# FAR Council Proposes Contractor Debarment for DEI Noncompliance

The Federal Acquisition Regulatory (FAR) Council proposed a rule on September 18, 2026, to formally designate noncompliance with the FAR Diversity, Equity, and Inclusion (DEI) clause (52.222-90) as grounds for contractor debarment and suspension governmentwide. This elevates enforcement from contract-specific remedies to potential exclusion from all federal contracting opportunities. The rule requires contractors to enhance compliance oversight, including monitoring subcontractors at all tiers, as the DEI clause flows down to subcontracts involving U.S. delivery or performance. Contractors face increased risks such as contract termination, governmentwide suspension or debarment, and False Claims Act liability if found noncompliant. Stakeholders should review and update DEI policies accordingly and consider submitting comments by the October 19, 2026 deadline.

- **Why this matters:** This rule signals heightened federal emphasis on DEI compliance as a critical procurement requirement, expanding contractor accountability beyond prime contracts to subcontractors.
- Contractors must implement robust monitoring and flow-down mechanisms to manage DEI obligations across their supply chains.
- Procurement professionals should anticipate stricter enforcement and potential exclusion risks tied to DEI compliance failures.
- Organizations can influence the final rule by submitting feedback before the October 19, 2026 comment deadline.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 23, 2026

### Government Entities
- Federal Acquisition Regulatory Council (FAR Council)

### Key Quotes
> Because the clause already flows down to subcontracts
nd prime contractors face heightened exposure for subcontractor noncompliance and placing importance on monitoring and flow-down administration.
> — Joseph E. Ashman, Shareholder

> The inclusion of 52.222-90 noncompliance alongside these causes continues to reflect the weight the administration is placing on the DEI clause.
> — Cameron W. Ellis, Of Counsel

### Sources
- [FAR Council Proposes to Embed Contractor Debarment and Suspension for Noncompliance With FAR DEI Clause - Ogletree](https://ogletree.com/insights-resources/blog-posts/far-council-proposes-to-embed-contractor-debarment-and-suspension-for-noncompliance-with-far-dei-clause) - Ogletree