Will the Trump Administration Investigate a Major Defense Contractor over DEI?

By Robert Nichols and Logan Kemp

 

We have previously discussed (here and here) that the Trump Administration issued two DEI executive orders: Executive Order 14151 titled “Ending Radical and Wasteful Government DEI Programs and Preferencing,” and Executive Order 14173 titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” A recent article by Christopher Rufo, a prominent anti-DEI activist with influence in the Trump Administration, suggests that the Trump Administration may investigate Lockheed Martin under these orders. Contractors and grantees should take notice.

 

Summary of Trump Administration’s DEI Executive Orders

Executive Order 14151 directs federal agencies to terminate existing DEI related contracts and grants, terminate DEI related performance requirements for contractors and grantees, and provide a list of contractors and grantees who provided DEI related activities.

 

Executive Order 14173 revokes certain previous affirmative action executive orders. It also requires that future contracts and grant awards contain a term requiring the contractor or grantee (1) agree that its compliance in all respects with all applicable federal anti-discrimination laws is material to the Government’s payment decisions for purposes of the False Claims Act, and (2) to certify that it does not operate any programs promoting DEI that violate any applicable federal anti-discrimination laws.

 

New Article Published by Christopher Rufo

Christopher Rufo, an activist behind many of the Trump administration’s anti-DEI initiatives (see, e.g., Wall Street Journal, New York Times, and PBS), recently published an article alleging Lockheed Martin awarded employee bonuses based on race. He then invited, by name, the new head of the Civil Rights Division of the Department of Justice, Harmeet Dhillon, to investigate Lockheed Martin over this alleged practice. It remains to be seen what the Department of Justice will do, if anything, about this report. But Dhillon has previously said Rufo is “doing God’s work” and Rufo has called Dhillon a “superstar.”

 

Bottom Line

Rufo’s article should serve as a reminder to contractors and grantees of the Trump Administration’s DEI Executive Orders. It should also serve as a warning that the Administration may take an interest in past practices that it views as having violated civil rights laws.

If you have any questions about how the Trump Administration’s DEI executive orders or other Administration actions that may impact your business, please contact Nichols Law at rnichols@nichols.law, lkemp@nichols.law, or 202-846-9838.

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