Key Takeaways Federal contractors and subcontractors should assess whether their existing DEI policies and initiatives include any race- or ethnicity-based disparate treatment that could constitute a violation under EO 14398 and the new FAR 52.222-90 clause. Effective April 24, 2026, all new federal contracts must include a clause prohibiting "racially discriminatory DEI activities," with existing contracts required to be modified by July 24, 2026. Non-compliance carries serious consequences, including contract cancellation, termination or suspension, debarment and potential liability under the False Claims Act. Contractors should map flowdowns across their supply chain to ensure subcontractor compliance and prepare for forthcoming agency information collection requests related to FAR 52.222-90. On March 26, 2026, President Trump issued Executive Order (EO) 14398, titled Addressing DEI Discrimination by Federal Contractors,

Key Takeaways The Executive Branch has identified Anthropic as a supply-chain risk, initiating a six-month phase-out of its AI platform, Claude, effective immediately. Contractors should immediately assess Anthropic technology use, monitor further regulatory guidance and prepare contingency plans to ensure uninterrupted compliance and performance. In response to a months-long dispute between the Department of Defense (DoD)1 and Anthropic regarding the company’s usage restrictions associated with its AI platform, Claude, President Trump directed all U.S. federal agencies in a social media post to “IMMEDIATELY CEASE all use of Anthropic’s technology,” including a “six month phase out period for agencies,” including the DoD. In conjunction with the President’s directive, Secretary of War (formerly, Defense) Pete Hegseth directed the DoD to designate Anthropic a “Supply-Chain Risk to