On March 26, 2026, President Trump issued Executive Order 14398 ("Addressing DEI Discrimination by Federal Contractors"). The new Executive Order supplements previous executive orders and other Trump Administration enforcement initiatives by adding a six-paragraph clause to all federal contracts. The new Executive Order addresses disparate treatment based on race or ethnicity in "recruitment, employment, contracting, program participation, or allocation or deployment of an entity's resources." The Executive Order introduces a new enforcement regime, with every new contract being the basis for a potential DEI audit conducted by the contracting agency itself. Prime contractors also are required to report knowable subcontractor noncompliance. The new Executive Order authorizes contracting agencies to cancel the contract and make the contractor ineligible for future contracts. In short, the EO introduces a much more aggressive enforcement regime to the Administration's anti-DEI efforts.