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• President Trump’s new executive order targets DEI initiatives across federal and private sectors.
• Several companies are refusing to comply with the order, citing commitments to diversity and inclusion.
• Federal agencies are updating their websites and policies to align with Trump’s directives.

Quick Brief

2-Minute Digest

Essential Context

President Trump has signed an executive order aimed at ending diversity, equity, and inclusion (DEI) programs in the federal government and encouraging the private sector to do the same. This move follows his previous efforts to curtail DEI initiatives, which were rescinded by the Biden administration.

Core Players

• Donald Trump – President of the United States
• Federal Agencies – Including USDA, HHS, and the Department of Labor
• Private Sector Companies – Various firms resisting the new directives
• Heritage Foundation – Influential in shaping Trump’s policies through Project 2025

Key Numbers

• 60 days – Timeframe given to federal agencies to end DEI-related practices
• 120 days – Deadline for the Attorney General to submit a report on private sector DEI policies
• $500 million – Minimum asset threshold for non-profit organizations targeted in the EO
• $1 billion – Endowment threshold for institutions of higher education under scrutiny

Full Depth

Complete Coverage

The Catalyst

President Trump’s executive order, signed on January 21, 2025, marks a significant escalation in his administration’s efforts to dismantle DEI programs. This move is part of a broader strategy outlined in the Heritage Foundation’s Project 2025.

“We are committed to ending illegal discrimination and restoring merit-based opportunity,” the White House stated in a fact sheet.

Inside Forces

Federal agencies are rapidly updating their websites and internal policies to comply with the new order. This includes removing DEI-related content and discontinuing related programs. For example, the USDA and the Department of Labor have removed entire web pages dedicated to DEI efforts.

Additionally, federal contractors are no longer required to comply with Executive Order 11246, which mandated affirmative action policies.

Power Dynamics

The Trump administration’s move has significant implications for power dynamics within both the federal government and the private sector. Republicans are expected to gain majority control of the Equal Employment Opportunity Commission (EEOC), which could further pressure companies to abandon DEI initiatives.

Conservative activists have been filing EEOC charges against companies with strong DEI commitments, alleging these practices are discriminatory.

Outside Impact

The impact of this executive order extends beyond federal agencies. Private sector companies, even those not contracting with the federal government, are encouraged to eliminate DEI programs. The Attorney General is tasked with submitting a report to identify and deter DEI programs that constitute illegal discrimination.

This has led to public pressure, with some companies facing boycotts and backlash for their DEI policies.

Future Forces

Looking ahead, several key sectors will be under scrutiny, including publicly traded corporations, large non-profits, and institutions of higher education. The Attorney General’s report will outline a strategic enforcement plan, including potential civil compliance investigations and litigation.

Companies are considering broadening definitions of diversity and developing race-neutral approaches to hiring to withstand potential legal challenges.

Data Points

• January 21, 2025 – Date of the executive order
• 60 days – Deadline for federal agencies to end DEI-related practices
• 120 days – Deadline for the Attorney General’s report on private sector DEI policies
• $500 million – Asset threshold for targeted non-profit organizations
• $1 billion – Endowment threshold for targeted institutions of higher education