Federal contractor DEI clauses convert policy disagreement into certification risk
Fenwick’s analysis of the March 2026 executive order says agencies must add a clause prohibiting “racially discriminatory DEI activities,” with flow-down obligations, reporting and records access, possible termination or suspension, and potential False Claims Act theories.
BY ESG DESK · MAY 15, 2026 · 1 MIN READ
Fenwick’s analysis of the March 2026 executive order says agencies must add a clause prohibiting “racially discriminatory DEI activities,” with flow-down obligations, reporting and records access, possible termination or suspension, and potential False Claims Act theories. The legal work is immediate and practical: audit HR, mentoring, supplier diversity, subcontract language and public-facing DEI content before those representations become payment-risk certifications.