President Obama "is committed to securing equal rights" for gays and lesbians, but he won't issue an executive order barring federal contractors from discrimination on the basis of sexual orientation.
"The approach we're taking at this time is to try to build support for passage of this legislation, a comprehensive approach to legislate on the issue of nondiscrimination," White House spokesman Jay Carney said.
The President is going to keep working on the Employment Non-Discrimination Act (ENDA) instead, reported the Boston Herald.
Gay rights leaders were not happy with the "compromise" and are getting impatient with the President.
"White House staffers and lawyers have let politics stand in the way of a basic American value - that a solid day's work deserves a solid day's pay, regardless of the color of your skin, your place of worship, your gender, or who you love," said Tico Almeia, president of Freedom to Work.