Executive Order 13940, signed on August 3, 2020, sought to redirect federal hiring and contracting toward American workers and domestic firms. The order directed federal agencies to modify their hiring guidelines for federal positions and revise contracting evaluation criteria to prioritize domestic workforce considerations. These changes applied immediately to the remainder of the 2020 fiscal year, affecting how federal agencies advertised positions, evaluated applications, and selected contractors for government work.
The order's direct effects reached federal employees and job applicants competing for government positions, as well as American contractors bidding on federal projects. Federal agencies revised their hiring criteria to emphasize American citizenship and domestic experience, potentially affecting visa-dependent hiring in specialized fields. Contractors—particularly small and medium-sized American firms—faced altered evaluation standards designed to advantage domestic businesses over foreign-owned or internationally-sourced competitors in the federal procurement process.
This action represented part of a broader Trump administration approach to economic nationalism that continued across multiple administrations. The executive order preceded subsequent policies emphasizing American manufacturing, from the 2026 orders on Made in America advertising standards to the ongoing suspension of duty-free de minimis tariff treatment affecting all imported goods. The pattern reflects a consistent theme: restructuring federal policy mechanisms to prioritize domestic economic interests, whether through hiring practices, tariff enforcement, or procurement standards.
Executive Order 13940 was reversed during the subsequent administration, reflecting broader shifts in federal procurement and employment philosophy. The reversal restored previous hiring and contracting evaluation procedures that did not explicitly prioritize citizenship or domestic sourcing, returning agencies to standard competitive evaluation protocols that emphasized qualifications and value regardless of national origin.
Executive Order 13940: Federal Contracting and Hiring for American Workers
💰 Economy · First Term (2017–2021) · 🤖 AI-categorized
Executive Order 13940 was signed on August 3, 2020. The order directed federal agencies to prioritize hiring American workers and to modify federal contracting procedures to align with domestic workforce interests. The confirmed direct effect included revised hiring guidelines for federal positions and changes to contracting evaluation criteria at federal agencies during the remainder of the 2020 fiscal year.