Recently, my colleague Tracey O’Brien and I examined the implications of the federal government’s intention to shut down the Office of Federal Contract Compliance Programs (OFCCP). OFCCP has already proposed to prohibit data collection by federal contractors of disability status from employees and applicants. In a Notice of Proposed Renewal of Information Collections released by the OFCCP on January 7, 2026, the agency appears to indicate that existing data collection requirements under VEVRAA might also be discontinued. As a result, federal contractors may lose their ability to evaluate how effectively they are reaching out to and recruiting individuals with disabilities and veterans, as well as how well they are meeting their obligations under Section 503.
With the government planning to scale back its enforcement of Section 503 and VEVRAA, both federal contractors and subcontractors will face reduced affirmative action compliance responsibilities. Consequently, any discrimination allegations they encounter are likely to be brought by private parties. Given these developments, it is advisable for contractors and subcontractors to review their current policies and take proactive measures to mitigate potential private discrimination claims.