Trump administration proposes to eliminate OFCCP, move other laws

The Department of Labor’s (DOL) fiscal year (FY) 2026 proposed budget would eliminate the Office of Federal Contractor Compliance Programs (OFCCP) effective October 1, 2025. According to the budget, the rescission of Executive Order (EO) 11246 “permanently removes the primary basis for OFCCP’s enforcement authority and program work.” The budget document goes on to propose transferring the OFCCP’s responsibilities under Section 503 of the Rehabilitation Act to the Equal Employment Opportunity Commission (EEOC), and the DOL’s Veterans’ Employment and Training Services (VETS) would take over enforcement of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).

Congress will have to approve moving responsibility for Section 503 to the EEOC because the statute specifies the Labor Secretary would enforce that statute. As mentioned in last month’s edition, the OFCCP laid off a majority of its employees in May, but a federal district judge ordered the agency to reinstate those employees.

Recent Supreme Court decision on FCA may limit DOJ’s use against DEI