Capital Edge’s Tip Line #19: Executive Order: Addressing DEI Discrimination by Federal Contractors

Capital Edge Tip Line – May 4, 2026

Executive Order: Addressing DEI Discrimination by Federal Contractors – Edition 19

In this week’s Capital Edge Tip Line, CEO Chad Braley breaks down the March 26th Executive Order, titled "Addressing DEI Discrimination by Federal Contractors." As DEI-related directives expand, he outlines what contractors need to know and how to stay ahead.

Key Updates from This Week’s Tip Line

What You Need To Know

What’s happening? DEI-related directives are expanding in the March 26th Executive Order (EO) 14398, titled “Addressing DEI Discrimination by Federal Contractors.”

• The EO gained immediate attention following a $17 million False Claims Act settlement involving DEI-related allegations on April 10th.
• A new FAR clause was added (FAR 52.222-90) and will be inserted into new contracts over $15k immediately.
• The EO applies across “contract and contract-like instruments,” including commercial item contracts and all contracts above the micro-purchase threshold.
• Consequences can include financial penalties and contract disruption, such as cancellation, termination, false claims act suit, debarment, or suspension.

How contractors can stay ahead: In order to protect yourself from penalties or contract disruption, consider the following next steps.

• Reassess previously made decisions against the new EO and FAR clause.
• Review internal policies and procedures against the requirements.
• Evaluate or implement contractor supply chain certifications and flowdowns.
• Strengthen supporting documentation and record retention.
• Train internal teams on new requirements.

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Whether you're trying to keep up with the ever-changing government contracting landscape or need help navigating the costs of non-compliance, Capital Edge is here to help and respond.

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