President Trump Rescinds 78 Executive Orders and Presidential Memorandums

On January 20, 2025, the White House issued an Executive Order (EO) that revoked 78 executive orders and presidential memorandums issued by President Biden between January 21, 2021 and January 19, 2025 that do not align with Trump Administration policies.  Of those revoked by the EO, several impact government contracts and federal procurement, including, but not limited to:

• EO 13985 of January 20, 2021 (Advancing Racial Equity and Support for Underserved Communities Through the Federal Government);
• EO 13989 of January 20, 2021 (Ethics Commitments by Executive Branch Personnel);
• EO 14008 of January 27, 2021 (Tackling the Climate Crisis at Home and Abroad);
• EO 14030 of May 20, 2021 (Climate-Related Financial Risk);
• EO 14055 of November 18, 2021 (Nondisplacement of Qualified Workers Under Service Contracts);
• EO 14057 of December 8, 2021 (Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability);
• EO 14069 of March 15, 2022 (Advancing Economy, Efficiency, and Effectiveness in Federal Contracting by Promoting Pay Equity and Transparency);
• EO 14110 of October 30, 2023 (Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence); and
• Presidential Memorandum of January 14, 2025 (Revocation of National Security Memorandum 5, Strengthening the Policy of the United States Toward Cuba).

To effectuate the revocations, the EO directs the heads of each agency to take immediate steps to end implementation of diversity, equity, and inclusion programs and policies.  Similarly, the Director of the Domestic Policy Council (DPC) and the Director of the National Economic Council (NEC) must review all government actions taken pursuant to the revoked orders, memoranda, and proclamations listed in the EO and take necessary steps to rescind, replace, or amend such actions as appropriate.  Finally, within 45 days of the EO, the DPC Director, the NEC Director, and the National Security Advisor must submit a list of additional orders, memoranda, proclamations, and National Security Memoranda issued by the Biden Administration to identify additional rescissions.

A common question from government contractors is: What happens when an executive order is revoked but the implementing regulations still exist and/or the implementing FAR clauses are still in contracts?

The impact of the revocations will not be entirely known until agencies begin taking actions such as rescinding any rules, regulations, guidelines, or policies, implementing or enforcing the revoked executive orders.  Importantly, the EO directs agency heads to take immediate action on executive orders related to DEI programs and policies, whereas other executive orders generally undergo agency review to determine next steps to rescind, replace, or amend implemented rules, regulations, guidelines, or policies. 

While contractors might expect agencies to take immediate regulatory actions in response to executive orders, such implementation historically has taken months or years to complete in some cases.  

To amend the FAR, the DoD, GSA, and NASA, acting on behalf of the FAR Council, or the Administrator of the Office of Federal Procurement Policy (OFPP), issue proposed and final rules under the “notice-and-comment” procedures of the Administrative Procedure Act (APA).  The APA typically requires four steps: (1) submission of the proposed rule; (2) an open comment period; (3) publication of the final rule; and (4) a 30-day wait for the rule to take effect.  Agencies can invoke the “good cause” exception and use interim final rulemaking if the agency finds notice and comment will be “impracticable, unnecessary, or contrary to the public interest” and instead take post-promulgation comments.  Contractors will be notified if interim final rulemaking is used, in which case the rules are effective immediately.  Most commonly, amendments to the FAR are applied to contracts entered into on or after the date on which the amendment goes into effect, and not to preexisting contracts, unless there is clear congressional intent to the contrary.  In accordance with FAR 1.108, if Congress wants to apply a newly enacted statute to alter the obligations under preexisting contracts, it should do so clearly and unambiguously, with the understanding that any such retrospective changes could require the government to provide financial compensation to affected contractors.

Contractors can ask for guidance from their contracting officers on how to proceed with the impacted FAR clauses in their contracts.  In addition, while contracting officers may be unable to take certain steps until actions are taken by the agencies to rescind inconsistent rules, as appropriate and consistent with applicable law, contractors should be on the lookout for further agency guidance, directives, or contract modifications.