The proposed budgets are out for the fiscal year 2026 and it isn’t looking good for the Office of Federal Contract Compliance Programs (OFCCP). The budget plans of the U.S. Department of Labor’s (DOL) aim to fully eliminate the OFCCP beginning October 1, 2025.
This elimination is in line with recent Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, that rescinded requirements for affirmative action for federal contractors back in January 2025. OFCCP has been the governing agency for these requirements, and without that authority, its purpose has been significantly diminished.
OFCCP was also responsible for Section 503 of the Rehabilitation Act and the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA). Under the new proposed budget, Section 503 enforcement will go to the Equal Employment Opportunity Commission (EEOC) and VEVRAA enforcement will go to Veterans’ Employment and Training Service (VETS). According to the proposed budget, these changes will “ensure consistent oversight while shrinking the Federal bureaucracy.”
Compliance with Section 503 and VEVRAA is not going away. Don’t stop data collection for either of these important requirements and continue preparing your plans as you have been. OutSolve consultants are available to help with both of these requirements.
Continuing with the importance of data collection, EEO-1 Reports are required this year. With the deadline of June 24, 2025, there isn’t much time left to prepare and file these reports. Our experienced consultants can help take this requirement off your plate. Reach out today.
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