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January 2025: the federal reversal that sets the frame
Executive Order 14173, dated January 21, 2025, states a policy of ending discriminatory or illegal preferences in federal agencies. It revokes several earlier executive actions, including Executive Order 11246, which had governed federal contractor affirmative action. Its revocations apply to the actions it names. It does not, by itself, repeal federal civil-rights statutes.
For federal contractors, the order allowed a 90-day period in which they could continue to follow the regulatory scheme in effect on January 20, 2025. That transition window closed in spring 2025. The order also directs that contract and grant terms address compliance with federal anti-discrimination laws, and it calls for certification regarding programs that violate those laws.
The order frames its approach as enforcing civil-rights law and merit-based opportunity. Its statements about the effects of DEI are the order’s own policy claims. They are not measured findings about aerospace outcomes.
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Defense: what GAO counted
The clearest workforce figures in the record concern the Department of Defense. A Government Accountability Office report, Department of Defense: DEI Workforce Reductions (GAO-25-107397), says the FY2024 National Defense Authorization Act required DOD to change its DEI workforce, including limits on establishing or filling certain positions. GAO further reports that the 2025 executive orders directed termination of federal DEI programs and abolition of DOD DEI offices.
41 positions
After earlier restructuring, DOD abolished or restructured all 41 remaining civilian and military positions whose primary duties related to DEI. DOD also disbanded a federal DEI advisory committee and started a task force. The figure counts DOD positions only. It does not measure how many aerospace employees or contractor staff were affected. The GAO report page reviewed did not display a publication date, so confirm the date on GAO’s site before citing it.
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Contractors were not a major channel
GAO also reports that DOD did not widely use contractors to develop and implement its DEI activities. The earlier work it describes was largely internal: training, support for committees and working groups, maintaining and analyzing data, and meeting reporting requirements. That is a finding about DOD’s own practice, not about the aerospace firms that build for it.
FAA: pilot hiring and grant terms
The most direct aviation action is an FAA announcement dated February 13, 2026. Secretary Sean P. Duffy said the agency was issuing a new mandatory Operations Specification requiring commercial airlines to formally commit to merit-based pilot hiring. Under the release, carriers would have to certify that the practice had been terminated, and noncompliance could lead to a federal investigation.
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The release grounds the requirement in federal aviation law, which it says authorizes minimum safety standards, and it emphasizes technical knowledge, cognitive skills, qualifications, and experience. FAA Administrator Bryan Bedford said:
“At the FAA, the safety of passengers is our number one priority. It is a bare minimum expectation for airlines to hire the most qualified individual when making someone responsible for hundreds of lives at a time. Someone’s race, sex, or creed, has nothing to do with their ability to fly and land aircraft safely.”
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That is the agency’s stated position. Nothing in the announcement establishes a causal link between DEI programs and safety outcomes, and no independent study establishing such a link is part of the record discussed here.
Active FAA grants
The FAA’s FAQ on active grants addresses a narrower question. Citing a July 2, 2025 Department of Transportation letter, it asks: “if an active grant contains requirements relating to Executive Order (EOs) as defined by the letter, will FAA enforce compliance with those EOs?” The answer is that, “where and as consistent with law,” the FAA will not enforce compliance with certain executive orders issued between January 20, 2021 and January 20, 2025 that concern listed areas, including DEI goals. This applies to active FAA grants. It does not extend to every federal grant or contract.
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Federal contractors: the March 2026 clause
A March 26, 2026 White House executive order, Addressing DEI Discrimination by Federal Contractors, is the document that reaches the supply chain. To the extent permitted by law, it directs agencies to add a specified clause to covered federal contracts and contract-like instruments, including subcontracts and lower-tier subcontracts.
What counts as racially discriminatory DEI activity
For the order’s purposes, “racially discriminatory DEI activities” means disparate treatment based on race or ethnicity in recruitment, employment, contracting, program participation, or allocation or deployment of resources. That is the order’s definition and the mechanism it sets up. It is not a finding that any particular aerospace company has violated it.
What the clause requires
- Reporting and record-access requirements for the contractor.
- Reporting of known or reasonably knowable subcontractor conduct within the defined activities.
- Possible contract remedies for noncompliance.
How the clause reaches subcontractors
Acquisition.gov reported on May 15, 2026 on FAR model-deviation updates posted April 20, 2026, which it ties to Executive Order 14398. A model deviation is the template agencies use to put a FAR change into effect before the formal FAR text is revised. The updates include changes to FAR 9.4 on suspension and debarment, a new subpart 22.22, and a new clause, 52.222-90 (APR 2026). They also add that clause to the table of clauses required to flow down to subcontracts for commercial products or services under clause 52.244-6 (APR 2026).
In practice, a prime contractor holding a covered instrument may have to pass the clause to its subcontractors, including subcontracts for commercial products or services. Whether a particular subcontract carries it depends on the instrument and its date, so the reach cannot be settled from a summary.
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The most common mistake is treating these layers as one rule. The table below shows which instrument may apply to each employer type. Applicability depends on the actual contract, grant, or certificate, so treat each row as a starting point for checking.
Quick Recap
| Employer or role | Instruments documented in this record | What to check |
|---|---|---|
| Federal agency, including DOD civilian and military offices | Executive Order 14173; FY2024 NDAA workforce limits; the 2025 DOD restructuring GAO describes | Position changes and reorganizations within the agency |
| Commercial airline | FAA Operations Specification announced February 13, 2026 | Whether the carrier has certified merit-based pilot hiring; noncompliance could lead to a federal investigation |
| Active FAA grant recipient | FAA active-grant FAQ based on the July 2, 2025 DOT letter | Whether the grant contains requirements tied to the executive orders the letter defines; enforcement is limited “where and as consistent with law” |
| Federal prime contractor on a covered contract | March 26, 2026 executive order; clause 52.222-90 (APR 2026) once added | Whether the contract includes the clause, plus its reporting, record-access, and remedy terms |
| Subcontractor, including lower-tier | Flow-down under the FAR updates reported May 15, 2026, including clause 52.244-6 (APR 2026) for commercial products or services | Whether the subcontract carries the clause and what reporting obligations it sets |
| Private aerospace company with no covered federal contract, grant, or FAA certificate at issue | No rule in this record applies | Other law may apply; it is outside this article’s scope |
What the record does not establish
- Outcomes. No figures show changes in aerospace hiring, retention, productivity, costs, or workforce composition, for any employer or for the sector.
- Safety. The FAA states its position, but no independent evidence links DEI programs to aviation safety.
- Company practices. No verified inventory exists of how individual aerospace firms have changed their programs. Statements by individual firms or officials should not be read as industry-wide evidence.
- Litigation. This record does not give a complete account of court outcomes. Check current rulings before relying on any order’s terms.
- Final contract terms. FAR implementation can change, and the clause’s application depends on each instrument.
If you work in or hire for aerospace
- Ask your employer whether it holds federal prime contracts, subcontracts, or FAA grants. The rules above attach to those instruments, not to the aerospace label.
- If you are on a covered contract or subcontract, request the applicable clause and its reporting obligations in writing. Contract-specific advice from counsel is the right next step; this article is not legal advice.
- If you are applying to an airline as a pilot, compare the carrier’s stated hiring criteria with the qualifications the FAA release emphasizes: technical knowledge, cognitive skills, qualifications, and experience.
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