What Federal Contractors Need to Know About the New DEI Contract Clause

On April 17, 2026, the FAR Council issued guidance making EO 14398 a reality for federal contractors and subcontractors. This order prohibits racially discriminatory DEI activities and requires the inclusion of the new clause, FAR 52.222-90, in U.S. based solicitations and contracts starting April 24, 2026. Agencies must also make efforts to modify existing contracts by July 24, 2026. Non-compliance poses serious risks, including contract cancellation, suspension, or debarment from future government work. Compliance is also “material to the Government’s payment decisions” under the False Claims Act, opening the door to treble damages and qui tam litigation. While the FAR Council is seeking clearance for broader reporting requirements, agencies can request records for individual compliance investigations now. Join this webinar for insights on the new clause, its implications for subcontractors, early enforcement, and actionable steps your organization can take.