Decoding Executive Order 14168

by | Jun 16, 2025 | Grants, Resources

Decoding Executive Order 14168

What It Means for Nonprofits and How to Move Forward

In January 2025, two federal executive orders (EO) were issued that significantly affect how government agencies approach diversity, equity, and inclusion (DEI), as well as gender identity in federally funded programs:

  • Executive Order 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” directed federal agencies to eliminate DEI-related programs and offices. You can check out our recent blog for guidance on how nonprofits and grant writers can navigate EO 14151.

Executive Order 14168 redefines “sex” as biological male or female, limiting references to gender identity in federal grants and programs. This shift has major implications for nonprofits in health, education, housing, and advocacy.

  • Executive Order 14168, “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government,” redefined the term “sex” to refer exclusively to biological male or female and directed agencies to remove references to gender identity from policies and funding frameworks.

While EO 14151 addressed DEI efforts broadly, EO 14168 focuses specifically on sex-based definitions and how gender identity can be referenced—or not—in federally funded programs. This distinction is particularly relevant for nonprofits that provide health, education, housing, or advocacy services that reference or serve gender-diverse populations.

What matters most for nonprofits is this: EO 14168 changes how federal agencies define “sex,” restricts references to gender identity, and may impact funding and compliance for organizations whose work touches these areas.

Side-by-Side Comparison: Executive Orders 14151 vs. 14168

Feature EO 14151* EO 14168

Title

Ending Radical and Wasteful Government DEI Programs and Preferencing

Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government
Issue Date January 20, 2025 January 20, 2025
Primary Focus Eliminating DEI (Diversity, Equity, Inclusion) programs and initiatives Redefining sex as biological male/female and restricting federal recognition of gender identity
Scope

Applies to all federal agencies and programs

 Applies to all federal agencies and federally funded programs
Key Actions

– Eliminates agency DEI offices

– Prohibits DEI-related trainings

– Removes DEI-focused job postings and grant criteria

Defines “sex” based on biology at birth:

– (d) “Female” means a person belonging, at conception, to the sex that
produces the large reproductive cell.
– (e) “Male” means a person belonging, at conception, to the sex that
produces the small reproductive cell.”

– Prohibits terms like “gender identity” and “gender-affirming care” in policies

– Requires sex-separated programs based on biology
Impact on Nonprofits

– May affect grants requiring DEI components

– Changes language expectations in proposals

 – May affect gender-inclusive services and terminology
– Requires language adjustments in federal grant proposals and reports
Compliance Considerations

– Remove DEI requirements in federal-facing documents

– Reassess grant eligibility based on mission alignment

– Adjust program descriptions to avoid gender identity language

– Maintain dual messaging strategies (federal vs. community)

Whether you serve youth, offer health services, run education programs, or advocate for equity—this is something to be aware of.

What Nonprofits Should Know About EO 14168

Executive Order 14168 instructs federal agencies to strictly define “sex” as the biological sex assigned at birth, and limits the use of terms like “gender identity” or “gender-affirming care” in federal programming and documentation. This means:

  • Programs and services funded by federal grants may no longer explicitly use language that refers to gender identity.

     

  • Sex-segregated programs (such as shelters, health services, or sports programs) must be based on biological sex, not gender identity.

     

  • Educational materials and policies may need revisions to comply with these definitions.

Actionable Steps for Nonprofits

  • Review grant applications and agreements
    Check whether your federal grant applications or contracts require or reference gender identity terms, and prepare to update language accordingly.

     

  • Adjust program descriptions
    Ensure descriptions of your services and programs reflect the required biological definitions, while continuing to honor and serve all community members respectfully.

     

  • Maintain clear communication
    Develop dual messaging if necessary—use federally compliant language in formal documents and grant reports, while continuing inclusive language and support in community-facing communications.

     

  • Train staff and leadership
    Educate your team on these changes to ensure consistency in language and compliance across your organization.
  • Consult legal or compliance experts
    Especially for nonprofits with programs centered on LGBTQ+ services or gender identity, seek expert advice to navigate these complex rules.

Actionable Steps for Nonprofits

  • Sample Federal Grant Compliance Checklist

In Conclusion, Remember This

You are not alone in this. Many nonprofits are working through the same questions. The best path forward is informed, intentional, and values-driven. If you need help adjusting your language, reviewing your funding strategy, or explaining these changes to your board, staff, or supporters, or navigating compliance, Arula Consulting is here to support you.

Contact us for a free consultation.

Stay aligned. Stay fundable. Stay mission-driven.

 

* A Brief Note on EO 14151 and Earlier Equity Orders: EO 14151 rescinds or redirects previous equity-focused executive orders like EO 13985 and EO 14091, reflecting a shift in federal priorities. Understanding this helps nonprofits strategically navigate funding and program decisions in an evolving landscape.

This guide is provided as a resource for nonprofit professionals managing grants in 2025 and beyond. It is not a substitute for legal advice.