The Trump administration revised federal acquisition rules this week requiring the government to stop considering diversity, equity and inclusion (DEI) when awarding contracts. This change aligns with the Department of Government Efficiency’s (DOGE) broader efforts to fundamentally transform federal operations.
The General Services Administration (GSA) on Tuesday announced changes to the Federal Acquisition Regulations (FAR) that are meant to align with the president’s executive order aimed at restoring meritocracy and ending discrimination in the public and private sectors. The move reverses previous Biden administration executive orders that made it mandatory to consider DEI when reviewing contract proposals.
Elon Musk, who has been leading the charge to radically reform the government, praised the move on X, formerly Twitter, in advance of the GSA’s formal announcement about the changes. “Major FAR reform is needed,” Musk said in a post highlighting GSA acting administrator Stephen Ehikian’s announcement about the changes.
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“These actions are the first steps in transforming the FAR into a sensible, common sense guideline to ensure that the federal government is working with industry as an attractive partner for business,” Josh Gruenbaum, commissioner of the Federal Acquisition Service, told Fox News Digital on Wednesday.
“Coming from private industry, I know how convoluted working through government regulations that don’t make sense can be. We’re going to streamline the FAR and make it industry friendly, more efficient, and deliver cost savings and better value.”
Trump’s Day One executive order, which the GSA is aligning its actions with, directed the federal contracting process to “be streamlined to enhance speed and efficiency, reduce costs, and require Federal contractors and subcontractors to comply with our civil-rights laws.” The order also commanded the Office of Federal Contract Compliance to “immediately cease” promoting “diversity,” as well as any encouragement of federal contractors and subcontractors to engage in affirmative action-like efforts that consider race, color, sex, sexual preference, religion or national origin when making hiring decisions.
Trump’s order added that the heads of each executive agency must begin including contractual language that requires federal contractors to agree to comply with federal anti-discrimination laws. Meanwhile, language associated with DEI principles was also ordered to be removed from any federal acquisition, contracting, grant or financial assistance procedures.
“The steps taken by GSA will make it easier for industry to sell their products and services to the government,” acting administrator Ehikian said Tuesday. “GSA is leading the way in transforming government and strongly encourages other agencies to follow our lead.”
Trump and fellow Republicans have pushed hard against DEI policies in recent weeks, making the case that the government should instead focus on meritocracy. DOGE claims it has already addressed hundreds of millions of taxpayer dollars in DEI-related contract cuts, including $350 million at the Department of Education last week.
Last month, DOGE announced that taxpayers would see just over a $1 billion savings through the elimination of 104 DEI contracts.
