According to the U.S. Department of Labor’s (DOL) fiscal year 2026 proposed budget, the Department is set to fully eliminate the Office of Federal Contract Compliance Programs (OFCCP) next fiscal year, which begins October 1, 2025. The budget proposal aligns with the current administration’s broader efforts to shut down the OFCCP and its authority to audit and investigate federal contractors for potential race and sex discrimination. Earlier this year, President Trump issued Executive Order (EO) 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which rescinded Executive Order 11246. Revoking this President Johnson-era order stripped most of the OFCCP’s authority, except where otherwise outlined in statute.
The budget proposal, released on May 30, 2025, states Executive Order 14173
“permanently removes the primary basis for OFCCP’s enforcement authority and program work.
The budget proposes transferring OFCCP’s responsibilities under Section 503 of the Rehabilitation Act to the Equal Employment Opportunity Commission (EEOC). Additionally, the DOL’s Veterans’ Employment and Training Service would take over enforcement duties under the Vietnam Era Veterans’ Readjustment Assistance Acts (VEVRAA).
Congress has yet to approve the DOL’s proposed budget, and statutory amendments may be necessary to transfer authority from the OFCCP to other executive agencies.
We will continue to monitor the situation and provide updates as we learn of them.
