OFCCP’s Start to 2026—Proposed Funding and a Focus on Complaints and VEVRAA

Quick Hits

• OFCCP issued an Information Collection Request on January 2, 2026, seeking to revise questions on its complaint and pre-complaint inquiry forms to align with Executive Order 14173.
• OFCCP issued a renewed Information Collection Request on January 7, 2026, seeking to extend existing recordkeeping requirements under VEVRAA.
• On January 20, 2026, an appropriation bill was introduced that proposed to fund OFCCP at $100,976,000 for fiscal year 2026. This appropriation bill passed the House of Representatives on January 22, 2026, and now moves to the Senate for final approval.

The future and focus of OFCCP has been the subject of discussion and speculation by the federal contractor community since Executive Order (E.O.) 14173 was signed in January 2025. In the lead-up to last year’s government shutdown, the House Appropriations Committee proposed to eliminate OFCCP and move oversight obligations to other federal agencies, while the Senate Appropriations Committee proposed to fund OFCCP for fiscal year (FY) 2026.

On January 20, 2026, a consolidated appropriations bill was introduced that seemingly shifted course from the previous House proposal of eliminating the agency. In the January 20 proposal, which passed in the House on January 22, OFCCP’s necessary expenses would be funded for FY 2026 at $100,976,000. While the FY 2026 proposal contains slightly less funding for OFCCP compared to FY 2025, assuming the Senate passes the bill, it appears OFCCP will have ample funding to enforce agency priorities.

This consolidated appropriations bill comes on the heels of other recent proposed regulatory action from OFCCP related to discrimination complaints and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).

OFCCP Complaints

On January 2, 2026, the U.S. Department of Labor issued an OFCCP-sponsored Information Collection Request (ICR) to the Office of Management and Budget (OMB), seeking “approval to revise questions on its complaint and pre-complaint inquiry forms to align with E.O. 14173.” The supplementary information in support of the ICR explains that applicants and employees of federal contractors and subcontractors remain able to file complaints under VEVRAA and Section 503 of the Rehabilitation Act (Section 503), but that complaints are no longer allowed under E.O. 11246.

OFCCP continues to receive and investigate complaints filed under VEVRAA and Section 503. The proposed revisions to the complaint form—while specifics have not yet been released—appear aimed at making updates to reflect the current state of the agency’s investigations, including making clear that OFCCP continues to investigate complaints of discrimination under VEVRAA and Section 503.

VEVRAA Data Collection and Compliance

On January 7, 2026, OFCCP issued a renewed ICR seeking approval to extend the recordkeeping requirements of VEVRAA such that OFCCP can continue to “carry out its responsibility to enforce VEVRAA.” The threshold for VEVRAA coverage recently increased to a contract of $200,000 or more. OFCCP’s Supporting Statement explains in its justification for the ICR that obligations continue for covered contractors in all respects, specifically calling out

• the inclusion of the equal opportunity clause in contracts;
• mandatory job listings with appropriate state or local employment service delivery systems;
• the development and maintenance of written affirmative action programs (AAP);
• invitations to job applicants to self-identify as protected veterans at the pre-offer and post-offer selection stages so that the agency and contractors can “collect valuable data needed to track the number of protected veterans who apply for open positions and the number who are hired”; and
• the adoption of a hiring benchmark.

OFCCP’s renewed ICR reiterates the importance of VEVRAA’s compliance and AAP obligations. Similar obligations for compliance and AAPs also currently remain in place pursuant to Section 503.

Next Steps

Employers may want to review current and anticipated federal contracts and subcontracts against the updated thresholds and notices to assess coverage, as well as compliance and AAP implications, and verify whether their organizations meet the employee-count and single-contract triggers for Section 503 and VEVRAA. Addressing existing and ongoing requirements under VEVRAA and Section 503, including completing mandated AAPs, is important for ensuring compliance with any legal risk related to E.O. 14173.

Ogletree Deakins’ Government Contracting and Reporting and Workforce Analytics and Compliance Practice Groups will continue to monitor developments and will provide updates on the Government Contracting and Reporting and Workforce Analytics and Compliance blogs as additional information becomes available.

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