In the initial days after his inauguration on January 20, 2025, President Trump issued several significant executive orders. One of these, Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” will have major implications for federal contractors and grant recipients, particularly concerning affirmative action and Diversity, Equity, and Inclusion (DEI) programs. This client alert outlines the impact of this Executive Order on affirmative action programs and addresses cost allowability issues for federal contractors and grant recipients.
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