Trump Administration Proposes Elimination of OFCCP, Launches New Opinion Letter Program for Labor Guidance

Quick Hits

• The Trump administration’s budget proposal seeks to eliminate the OFCCP and transfer enforcement responsibilities for veterans and disability protections to other agencies.
• Amid the administration’s new labor policies, the DOL has launched an opinion letter program to provide clear guidance on federal labor laws to employers and workers.

On May 30, 2025, the DOL released its budget justification for the fiscal year (FY) 2026 federal budget, in which the department proposed to “eliminate” the OFCCP. The agency had been tasked with enforcing antidiscrimination compliance and affirmative action program obligations in federal contracting, but recent executive orders have limited its authority.

In the budget justification, the DOL indicated it would transfer OFCCP’s enforcement of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) to the Veterans’ Employment and Training Service (VETS), and enforcement of Section 503 of the Rehabilitation Act of 1973 would be transferred to the U.S. Equal Employment Opportunity Commission (EEOC).  

Accordingly, the DOL is not seeking any budget funding for OFCCP but is requesting a $7 million increase for the VETS. The budget document explains the DOL’s proposed budget request and outlines the agency’s policy priorities. The U.S. Congress must approve the final budget.

In its own budget justification, the EEOC said it “is the most appropriate entity to assume … responsibilities” for enforcement of Section 503 and said its FY 2026 request “includes funding for the EEOC to support this expansion of the agency’s disability anti-discrimination program.” Still, overall, the EEOC is requesting nearly $20 million less in funding as compared to the prior fiscal year.

The proposals come after President Donald Trump’s executive order (EO) 14173 revoked EO 11246, which had prohibited employment discrimination by federal contractors and mandated affirmative action programs for women and minorities. EO 14173 further seeks to eliminate employers’ “illegal” diversity, equity, and inclusion (DEI), more broadly.

EO 14173 stripped the OFCCP of much of its enforcement authority, making the agency’s future uncertain. Currently, the OFCCP retains responsibility for enforcing federal contracting nondiscrimination and affirmative action obligations for veterans and workers with disabilities under VEVRAA and Section 503. However, the acting secretary of labor had ordered OFCCP to hold all VEVRAA and Section 503 compliance evaluations in abeyance and shortly thereafter OFCCP issued updated notices to many covered contractors with active evaluations.

In April 2025, the Trump administration placed the majority of OFCCP staff on administrative leave after offering deferred resignation and voluntary early retirement options. However, that reduction in force was temporarily paused by a federal court ruling in California, which was later upheld by the U.S. Court of Appeals for the Ninth Circuit. The Trump administration has reportedly asked the Supreme Court of the United States to address the issue.

DOL Opinion Letters

On June 2, 2025, the DOL announced the launch of its opinion letter program to provide employers and workers with official interpretations of federal labor laws. The program’s goal is to “promote clarity, consistency, and transparency in the application of federal labor standards.”

The documents will be published by five enforcement agencies within the DOL: the Wage and Hour Division, the Occupational Safety and Health Administration (OSHA), the Employee Benefits Security Administration (EBSA), VETS, and the Mine Safety and Health Administration (MSHA).

“Opinion letters are an important tool in ensuring workers and businesses alike have access to clear, practical guidance,” Deputy Secretary of Labor Keith Sonderling said in a statement. “Launching this program is part of our broader effort to empower the public with the information they need to understand and comply with the laws the department enforces.”

Anyone can submit an opinion letter request to the DOL, although most are requested by employers seeking clarity on situations that are not addressed in statutes or regulations. DOL opinion letters are published allowing all to benefit from the guidance provided. 

Next Steps

The Trump administration’s budget proposal suggests that the OFCCP’s days are numbered. However, federal contractors and other employers continue to have obligations under federal antidiscrimination laws, notably Title VII of the Civil Rights Act of 1964, as well as local and state antidiscrimination laws. Federal contractors and federal money recipients also now are faced with the new obligations imposed by EO 14173 including certifications under False Claims Act liability that they do not promote unlawful DEI and comply with all federal anti-discrimination laws.

The administration’s shifting enforcement priorities and interpretation of federal equal employment opportunity and/or antidiscrimination laws make the new DOL opinion letter program more pertinent. We anticipate that DOL will publish more opinion letters in this administration.   

Ogletree Deakins will continue to monitor developments and will provide updates on the Diversity, Equity, and Inclusion Compliance, Government Contracting and Reporting, Government Contractors, Governmental Affairs, Wage and Hour, Workplace Analytics and Compliance, and Workplace Safety and Health blogs as additional information becomes available.

This article and more information on how the Trump administration’s actions impact employers can be found on Ogletree Deakins’ New Administration Resource Hub.

Follow and Subscribe
LinkedIn | Instagram | Webinars | Podcasts