Manufacturers that are covered federal contractors may be wondering when they are required to certify compliance with the affirmative action plan regulations. At this point, the answer is not clear and recent proposals from the Trump administration may explain why.

The Department of Labor’s (DOL) recently proposed budget for the fiscal year 2026 proposes to eliminate the Office of Federal Contract Compliance Programs (OFCCP), the agency tasked with enforcing affirmative action plans and proposes to transfer the OFCCP’s statutory program areas to other agencies. While the Trump administration rolled back many diversity, equity, and inclusion efforts, including revoking Executive Order 11246, which mandated affirmative action plans covering women and minorities, the statutory affirmative action requirements under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act of 1973 remain in effect. Under VEVRAA and Section 503, federal contractors are obligated to engage in affirmative action and maintain affirmative action plans for protected individuals with disabilities and protected veterans.

The DOL’s proposal includes having the Veterans’ Employment and Training Services enforce VEVRAA, and the EEOC enforce Section 503, rather than the OFCCP enforcing these regulations. The justification is that “the realignment of responsibilities will ensure consistent oversight while shrinking the Federal bureaucracy” and that Executive Order 14173: “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” “permanently remov[es] the primary basis for the OFCCP’s enforcement authority and program work.” If approved, the OFCCP would be eliminated next fiscal year, beginning October 1, 2025.

At this juncture, Congress must still approve the proposed budget, and there is a question as to whether the OFCCP can even be required to transfer its authority to other agencies.

What does this mean for federal contractors who must comply with VEVRAA and Section 503 affirmative action requirements? Employers are still statutorily required to engage in affirmative action efforts and maintain affirmative action plans regarding protected veterans and individuals with disabilities. While the future is unclear for the OFCCP, the statutory requirements still remain in effect and remain a legal obligation.

This post was co-authored by Labor + Employment Group lawyer Jessica C. Pinto.