OFCCP Receives FY 2026 Funding: What Federal Contractors Should Expect

The Office of Federal Contract Compliance Programs (OFCCP) has officially received funding for Fiscal Year 2026. While recent regulatory changes have eliminated the requirement for race- and gender-based affirmative action plans, this funding confirms that OFCCP oversight and enforcement activity will continue without interruption.

In 2026, OFCCP’s enforcement efforts are expected to focus primarily on compliance with Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). Federal contractors that meet the applicable thresholds under Section 503 and VEVRAA should anticipate continued compliance evaluations, audits, and investigations throughout the year.

To prepare for ongoing and potentially increased OFCCP activity, federal contractors should:

  • Maintain fully prepared affirmative action plans, compensation analyses, and adverse impact analyses aligned with Section 503 and VEVRAA requirements
  • Ensure all compliance documentation is accurate, complete, and readily retrievable in anticipation of OFCCP interactions
  • Anticipate continued scrutiny related to pay equity and non-discrimination practices

Although race- and gender-based affirmative action plans are no longer formally required or enforced by OFCCP, Lighthouse continues to advise that a Merit-Based Opportunity Profile remains an essential compliance tool. This profile supports proactive monitoring of employment practices and alignment with longstanding federal laws, including Title VII of the Civil Rights Act of 1964 and the Equal Pay Act of 1963.

We will continue to monitor OFCCP activity and provide guidance as additional information becomes available. If you have questions about your current compliance posture or would like to review your 2026 preparedness, please contact Greta Gay at ggay@lightbeacon.com or 501-658-8883 (direct) to discuss next steps.