Trump’s Executive Order Puts DEI Initiatives Under the Microscope

If your company has diversity, equity, and inclusion (DEI) initiatives, the new executive order from the White House signals a major shift. Businesses—especially federal contractors—should be prepared for increased scrutiny.

What’s in the Executive Order?

🔹 DEI Programs Under Review: The order directs federal agencies to work with the Attorney General to identify and deter “illegal discrimination and preferences,” including DEI.

🔹 Government Report Due by May 21, 2025: Agencies must submit a list of key sectors of concern, identify DEI practitioners for potential investigations, and outline possible litigation or regulatory action.

🔹 Nine Civil Compliance Investigations Expected: The order instructs agencies to pursue legal action against “egregious and discriminatory” DEI programs in the private sector.

🔹 Federal DEI Orders Revoked: The order immediately eliminates multiple Biden-era DEI executive orders that applied to government agencies, federal contractors, and subcontractors.

What This Means for Employers

While DEI remains legal, the scope of enforcement and compliance risks could change. With conservative legal groups pushing for action, companies should prepare for potential regulatory scrutiny, investigations, and lawsuits—especially if they are federal contractors.

What Should Employers Do Now?

✅ Review DEI Programs with Legal Counsel – Ensure policies comply with civil rights laws and don’t create legal risk.
✅ Focus on Inclusive Hiring Without Preferences – Encouraging diverse applicants remains best practice, but hiring decisions must avoid preferential treatment.
✅ Monitor Federal Investigations & Regulatory Changes – With compliance investigations on the horizon, HR teams must stay proactive.