EliminatedMajor Impact Budget PDF p. 48

Office of Federal Contract Compliance Programs

(OFCCP)

Department of Labor
Proposed Cut
$101M
% Reduction
100%
Action Type
elimination
Who Is Served

26 million workers employed by federal contractors; anti-discrimination enforcement

What This Program Does

The Office of Federal Contract Compliance Programs (OFCCP) enforces laws that prohibit companies doing business with the federal government from discriminating based on race, sex, disability, religion, sexual orientation, and other protected characteristics. It has operated within the Department of Labor since 1965, conducting audits and investigations of federal contractors to ensure equal employment opportunity. The office also requires contractors to take affirmative steps to provide fair hiring and employment practices.

Who Would Be Affected

Approximately 26 million workers employed by roughly 25,000 federal contractor establishments would lose the primary federal agency responsible for monitoring workplace discrimination in their companies. These workers span nearly every industry, including defense, technology, construction, and healthcare. Women, racial minorities, veterans, and workers with disabilities employed by federal contractors are particularly affected, as OFCCP has historically focused enforcement efforts on ensuring equal treatment for these groups.

What This Cut Would Mean

Eliminating the OFCCP would end federal audits and compliance reviews of contractor workplaces, removing the main enforcement mechanism ensuring federal contractors follow anti-discrimination and equal opportunity laws. Workers at federal contractor companies who experience discrimination would need to rely on other agencies, such as the Equal Employment Opportunity Commission, which handles complaints from all employers but already faces significant caseload backlogs. The administration characterizes OFCCP's requirements as overreach related to diversity, equity, and inclusion (DEI) initiatives, while labor and civil rights analysts warn that removing dedicated contractor oversight could weaken anti-discrimination protections for millions of workers and reduce accountability for companies receiving taxpayer-funded contracts.

Administration's Stated Rationale

“Federal contractor anti-discrimination requirements considered DEI overreach; OFCCP eliminated per executive order.”

Impact Areas

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