Trump Proposes Eliminating OFCCP in 2026 Budget

The U.S. Department of Labor’s FY 2026 budget proposal includes plans to eliminate the Office of Federal Contract Compliance Programs (OFCCP), with remaining enforcement responsibilities for veteran and disability protections proposed for transfer to the Veterans’ Employment and Training Service (VETS) and the Equal Employment Opportunity Commission (EEOC), respectively.

As per the National Law Review report, the proposal follows a January 2025 executive order revoking EO 11246, which previously governed nondiscrimination and affirmative action requirements for federal contractors. As a result, OFCCP’s scope of authority has been narrowed, with pending evaluations under Section 503 and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) placed on hold. Budget adjustments reflect this shift, with no FY 2026 funding requested for OFCCP and increased support proposed for VETS.

The EEOC, in its own justification, indicated preparedness to assume oversight of Section 503 enforcement while requesting a reduced overall budget compared to FY 2025.

Separately, the Department of Labor has launched a new opinion letter program as of June 2, 2025, aiming to offer formal interpretations of federal labor laws. The initiative, spanning five enforcement agencies—including the Occupational Safety and Health Administration (OSHA), the Employee Benefits Security Administration (EBSA), VETS, the Mine Safety and Health Administration (MSHA), and the Wage and Hour Division—is designed to provide public access to written guidance on regulatory questions. These letters may be requested by individuals or organizations and are published online.

The proposed changes to OFCCP and the launch of the opinion letter program reflect broader administrative shifts in labor policy and enforcement. Contractors and employers remain subject to applicable federal, state, and local nondiscrimination obligations, as well as updated compliance requirements under recent executive directives.
 

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