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Executive Order 13940Executive Order

Aligning Federal Contracting and Hiring Practices With the Interests of American Workers

Donald J. Trump
Signed: Aug 3, 2020
Published: Aug 6, 2020
Standard Summary
Comprehensive overview

This executive order aims to shift federal contracting and hiring practices to give preference to American workers. It directs agencies to review past federal contracts (specifically fiscal years 2018 and 2019) to determine whether temporary foreign labor was used or jobs were offshored, and to assess the impact on U.S. workers and national security. Agencies must evaluate any negative effects on procurement efficiency and propose corrective actions as appropriate. The order also requires an assessment of agency employment policies to ensure compliance with citizenship requirements for federal employment and related law. Within 120 days, agencies must report their findings and proposed actions to the Director of the Office of Management and Budget. Additionally, within 45 days, the Secretaries of Labor and Homeland Security must take action to protect U.S. workers from adverse effects tied to H-1B visa employment and ensure compliance with existing H-1B wage and labor protections. The order preserves existing authorities and does not create new rights. In short, the order creates a reporting and oversight framework to curb the use of temporary foreign labor and offshoring in federal contracting, while enhancing protections for U.S. workers related to H-1B placements and citizenship requirements in federal employment.

Key Points

  • 1Policy aim: Prioritize opportunities for United States workers in federal contracts and limit displacement caused by temporary foreign labor or offshoring.
  • 2Contracting reviews: Heads of executive agencies must review 2018–2019 contracts to determine use of temporary foreign labor and offshoring, the work performed, effects on U.S. job opportunities, and any national security implications.
  • 3Impact assessment and action: Agencies must assess negative effects on the economy, procurement efficiency, and national security, and propose corrective actions as appropriate.
  • 4Employment policy review: Agencies must review their employment policies for compliance with citizenship requirements for federal employment and related laws (including EO 11935 and the 2020 Consolidated Appropriations Act, section 704).
  • 5Reporting obligation: Within 120 days, agencies must submit a report to the Director of the Office of Management and Budget detailing findings, recommended actions, timeframes, and any proposed presidential actions.
  • 6Protections for U.S. workers regarding H-1B: Within 45 days, Labor and Homeland Security must take actions to shield U.S. workers from adverse effects of H-1B placements, including ensuring employers comply with the wage and labor protections in 8 U.S.C. 1182(n)(1) (INA).
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