On May 30, 2025, the EEOC and Department of Labor released their 2026 Congressional Budget Justifications, outlining priorities and structural changes.
Key Highlights:
Elimination of the OFCCP – Effective September 30, 2025, pending Congressional Budget Approval.
The DOL proposes to eliminate the Office of Federal Contract Compliance Programs (OFCCP) in FY 2026 following Executive Order 14173, which revoked EO 11246 (the foundation for affirmative action requirements for federal contractors).
- VEVRAA enforcement (veterans’ rights) will transfer to the Veterans Employment and Training Service.
- Section 503 (disability discrimination) is proposed to move to the EEOC, though this will require Congressional authorization and regulatory updates before EEOC can enforce it.
Employer Takeaways:
- Employers should prepare for more EEOC scrutiny of DEI policies that may be viewed as discriminatory under Title VII.
- Religious accommodation requests—especially related to COVID-19 or vaccine mandates—will remain under EEOC investigation.
- Whistleblowers are expected to play a key role in identifying systemic violations.
- Employers must ensure compliance by avoiding preference-based DEI practices and rigorously managing religious accommodation processes.