Understanding Trump’s Day 1 Executive Orders: Guide for Contractors & Grantees
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On his first day in office, President Trump issued several Executive Orders (EOs) that will impact government contracts and grants. Some important EOs included the “Terminating The Green New Deal”, which aims to promote domestic energy production, and the “Establishing and Implementing the President’s ‘Department of Government Efficiency’”, which aims to modernize federal technology. Other EOs included the repeal of the “Equal Employment Opportunity” policy, the “America First Trade Policy”, and a directive to terminate “diversity, equity, and inclusion” (DEI) and “environmental justice” programs.
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Impact of President Trump’s Executive Orders on Contracts and Grants
On January 20th, President Trump issued several Executive Orders (EOs) on his first day in office. These will affect pending, active, and future contracts and grants. These initial EOs, many of which reverse previous Administration policies, are applicable across government agencies. They will influence federal, state, and local awardees, including contractors and grant recipients. This article provides a brief exploration of these EOs.
President Trump is issuing EOs at an accelerated pace. Many will impact government contractors and grant recipients. On January 21 (Day 2), he issued an EO on “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which rescinds EO 11246, “Equal Employment Opportunity”. This significant change impacts a procurement policy that has been in effect for nearly 60 years. Further analysis of this EO will be provided shortly.
Understanding the Newly Issued EOs
- “Terminating The Green New Deal”: This EO promotes domestic energy production to lower energy costs. It rescinds 12 Biden Administration EOs related to climate policies and terminates related programs and contracts.
- “Establishing and Implementing the President’s ‘Department of Government Efficiency’”: This EO establishes the Department of Government Efficiency (DOGE) for modernizing Federal technology to maximize government efficiency and productivity.
- “America First Trade Policy”: This memorandum announces a new U.S. trade policy that promotes investment, enhances industrial and technological advantages, and defends economic and national security. It will conduct reviews to implement this trade policy.
- “Ending Radical and Wasteful Government DEI Programs and Preferencing”: This EO terminates “diversity, equity, and inclusion” (DEI) and “environmental justice” programs.
- “Gender Ideology”: This EO recognizes only two sexes in federal policies and language, male and female.
- “Hiring Freeze”: This EO imposes a hiring freeze on all federal civilian employees.
- “Return to In-Person Work”: This EO requires federal employees to return to their respective duty stations on a full-time basis.
IMPACT: The true impact of these EOs will be apparent once agencies start implementing their mandates and issuing new rules. Contractors and grant recipients are advised to closely monitor these developments. For updates on all the Executive Orders and announcements from the Trump Administration, visit our dedicated Trump Administration Resource Center.
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