Trump Orders Federal Scrutiny of Corporate DEI Programs (1)

President Donald Trump ramped up his criticism of the private sector’s use of diversity, equity, and inclusion principles in a sweeping executive order issued late Tuesday.

The order aims to “encourage” companies to end “illegal” DEI programs by redefining them as a form of discrimination. It directs a whole-of-government effort to pressure companies to stop using DEI initiatives, ordering the heads of every agency to submit reports on what they can do to discourage such programs.

The request is part of a broader order that also weakened the Department of Labor office that ensures companies that hold contracts with the federal government follow anti-discrimination laws and maintain affirmative action offices. It comes on the second day of the Trump administration, fulfilling long-sought efforts from conservatives who have tried to recast DEI as discrimination against White workers.

High-profile companies from tech giants Meta Platforms Inc. and Amazon.com Inc. to Walmart Inc. have recently retreated from their DEI policies. The tech companies’ moves in particular reportedly came in an effort to appease the new administration.

But other big companies like Apple Inc., Microsoft Corp., and Costco Wholesale Corp. defended their DEI initiatives, revealing a rift in corporate America over how—or if—to best support minority employees.

Trump’s directive reflects an “ignorant” understanding of what DEI policies are, said Michelle Hebl, chair of Rice University’s psychology department, and a scholar on diversity, equity, and inclusion issues.

“The very vast majority of such programs do not give preference to members of a particular race or gender,” Hebl said. “They are programs that do exactly what Trump quotes he is trying to achieve—they ensure that ‘merit, aptitude, hard work, and determination’ are the basis of jobs and not bias, prejudice, legacy, connections, and decisions based on preservation of status-quo.”

The order directs every agency to include in the report up to nine “potential civil compliance investigations” of public companies, large nonprofit corporations or associations, foundations with at least $500 million in assets, state and local bar and medical associations, and colleges and universities with endowments valued at $1 billion or more.

The report would also identify potential lawsuits, regulatory action, or guidance to bring against those entities.

Agencies have about four months to submit reports to the White House.