Government policies facilitating preferential treatment for military veterans and individuals with disabilities have been reinstated, sparking renewed controversy and debate.
As of mid-2025, federal contractors are required to maintain affirmative action programs specifically for veterans and individuals with disabilities under the Vietnam Era Veterans Readjustment Assistance Act (VEVRA) and Section 503 of the Rehabilitation Act of 1973. These requirements apply to employers with 50 or more employees and federal contracts of specific amounts, as outlined below.
Affirmative Action for Veterans (VEVRAA)
Contractors with 50 or more employees and federal contracts of $150,000 or more must develop a veteran-focused affirmative action program (AAP) within 120 days of contract start. The requirements include setting an annual hiring benchmark (or adopting the US national benchmark), inviting applicants and employees to self-identify, and listing jobs with state Employment Service Delivery Systems. Managers must be trained on veteran categories, outreach, job listing compliance, and self-identification process best practices.
Affirmative Action for Individuals with Disabilities (Section 503)
Contractors with 50 or more employees and federal contracts of $50,000 or more must set utilization goals for people with disabilities (usually based on nationwide goals) and invite voluntary self-identification by employees. They must provide training on disability accommodations, self-ID confidentiality, and inclusive hiring and employment best practices.
Key Changes and Recent Updates
In January 2025, Executive Order 11246 was revoked, removing the requirement for affirmative action plans related to race and gender. This means federal contractors are no longer obligated to maintain affirmative action programs or conduct annual statistical analyses for women and minorities.
On July 1, 2025, the Department of Labor (DOL) published proposed rules that would revise Section 503 regulations for people with disabilities. Contractors would still be required to maintain affirmative action plans for individuals with disabilities but would no longer need to invite applicants and employees to self-identify or conduct annual workforce audits to measure disability representation, reducing regulatory burden.
Federal contractors have been requested by the Office of Federal Contract Compliance Programs (OFCCP) to voluntarily report on how they are winding down affirmative action plans in response to President Trump's Executive Order 14173, which aims to end race- or sex-based hiring and DEI programs.
Summary of Affirmative Action Requirements and Changes
| Aspect | Pre-Jan 2025 Requirement | Post-Jan 2025 Requirement | Proposed Changes (July 2025) | |-------------------------------|----------------------------------------------|----------------------------------------------|--------------------------------------------------------------| | Affirmative action for race/gender | Mandatory affirmative action plans, job audits, posting EEO notices (under EO 11246) | Eliminated due to revocation of EO 11246 | Proposed permanent removal of regulations related to race/gender AAPs[3] | | Affirmative action for veterans (VEVRAA) | AAPs required for contractors with 50+ employees & $150k+ contracts; self-ID & benchmarks | Continues unchanged; still required to develop AAPs and conduct training | No significant change proposed in veteran-focused AAPs[1] | | Affirmative action for people with disabilities (Section 503) | AAPs required at 50+ employees & $50k+ contracts; self-ID & workforce utilization audits | Continues with AAP requirement, self-ID & audits still required | Proposed rule to remove self-ID invitations and workforce audits[3] |
In essence, affirmative action remains legally mandated for veterans and people with disabilities among federal contractors, with recent regulatory changes easing burdens specifically on disability-related programs. Race and gender-based affirmative action requirements have been eliminated as of January 2025. Contractors and subcontractors should review their programs in light of these proposed rules and changes in the administration's policy. Comments for both proposed rules are due on September 2nd, 2025. The proposed rules do not affect the general applicability of affirmative action requirements for government contractors.
- The federal workforce reimagined under the new regulations now primarily focuses on affirmative action for veterans and individuals with disabilities, as race and gender-based affirmative action requirements have been eliminated.
- For employers with 50 or more employees and federal contracts of specified amounts, workforce restructuring may be required in accordance with the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act of 1973, including setting hiring benchmarks, providing training, and inviting self-identification.
- The finance and business sectors would be affected as the Department of Labor proposes to revise Section 503 regulations for people with disabilities, potentially reducing regulatory burden by removing the need for self-identification and annual workforce audits.
