Federal Register executive orders — 2026-05-05

Promoting Efficiency, Accountability, and Performance in Federal Contracting

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:

Section 1 . Purpose . The American people expect their Government to operate with integrity, efficiency, and transparency. For too long, Federal procurement has tolerated unpredictable costs, bloated overhead, and weak performance incentives. The United States Government must adopt the best business practices to protect taxpayer dollars, hold contractors accountable, and achieve demonstrable returns on investment.

Many private-sector contracts focus on driving performance rather than ever-increasing costs, often dictating a fixed cost for a well-defined outcome. Fixed-price contracts are characterized by clearly defined outcomes and deliverables on predictable timelines for fixed prices that generally are not adjusted based on contractors' costs, and often tie profit to the contractors' performance, rewarding work that exceeds expectations and penalizing subpar performance. This performance-based model encourages contractors to control costs and expeditiously meet deliverables to maximize profits. Many Government contracts, however, operate on what is known as a “cost-reimbursement” model. Under that model, Government contractors are guaranteed reimbursement for their allowable incurred costs, and may receive profit margins on top of expenses. Cost-reimbursement contracts frequently allow for poorly defined product or service deliverables and increase the Government's exposure to overspending by providing little incentive to control costs.

A review of spending across the Government in Fiscal Year 2024 identified approximately $120 billion obligated on cost-reimbursement consulting contracts alone. While there are circumstances in which cost-reimbursement contracting is appropriate, such as research and the pre-production developmental phase of major systems acquisition, it should be the exception, granted only in limited circumstances and with appropriate senior-level accountability at the agency.

To ensure that Government contracts incentivize performance rather than cost inflation, it is the policy of my Administration that fixed-price contracts with performance-based considerations should serve as the default and preferred method of procurement in order to advance cost predictability and budget discipline, appropriate contractor incentives and accountability, and streamlined procurement and contract administration.

Sec. 2 . Default to Fixed-Price Contracting . (a) To the maximum extent consistent with law, and except as provided in subsection (b) of this section, executive branch departments and agencies (agencies) shall, in procurement, utilize fixed-price contracts, which for purposes of this order shall mean fixed-price contracts as defined in Part 16 of the Federal Acquisition Regulation, codified at title 48, Code of Federal Regulations, or contracts that tie profit to performance-based metrics when appropriate.

(b)(i) Use of any non-fixed-price contract, including a cost-reimbursement contract, a time-and-material contract, a labor-hour contract, or any other non-fixed-price type of contract under Part 16 of the Federal Acquisition Regulation, must be justified in writing by the contracting officer to the agency head.

(ii) If the value of a non-fixed-price contract, or in the case of a hybrid contract, the value of the non-fixed-price portion of the contract, exceeds the following value, then the agency head must approve the contract in writing:

(A) $100 million, in the case of a Department of War contract;

(B) $35 million, in the case of a National Aeronautics and Space Administration contract;

(C) $25 million, in the case of a Department of Homeland Security contract; or

(D) $10 million, in the case of a contract involving an agency other than the Department of War, the Department of Homeland Security, or the National Aeronautics and Space Administration.

(iii) Agency heads may delegate approval under subsection (b)(ii) of this section to appropriate non-career employees within the agency.

(iv) Subsection (b)(ii) of this section shall not apply to contracts that:

(A) support response to an emergency, major disaster, or contingency operation as defined in Part 2 of the Federal Acquisition Regulation; or

(B) involve research and development or pre-production development for major systems acquisition, as governed by Parts 34-35 of the Federal Acquisition Regulation.

(c)(i) Within 90 days of the date of this order, each agency head shall review and, to the maximum extent practicable and consistent with law, seek to modify, restructure, or renegotiate its 10 largest non-fixed-price contracts by dollar value (including non-fixed-price contracts entered into on behalf of another agency) to facilitate use of fixed prices and performance-based incentives for contract deliverables to the maximum extent practicable.

