For much of 2025 and early 2026, federal contractors have watched the Office of Federal Contract Compliance Programs (OFCCP) become unusually quiet. Compliance reviews stopped. Enforcement activity nearly disappeared. The contractor portal was shut down, and the agency’s future was publicly questioned.
That is why the most recent appropriations news is significant: OFCCP has now been allocated approximately $100 million in federal funding through September 2026, an amount comparable to prior years.
For federal contractors, the question is no longer “Will OFCCP exist?” but rather:
What will OFCCP do with its funding — and what liabilities will contractors face in 2026?
Funding is Back, but OFCCP’s Mission has Changed
The OFCCP’s historic enforcement engine was built around Executive Order 11246 (race and sex affirmative action). However, recent policy shifts have dramatically altered that framework.
As described in the latest analysis, the administration has:
- Rescinded Executive Order 11246 (removing OFCCP’s primary enforcement mission)
- Closed open compliance reviews and largely paused enforcement
- Shut down the Contractor Portal certification process
- Reduced staffing and proposed shifting OFCCP’s remaining authorities elsewhere
And yet — OFCCP has still been funded at near-normal levels.
That funding creates a realistic possibility that OFCCP will return in 2026 with a narrower but still powerful enforcement focus, especially around laws that remain fully in effect.
What OFCCP Can Still Enforce in 2026
Even after the rescission of EO 11246, federal contractor obligations did not disappear.
OFCCP remains responsible for enforcing:
1) Section 503 (Disability Affirmative Action)
Contractors must still:
- Maintain an annual AAP for individuals with disabilities
- Solicit voluntary self-identification (pre- and post-offer)
- Track applicant and hiring metrics
- Engage in and evaluate disability recruitment efforts
2) VEVRAA (Protected Veterans Affirmative Action)
Contractors must still:
- Maintain an annual veterans AAP
- Solicit protected veteran self-ID
- List job openings with state employment services (with limited exceptions)
- Track outreach efforts and measure effectiveness
3) Complaint Investigations
Even during enforcement slowdowns, OFCCP has remained active in complaint-driven investigations, particularly under Section 503 and VEVRAA.
The Most Likely Enforcement Outlook for 2026
Because OFCCP has funding but reduced infrastructure, the most likely enforcement model for 2026 is:
A “lean OFCCP” focused on high-impact cases
Instead of broad compliance review scheduling lists, contractors should expect:
1) Complaint-based investigations
- Individual complaints (especially disability accommodation and veteran issues)
- Retaliation claims
- Hiring discrimination allegations
2) Data-driven targeting
Even if OFCCP does not restart full audits immediately, the federal government is increasingly operating under a “whole-of-government” enforcement model, where multiple agencies coordinate.
3) Coordination with DOJ, EEOC, and whistleblower channels
Contractors should assume that OFCCP, EEOC, and DOJ enforcement may overlap, especially when certifications and contract compliance language create legal exposure.
4) A shift away from “AAP technical violations” and toward outcomes
OFCCP historically penalized technical compliance failures (missing logs, missing statements, missing outreach documentation). That risk still exists, but the bigger threat now is liability based on alleged discriminatory outcomes or “proxy” discrimination theories.
The New Wild Card: EEO-1 Reports Are About to Become Public
One of the most significant developments for 2026 is not OFCCP itself , it is transparency.
A federal court process is now moving forward to compel the Department of Labor to release federal contractors’ EEO-1 reports under FOIA, following a Ninth Circuit ruling.
Under the proposed timeline:
- February 11, 2026: DOL releases bellwether contractor EEO-1 data
- February 25, 2026: DOL releases non-bellwether contractor EEO-1 data
This matters because EEO-1 data provides workforce demographic composition by job category, and once public, it can be used by:
- Plaintiffs’ attorneys
- Advocacy groups
- Competitors
- Media
- Whistleblowers
- Federal agencies
In other words: even if OFCCP enforcement stays limited, the litigation environment may intensify.
Part 1 Takeaway
OFCCP may not return to the same enforcement model contractors remember from the EO 11246 era. But federal contractor compliance is not optional, and in 2026, risk may come from places contractors do not expect: FOIA disclosure, whistleblowers, DOJ enforcement, and overlapping agency investigations.
In Part 2, we’ll cover exactly what contractors should do now to prepare, including best practices, liabilities to expect, and how to avoid high-risk mistakes.
Our EO 14173 Contractor Compliance Checklist provides a comprehensive framework to help you adapt your affirmative action and DEI efforts while staying compliant with evolving federal requirements. Take control of your compliance strategy. Missteps can lead to audits, contract loss, or False Claims Act exposure.