A contract clause has been deleted from federal regulations that prohibits establishments doing business with the government from having segregated waiting rooms, drinking fountains or transportation.

In February 2025, an audacious and controversial decision emerged from the Trump administration: the removal of a key clause from the Federal Acquisition Regulation (FAR 52.222-21) that had long prohibited federal contractors from maintaining segregated facilities.

DEI order prompted a regulatory change that means government contracts no longer need to include a prohibition on segregation.