EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON , D. C.

20503

THE DIRECTOR

September 28, 2020
M-20-37
MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

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FROM:

Russell T. Vought ( \
Duector
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SUBJECT:

Ending Employee Trainings that Use Divisive Propaganda to Undermine the
Principle of Fair and Equal Treatment for All

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On September 4, 2020, M-20-34 was issued at the President's direction, which states in
part, "The President, and his Administration, are fully committed to the fair and equal treatment
of all individuals in the United States."
M-20-34 alerted agencies that some Federal worker "training" sessions are being held­
at taxpayer expense - that demonstrably undermine this core American principle by stereotyping
and scapegoating specific groups of people. These divisive trainings constitute a malign subset
of a larger pool of Federal agency trainings held to promote diversity and inclusiveness. The sort
of training at issue does neither; it sows division among the workforce by attempting to prescribe
and impose upon employees a conformity of belief in ideologies that label entire groups of
Americans as inherently racist or evil (e.g., critical race theory).
On September 22, 2020, the President issued an Executive Order on Combating Race and
Sex Stereotyping. The Executive Order encourages diversity and inclusion efforts consistent
with principles of fair and equal treatment, and it defines the sort of divisive trainings the
Administration seeks to end.
The President and the Administration believe the fair and equal treatment of individuals
is an inviolable principle that must be maintained in the Federal workplace. Agencies should
continue all training that will foster a workplace that is respectful of all employees. As stated
previously in M-20-34, the Federal government is proud that as an employer we have employees
of all races, ethniticies, and religions. Our commitment and efforts to welcome all individuals
who seek to serve the American people remains, and our commitment to the fair and equal
treatment of Federal employees is enduring. Taking the steps described in this memorandum
will help ensure that all Federal workers are treated with the individual respect they deserve and
that the Federal government continues to foster a workplace of respect for all. Agencies should
take immediate and substantive action to begin this implementation, and complete
implementation within the time frame required by the E.O.

 Agency employees and contractors are not to engage in divisive training of Federal
workers. Noncompliance by continuing with prohibited training will result in consequences,
which may include adverse action for Federal employees who violate the Order.
Federal contractors are to be required to represent that they will not conduct such
trainings for their own employees, with potential sanctions for noncompliance. Agencies are to
review their grant programs and identify programs for which the agency may, as a condition of
receiving such a grant, require the recipient to certify that it will not use Federal funds to
promote the divisive concepts set forth in the E.O.
With respect to spending transparency, the EO states that, "Within 90 days of the date of
this order, each agency shall report to 0MB all spending in Fiscal Year 2020 on Federal
employee training programs relating to diversity or inclusion, whether conducted internally or by
contractors. Such report shall, in addition to providing aggregate totals, delineate awards to each
individual contractor."
In furtherance of the Executive Order on Combating Race and Sex Stereotyping and M20-34, agencies must:
Identify all agency training programs related to diversity and inclusion held during Fiscal
Year 2020, including both those conducted by the agency' s own employees and those
conducted by others (e.g., outside vendors). Determine the spending on each such
session, and the aggregate spending on all such sessions. The data should be presented so
that all awards to an individual contractor are viewable together. Since these trainings and
the dollars spent on them may be difficult to track or identify, it is recommended that
agency leadership consult with the heads of component offices that offer such trainings to
obtain their assistance in identifying them and determining the sums obligated.
Review these trainings to determine whether they teach, advocate, or promote the
divisive concepts specified in the Executive Order on Combating Race and Sex
Stereotyping (e.g. , that the United States is fundamentally racist or sexist or that an
individual, by virtue of his or her race or sex, is inherently racist, sexist, or oppressive).
Reviews of specific training curriculum materials can be supplemented by a broader
keyword search of agency financial data and procurements for terms including, but not
limited to: "critical race theory," "white privilege," "intersectionality," "systemic
racism," "positionality," "racial humility," and "unconscious bias." When used in the
context of diversity training, these terms may help to identify the type of training
prohibited by the E.O. Searching for these key words without additional review does not
satisfy the review requirements of the E.O.
To prevent prohibited trainings going forward, except for those contracts specifically
exempted by the E.O. (see Section 4 and FAR Subpart 22.807), every government contract must
include the provisions required by Section 4 of the E.O.
Where diversity and inclusion training is to be provided to Federal employees by
contractors, the following steps must be taken:

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 Agencies must ensure that requirements are scoped consistent with the E.O. Existing
contracts should be reviewed to ensure that training is consistent with this E.O. and any
work identified as inconsistent is immediately removed, if necessary and permissible
through a partial termination for convenience of the government.
For future awards, agency solicitations or statements of work concerning Federal
employee training shall include the provisions set forth in Section 4 of the E.O.
Contractors who are found to have provided a training for agency employees that teaches,
advocates, or promotes the divisive concepts specified in the E.O. in violation of the applicable
contract will be considered for suspension and debarment procedures consistent with the E.O.
and in accordance with the procedures set forth in Part 9 of the Federal Acquisition Regulation.
For Federal financial assistance, as required by Section 5 of the E.O., Federal awarding
agencies are required to identify all programs for which the agency may, as a condition of
receiving Federal grants and cooperative agreements, require the recipient to certify that it will
not use Federal funds to promote the concepts listed in Section 5 of the E.O. Additionally,
although training and education for employee development may otherwise be an allowable cost
under 2 CFR 200.472, training or education on the divisive concepts specified in the Executive
Order is not an allowable cost unless otherwise provided by law.
As Federal awarding agencies are conducting their review of programs to identify those
for which the agency may lawfully impose the condition described in Section 5 of the E.O., they
must look at all Federal ·grant and cooperative agreement programs, not just those for the
purposes of providing training. For those programs so identified, Federal awarding agencies
must update their guidance, practices, and procedures to ensure that future notice of funding
opportunities and the terms and conditions of Federal awards restrict the use of Federal funds,
including funds to meet cost share requirements, from being used to promote the divisive
concepts set forth in the E.O. (including by conducting research premised upon these concepts),
to the extent consistent with the statute(s) governing the grant program and all other applicable
law.
By November 20, 2020, Federal awarding agencies are required to report to 0MB,
through their RMO, those programs for which the agency may impose the conditions identified
in Section 5 of the E.O.
The agency head shall designate at least one senior political appointee to review and
approve in advance any expenditure on Federal employee diversity and inclusion training (via
contract or SF-182), and the senior polit~cal appointee shall do so only after certifying that the
curriculum meets the standard of fair and equal treatment of individuals.
Pursuant to Section 7 of the E.O. all training programs for agency employees relating to
diversity or inclusion must be reviewed by the Office of Personnel Management (OPM) for
compliance with the E.O. prior to the training program being used. OPM will issue guidance to
agencies on the process for submitting training programs for review and the approval process.

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 Finally, agencies should take all appropriate actions to align their public-facing
information with the requirements for training Federal employees outlined in the E.O. Agencies
should encourage their employees to report to the agency Inspector General (IG) any agency­
sponsored training session that violates the standard of fair and equal treatment of individuals set
forth in the E.O. , to support the IG reviews described in Section 6(c)(ii) of the E.O.

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