A March 26, 2026 Executive Order (EO) prohibits federal contractors from engaging in “racially discriminatory DEI activities” described in the presidential action as as unethical and inefficient.

The EO defines racially discriminatory DEI activities as disparate treatment based on race or ethnicity in the recruitment, employment (e.g., hiring, promotions), contracting (e.g., vendor agreements), program participation, or allocation or deployment of an entity’s resources.

The EO applies to contractors that are subject to the Federal Property and Administrative Services Act (FPASA). Under the Federal Acquisition Regulation, which implements FPASA, a contract is defined in part as “a mutually binding legal relationship obligating the seller to furnish the supplies or services…and the buyer to pay for them” and does not include grants and cooperative agreements.

While some LeadingAge provider and corporate members may act as or engage with federal contractors, most LeadingAge members are not considered federal contractors. Specifically, some of our membership may be party to a federal contract – for example a housing assistance payment (HAP) contract from the Department of Housing and Urban Development (HUD) to receive federal rental assistance to operate affordable senior housing communities; however, they are not considered federal contractors since they are not being paid to provide supplies or services to the federal government but rather are receiving federal assistance through the contract.  Similarly, healthcare providers receiving reimbursements under Medicaid or Medicare generally are considered recipients of federal financial assistance.

The March 26 Executive Order builds on previous orders by the Trump administration to promote “merit-based” actions over DEI activities; some of these previous efforts, such as an Executive Order from early March addressing DEI activities by entities receiving federal financial assistance and an Executive Order from early 2025 addressing DEI activities across a broad range of federal stakeholders, more directly impact LeadingAge membership.

LeadingAge will continue to support members in ensuring fair and equitable access to programs and services, including by using DEI-related actions to address decades of racial and ethnic discrimination in housing and healthcare systems.