

The perception across the corporate landscape is that federal affirmative action is entirely dead. Following the revocation of Executive Order 11246, which historically covered 25,000 firms and 20% of the U.S. workforce, many federal contractors assumed their compliance obligations to the Office of Federal Contract Compliance Programs (OFCCP) had evaporated overnight.[1][4]

That assumption is a costly miscalculation. While the mandate to maintain written affirmative action plans for women and racial minorities has indeed ended, the OFCCP remains active, and two major compliance pillars—covering veterans and individuals with disabilities—remain fully enforceable.[1][4]

The shift stems from Executive Order 14173, signed in early 2025, which revoked the 60-year-old EO 11246. Originally issued by President Lyndon B. Johnson in 1965, the landmark order had required companies doing business with the federal government to proactively track demographic data and correct disparities.[1]

The new directive, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," characterized the previous diversity, equity, and inclusion mandates as an "unlawful, corrosive, and pernicious identity-based spoils system."[1]

Executive Order 11246 governed federal contractor affirmative action for six decades before its revocation.

As a result, the Department of Labor ordered the OFCCP to immediately cease holding contractors responsible for race- and gender-based affirmative action, effectively nullifying the requirement for organizations with 50 or more employees and $50,000 in contracts to maintain those specific demographic plans.[1]

For human resources departments, the revocation eliminated a massive administrative burden. Contractors are no longer required to conduct pay equity analyses based on race or gender, run adverse impact reviews for those categories, or comply with specific internet applicant tracking requirements tied to EO 11246.[1][4]

However, the legal landscape is bifurcated. The revocation did not touch Section 503 of the Rehabilitation Act of 1973 or the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA).[1]

Under these surviving statutes, federal contractors must still document recruitment outreach, track applicant data, and maintain audit-ready records to meet a 7% utilization goal for qualified individuals with disabilities and a 6.9% hiring benchmark for protected veterans.[1][4]

Contractors must still maintain audit-ready documentation for veteran and disability outreach.

Civil rights organizations have strongly condemned the rollback. A comprehensive report by Human Rights Watch characterized the revocation as part of a broader effort that has dismantled federal civil rights enforcement, leaving vulnerable workers without adequate remedies.[2]

The watchdog group noted that revoking the 60-year-old rule eliminated a bedrock protection for millions of people employed by federal contractors, warning that the shift could have a chilling effect on workers alleging unfair treatment.[2]

Meanwhile, the structural future of the OFCCP itself hangs in the balance. For the second consecutive year, the Office of Management and Budget has proposed eliminating the agency's $101 million budget entirely.[3]

The fiscal year 2027 budget proposal seeks to defund the OFCCP and transfer its remaining statutory functions regarding veterans and disability affirmative action to a newly expanded Office of Civil Rights.[3]

The Office of Management and Budget has proposed eliminating the OFCCP's funding entirely by 2027.

A previous attempt to move these responsibilities to the Equal Employment Opportunity Commission (EEOC) in the 2026 budget was rejected by Congress, which ultimately maintained the OFCCP's funding with only a 10% reduction.[3]

Until legislative and regulatory changes are fully formalized by Congress, legal advisors are warning federal contractors and subcontractors that they must continue to observe their existing obligations under Section 503 and VEVRAA.[3]

The practical reality for the federal contracting sector is a period of intense transition. Companies must untangle decades of integrated compliance infrastructure, separating the now-defunct race and gender tracking from the legally mandated disability and veteran reporting.[4]

Jargon, explained

Executive Order 11246
A 1965 presidential directive that required federal contractors to take affirmative action to ensure equal employment opportunity based on race, color, religion, sex, and national origin.
OFCCP
The Office of Federal Contract Compliance Programs, a Department of Labor agency responsible for ensuring that companies doing business with the federal government comply with non-discrimination laws.
VEVRAA
The Vietnam Era Veterans' Readjustment Assistance Act, which requires federal contractors to take affirmative action to employ and advance protected veterans.
Section 503
A section of the Rehabilitation Act of 1973 that prohibits federal contractors from discriminating against individuals with disabilities and requires affirmative action to recruit them.

Common questions

Did all affirmative action for federal contractors end?

No. While race and gender-based affirmative action plans are no longer required, contractors must still maintain affirmative action programs for protected veterans and individuals with disabilities.

Does this change the Civil Rights Act of 1964?

No. Title VII of the Civil Rights Act still prohibits employment discrimination based on race, color, religion, sex, or national origin. The revocation only removes the proactive affirmative action requirements specific to federal contractors.

What happens to the OFCCP now?

The agency is currently operating with a reduced budget and focusing solely on disability and veteran compliance. The White House has proposed defunding the agency entirely by 2027 and moving its remaining duties to a new Office of Civil Rights, though Congress must approve this change.

Competing readings

Compliance & Legal Advisors

Focuses on the practical regulatory shift and the necessity of maintaining veteran and disability tracking.

Legal analysts emphasize that while the headline-grabbing race and gender affirmative action mandates have ended, the administrative apparatus of federal contracting remains complex. Advisors warn that companies prematurely dismantling their entire compliance infrastructure risk severe penalties under surviving statutes like VEVRAA and Section 503. Their primary concern is ensuring contractors do not conflate the end of EO 11246 with the end of all OFCCP oversight.

Civil Rights Advocates

Argues that the revocation removes a foundational protection for marginalized workers.

Human rights and labor organizations view the revocation of EO 11246 as a severe blow to workplace equality. They argue that the 1965 directive was a bedrock civil rights protection that forced historically exclusionary industries to open their doors to women and minorities. By removing the proactive requirement to track and correct demographic disparities, advocates warn that the federal government is abandoning its leverage to ensure fair hiring practices among the nation's largest employers.

Federal Administration

Frames the previous mandates as discriminatory and advocates for a strictly merit-based system.

The administration's explicit rationale for the revocation is that demographic affirmative action inherently violates the principles of merit and equal opportunity. By characterizing diversity and equity mandates as an 'identity-based spoils system,' the executive branch argues that true civil rights enforcement requires colorblind and gender-neutral hiring. This perspective drives the ongoing budgetary efforts to completely defund the OFCCP and decentralize its remaining functions.

Compliance & Industry Analysts 50%Civil Rights Advocates 50%
Compliance & Industry Analysts
Focuses on the practical regulatory shift and the necessity of maintaining veteran and disability tracking.
Civil Rights Advocates
Argues that the revocation removes a foundational protection for marginalized workers.

Perspectives this story doesn't cover

  • Federal Contractors
  • Disabled Workers
  • Protected Veterans

Sources

Source coverage

4 outlets

2 viewpoints surfaced

Compliance & Industry Analysts 50%Civil Rights Advocates 50%
  1. [1]Littler MendelsonCompliance & Industry Analysts

    President Trump Revokes 60-Year-Old Executive Order Requiring Equal Employment Opportunity in Government Contracting

    Read on Littler Mendelson →
  2. [2]Human Rights WatchCivil Rights Advocates

    Remedies Abandoned: US Civil Rights Enforcement Under the Trump Administration

    Read on Human Rights Watch →
  3. [3]AffirmityCompliance & Industry Analysts

    The future of the Office of Federal Contract Compliance Programs (OFCCP) is again in doubt

    Read on Affirmity →
  4. [4]Factlen Editorial TeamCompliance & Industry Analysts

    Synthesis by Factlen editorial team

    Read on Factlen Editorial Team →

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