Trump Rescinds SCA Nondisplacement Executive Order

---

Upon taking office on January 20, 2025, one of President Trump’s first acts was to sign an executive order that rescinded 78 of President Biden’s executive orders or actions. Many actions affected issues relating to the federal workforce or climate change, but one item also addressed the Service Contract Act.

Included in the list of 78 rescissions was Executive Order 14055, the Nondisplacement of Qualified Workers Under Service Contract. Biden’s EO 14055 reversed a Trump rescission of an EO implemented during the Obama Administration.

EO 14055 enabled employees working on predecessor contracts covered by the Service Contract Act and meeting other requirements, who would otherwise be terminated due to the contract’s end, to be offered by the successor “a right of first refusal of employment under this contract in positions for which those employees are qualified.”

The likely immediate impact is that the non-displacement clause will no longer be included in new solicitations or contracts. Further information is needed to understand the impact on existing contracts or option years.