President Donald Trump has signed a new executive order directing the Department of Commerce. This move, announced on September 11, 2025, is designed to reshape congressional redistricting and federal funding formulas. Many are saying it is in favor of Republican strongholds. For federal contractors, this order introduces new compliance risks, data integrity challenges, and potential shifts in funding eligibility.
What the Executive Order Says
According to TIME Magazine, Trump’s directive instructs the Commerce Department to begin work on a “highly accurate” census that excludes undocumented immigrants from the population count. The President stated on Truth Social, “People who are in our Country illegally WILL NOT BE COUNTED IN THE CENSUS.” This marks a reversal of President Biden’s earlier order, which reaffirmed the constitutional mandate to count all residents, regardless of legal status.
The U.S. Census Bureau has historically included all residents in its decennial count, as required by the 14th Amendment. Trump’s order challenges this precedent. It sets the stage for legal battles over the definition of “resident” in federal data collection.
Political Strategy Behind the Order
This executive action is part of a broader Republican strategy. It is to redraw congressional maps and secure additional seats in the House of Representatives. ABC News reports that Texas is at the center of this redistricting battle. Trump has argued that states like California and Texas are “gerrymandered” against Republican interests. The timing of the order coincides with mounting pressure on state legislatures to finalize redistricting plans ahead of the 2026 elections. Republican governors in several states are exploring legal avenues to redraw maps. On the side, Democratic governors in New York and California are considering countermeasures.
Implications for Federal Contractors
Contractors working with the Census Bureau, Department of Justice, and state agencies must now prepare for operational and legal shifts. Data analytics firms may be asked to revise population models, but legal service providers could face new compliance requirements. Grant administrators must reassess eligibility criteria for programs. Vendors involved in demographic research, community outreach, and digital infrastructure may need to adjust methodologies to align with the new directive.
Legal and Constitutional Challenges
The executive order is expected to face immediate legal scrutiny. The Supreme Court previously blocked Trump’s attempt to add a citizenship question to the 2020 census. The Supreme Court ruling said that it violated federal law. Civil rights groups and state attorneys general are likely to challenge the new order on similar grounds. Ballotpedia notes that Trump has issued over 200 executive orders in his second term. This latest directive could become a defining case in the ongoing debate over executive power and electoral fairness.
Strategic Takeaways for Vendors
Federal contractors must monitor updates from the Census Bureau and the Office of Management and Budget. They should get prepared for data model revisions, including legal compliance audits, and funding formula changes. Contractors should also engage with state agencies. This is because they need to understand the effect of local grant programs and service delivery.
