ExecutiveOrdersEO
EO 13940Executive OrderTrump 45 · R

Executive Order 13940

Aligning Federal Contracting and Hiring Practices With the Interests of American Workers

This executive order directs federal agencies to review their 2018-2019 contracts for use of temporary foreign labor and offshoring, and requires the Labor and Homeland Security Departments to take action within 45 days to protect U.S. workers from adverse effects caused by H-1B visa holders at job sites. The order aims to prioritize American workers in federal contracting and hiring, particularly during COVID-19 economic disruption.

Federal Register Open PDF 85 FR 47879

Impact dates

  1. Agency heads submit reports to OMB Director summarizing reviews, recommending corrective actions, and proposing Presidential actions

  2. Labor and Homeland Security must take action to protect U.S. workers from H-1B adverse effects

Key directives

  • Agency heads review 2018-2019 contracts for temporary foreign labor use and offshoring
  • Agency heads assess negative impacts on procurement economy/efficiency and national security
  • Agency heads review employment policies for compliance with citizenship requirements
  • Labor and Homeland Security Secretaries take action to protect U.S. workers from H-1B adverse effects within 45 days
  • Agency heads submit reports to OMB Director within 120 days with recommendations and proposed Presidential actions

Who is ordered

Timeline

Immediate

  • EO takes effect upon signing
  • agencies begin contract and employment policy reviews

Near term (90d)

  • Labor and Homeland Security must take action on H-1B worker protections by September 17, 2020
  • agencies submit reports to OMB by December 1, 2020

Long term

  • Potential corrective actions and Presidential proposals based on agency reports
  • possible restructuring of federal contracting practices regarding foreign labor and offshoring

Risks & tensions

  • H-1B provisions target 'secondary employers' and third-party job sites, suggesting focus on IT staffing/body-shop models
  • Offshoring review explicitly ties to Trade Adjustment Assistance eligibility, potentially creating worker displacement documentation
  • National security framing of both foreign labor and offshoring may justify broad contracting restrictions
  • Vague 'as appropriate and consistent with applicable law' qualifiers limit enforceability of directives
  • EO 11935 compliance review could signal renewed enforcement of citizenship requirements in federal employment
Executive Order 13940: Aligning Federal Contracting and Hiring Practices With the Interests of American Workers · Executive Orders