(ii) Subsection (c)(i) of this section shall not apply to contracts that involve research and development or pre-production development for major systems acquisition, as governed by Parts 34-35 of the Federal Acquisition Regulation, or contracts that support response to an emergency, major disaster, or contingency operation as defined in Part 2 of the Federal Acquisition Regulation.

(d) Each agency head shall report semi-annually to the Director of the Office of Management and Budget (OMB) the number of, value of, and written justifications for, any non-fixed-price contracts approved under subsection (b) of this section. Agency heads shall submit the first report no later than 90 days after the date of this order. As part of the first report, agency heads shall identify opportunities, beyond the contracts identified in subsection (c) of this section, for adjusting current non-fixed-price contracts toward fixed-price contracts.

(e) The requirements in this section apply, to the maximum extent practicable, whether an agency is entering into contracts on its own behalf or on behalf of another agency.

(f) When necessary to comply with the provisions of this section before the amendments contemplated by section 3(b) of this order are completed, agencies shall utilize applicable deviations from provisions of the Federal Acquisition Regulation, to the maximum extent practicable.

Sec. 3 . Implementation . (a) Within 45 days of the date of this order, the Director of OMB shall issue guidance to agencies to ensure consistent implementation of this order.

(b) Within 120 days of the date of this order, the Administrator for Federal Procurement Policy shall:

(i) propose, in coordination with the Federal Acquisition Regulatory Council, amendments to the Federal Acquisition Regulation, consistent with the policy in section 1 of this order; and

(ii) develop, in coordination with Defense Acquisition University and the Federal Acquisition Institute, a program that agencies shall use to train program and contracting employees on the formation, use, negotiation, and management of fixed-price contracts to minimize exceptions from section 2(a) of this order.

Sec. 4 . Severability . If any provision of this order, or the application of any provision to any person or circumstance, is held to be invalid, the remainder of this order and the application of its provisions to any other persons or circumstances shall not be affected thereby.

Sec. 5 . General Provisions . (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

(d) The costs for publication of this order shall be borne by the Office of Management and Budget.

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Promoting Retirement-Savings Access for American Workers by Establishing TrumpIRA.gov

By the authority vested in me as President by the Constitution and the laws of the United States of America, and to ensure that every American worker has access to a simple, portable, low-cost retirement-savings option, it is hereby ordered:

Section 1 . Policy . Tens of millions of Americans lack access to employer-sponsored retirement plans. Workers in small businesses, part-time workers, independent contractors, and self-employed workers face unnecessary barriers to saving for retirement. My Administration intends to give these often-left-out American workers access to the same type of retirement-savings opportunities offered to every Federal worker and to establish an easy and transparent way for eligible workers to obtain up to a $1,000 match for their savings. Hard-working Americans deserve retirement security in portable savings vehicles that offer access to low-cost investments similar to those offered to Federal workers in the Thrift Savings Plan.

It is the policy of the United States to promote high-quality, low-cost individual retirement accounts (IRAs) offered by private-sector financial institutions that meet objective standards of cost, transparency, and fiduciary responsibility.

It is further the policy of the United States to increase public awareness of the Federal Saver's Match enacted in the bipartisan SECURE 2.0 Act (Public Law 117-328, Division T) and to facilitate participation in eligible retirement-savings vehicles that provide diversified, index-based investment options.

Through a federally administered retirement-savings informational platform that highlights qualifying high-quality, low-cost, private-sector IRAs, the United States will promote retirement-savings participation, provide access to retirement-savings options similar to those enjoyed by Federal employees, and encourage workers to reap the rewards of the vibrant American private-sector along with the power of compound earnings.

Sec. 2 . Establishment of TrumpIRA.gov . (a) The Secretary of the Treasury shall, by January 1, 2027, establish a website (TrumpIRA.gov) that provides individuals, with a particular focus on independent contractors, self-employed individuals, and other workers who do not have access to an employer-sponsored retirement plan, with information about high-quality, low-cost IRAs. Individuals who contribute to qualifying IRAs, and who are otherwise eligible, are entitled to a Federal Saver's Match contribution of up to $1,000 pursuant to 26 U.S.C. 6433.

