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Addressing DEI Discrimination by Federal Contractors

This Executive Order mandates that all federal contracts include a clause prohibiting contractors and subcontractors from engaging in racially discriminatory DEI activities, defined as disparate treatment based on race or ethnicity in employment, contracting, or resource allocation. It requires agencies to insert this clause within 30 days, empowers contract termination and debarment for noncompliance, invokes False Claims Act liability, and directs the Federal Acquisition Regulatory Council to amend regulations within 60 days.