President Trump’s FY 2026 budget request proposes abolishing the Office of Federal Contract Compliance Programs. Under this proposal, OFCCP’s enforcement of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) would shift to the Labor Department’s Veterans’ Employment and Training Service (DOL-VETS), and OFCCP’s enforcement of Section 503 of the Rehabilitation Act would shift to the Equal Employment Opportunity Commission (EEOC).
The proposed budget requests $7 million in funding for DOL-VETS. It does not request any funding for the EEOC.
Congress often does not adopt requests for major agency reorganizations. For instance, it did not advance President Trump’s proposal in the FY 2018 budget request to merge the EEOC and OFCCP. However, the rescission of Executive Order 11246 may make Congress more receptive to the new proposal.
Regardless of the proposal’s outcome, federal contractors will have to continue developing and maintaining disability and veterans’ affirmative action programs and filing annual VETS-4212 reports.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.