(b) TrumpIRA.gov shall list financial institutions that offer IRAs under 26 U.S.C. 408, accept the Federal Saver's Match contribution under 26 U.S.C. 6433(e)(2)(C), and meet other criteria, as directed by the Secretary of the Treasury, consistent with applicable law. In addition, TrumpIRA.gov shall explain the cost and quality criteria described in subsection (c) of this section, allow individuals to filter and select IRAs based on their cost and quality, and provide information regarding the opportunity to receive the Federal Saver's Match contribution under 26 U.S.C. 6433, consistent with applicable law.

(c) TrumpIRA.gov shall identify financial institutions that offer IRAs that:

(i) provide a menu of investment options that meet stated criteria including:

(A) investment fund products or model portfolios, including life-cycle or targeted-retirement-date options as described in 29 CFR 2550.404c-5(e)(4)(i), or balanced funds as described in 29 CFR 2550.404c-5(e)(4)(ii); or

(B) funds that are designed to protect principal on an ongoing basis, as described in 29 CFR 2550.404c-5(e)(4)(iv);

(ii) maintain low administrative costs, with overall net-expense ratios, inclusive of operating costs, management fees, and administrative expenses, limited to .15 percent; and

(iii) do not impose minimum-contribution or balance requirements.

(d) In accordance with section 104(a) of the SECURE 2.0 Act, TrumpIRA.gov shall be designed to increase public awareness of the opportunity for eligible individuals to make contributions to retirement-savings vehicles and receive the Federal Saver's Match contribution; facilitate low-cost, safe, and informed retirement-savings decisions; and increase retirement saving.

Sec. 3 . Federal Saver's Match Implementation . (a) The Secretary of the Treasury shall take all necessary steps, as appropriate and consistent with applicable law, to ensure that qualifying individuals who contribute to IRAs, including those who open IRAs listed on TrumpIRA.gov and otherwise satisfy all applicable requirements, receive the Federal Saver's Match contribution.

(b) The Secretary of the Treasury shall take all necessary steps, as appropriate and consistent with applicable law, to encourage financial institutions to accept the Federal Saver's Match contributions in accordance with rules established by the Secretary.

Sec. 4 . Charitable Contributions . The Secretary of the Treasury and the Commissioner of the Internal Revenue Service shall, as appropriate and consistent with applicable law, provide guidance with respect to the tax treatment of contributions made by tax-exempt organizations to IRAs maintained by workers who are members of a charitable class entitled to receive the contribution without jeopardizing the organizations' tax-exempt status.

Sec. 5 . Worker Protection . The Secretary of the Treasury and the Secretary of Labor shall issue regulations, exemptions, or guidance, as appropriate and consistent with applicable law, to ensure that IRAs maintained by financial institutions, including those listed on TrumpIRA.gov, protect workers, maintain transparency, and prevent prohibited transactions within the meaning of 26 U.S.C. 4975.

Sec. 6 . Legislative Recommendations . The Secretary of the Treasury, in consultation with the Assistant to the President for Economic Policy, shall prepare legislative recommendations to codify the policy set forth in this order so that workers lacking access to employer-provided retirement plans, including workers in small businesses, part-time workers, independent contractors, and self-employed workers, have access to a retirement option with low fees, eligibility for the Federal Saver's Match or other matching contributions, diversified index-based investment options, automatic portfolio choices, and portability.

Sec. 7 . Severability . If any provision of this order, or the application of any provision to any individual or circumstance, is held to be invalid, the remainder of this order and the application of its other provisions to any other individuals or circumstances shall not be affected thereby.

Sec. 8 . General Provisions . (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

(d) The costs for publication of this order shall be borne by the Department of the Treasury.

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