FAR Council Requests Mandatory EO 14398 DEI Disclosures

April 22, 2026

What's New

The Federal Acquisition Regulatory (FAR) Council has asked the White House Office of Management and Budget (OMB) for approval for federal agencies to begin collecting from federal contractors and subcontractors all “books, records, and accounts” needed to assess compliance with Executive Order (EO) 14398, Addressing DEI Discrimination by Federal Contractors. President Trump’s new DEI EO requires contractors to refrain from “racially discriminatory DEI activities” and to assess and report whether their subcontractors are engaged in such conduct.

Under the Paperwork Reduction Act, OMB must approve the recordkeeping requirements associated with federal laws, regulations, and executive orders. We expect OMB to approve the request shortly, as the April 26, 2026, deadline for federal agencies to comply with EO 14398 approaches.

What It Means

A supporting statement from the FAR Council affirms several key facts of interest:

1. there will be a new clause, FAR 52.222-90, required of contracts valued above the micro-purchase threshold (currently at $15,000);
2. once approved, there will be an EO 14398 “flow-down” requirement to subcontractors; and
3. the FAR Council expects more than 6,000 agency inquiries annually into contractor DEI activities.

What You Should Do

Federal contractors and subcontractors should alert their procurement and government affairs staff to be on the lookout for:

1. contract amendments or guidance from contracting agencies on how to comply with EO 14398; and
2. any flow-down requirements or inquiries into subcontractor DEI activities.

CWC has received several reports of subcontractor DEI “certification” requests, though none have been formally approved by OMB.

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