In a move the Agency reported is designed to maintain healthcare access for active and retired service members and their families, the Office of Federal Contract Compliance Programs (OFCCP) has announced a two-year extension to the enforcement moratorium for Veterans Affairs Health Benefits Program (VAHBP) providers. This extension, effective June 11, 2025, will now run through May 7, 2027.

The extended moratorium continues to suspend the enforcement of VAHBP providers’ requirement to take affirmative steps to ensure equal opportunity without regard to disability or protected veteran status, obligations typically required of federal contractors and subcontractors. Additionally, VAHBP providers will not be subject to neutral scheduling for compliance evaluations during this period – though all evaluations are currently being held in abeyance.

Presently, the OFCCP retains authority to investigate discrimination complaints filed under Section 503 of the Rehabilitation Act (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). However, given the current administration’s focus on deregulation and the recent proposed budget that would effectively eliminate the OFCCP, this moratorium extension likely reflects the need to address the previous May 2025 expiration date, rather than an indication that the agency is ramping up its activities.

This extension represents the latest in a series of actions dating back to 2014, when the OFCCP first limited its enforcement activities for TRICARE subcontractors in an effort to balance regulatory requirements and veterans’ access to healthcare, allowing for more time to consider stakeholder feedback. The moratorium was later expanded to include VAHBP providers. Effective August 31 2020, OFCCP’s final rule established that it does not have authority over TRICARE providers. The current moratorium extension provides additional time for the OFCCP to develop sub-regulatory guidance specifically addressing VAHBP providers.

While the extension offers some regulatory relief, VAHBP providers must remain aware that the moratorium does not exempt them from nondiscrimination obligations.

We will continue to monitor OFCCP developments and administrative activities for updates. If you have questions about this extension and how it may affect your organization, please contact a Jackson Lewis attorney for guidance.

Tags: OFCCP, Office of Federal Contract Compliance Programs, TRICARE, VAHBP Moritorium, veterans, Veterans Affairs Health Benefits Program (VAHBP) providers, VEVRAA
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Photo of Laura A. Mitchell Laura A. Mitchell

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with…

As co-leader of the firm’s ESG group, Laura Mitchell partners with her clients to evaluate, set, achieve and monitor their organizational culture and human capital goals. She focuses her practice on data analytics, including pay equity and other employee analytics, working side-by-side with employers to build programs that benefit employees and create a stable, high-functioning workplace. Understanding that an inclusive, values-based culture provides a crucial competitive advantage in the modern workplace, Laura enjoys counseling companies on the development of proactive and equitable pay and diversity practices.

In Laura’s version of the reimagined workplace, attention to human capital issues, especially DEI and pay equity, would be the rule rather than the exception nationwide and she works with companies across all industries—both new and well-established multi-national organizations of all sizes—to realize this vision for her clients’ ongoing success. She helps clients understand all issues across the spectrum of their journey, helping to establish regular analyses as well as counseling organizations on implementation and compliance obligations, where applicable. Committed to putting her clients’ organizational goals first and foremost, Laura views herself as an extension of her clients’ team, responsible for providing proactive guidance and engaging in transparent, ongoing communication.

Laura also represents companies in OFCCP matters, preparing for and defending OFCCP audits, and counseling employers on issues stemming from OFCCP regulations. She personally oversees the development of hundreds of Affirmative Action Plans for clients each year and is intimately involved in the defense of OFCCP audits. Her approach to compliance is one of facilitation and conciliation while simultaneously advocating in the best interests of her clients.

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