Companies, nonprofits scramble to comply with DEI orders

What you probably already know: Companies, science agencies and nonprofits are grappling with the wave of anti-diversity, equity and inclusion policies sweeping the nation. Many are struggling to figure out how to comply with President Donald Trump’s various executive orders, while lawyers are working to interpret what he meant by “illegal DEI.” While initially Trump’s orders focused on government policies, private employers across the country are looking at their own policies and asking whether they would attract negative attention and from the new administration.

Why? The Wall Street Journal’s analysis found that the recent orders will impact most big American companies because they sell goods and services to the government. Companies like Microsoft, Google and Boeing would be subject to the president’s efforts to identify the “most egregious and discriminatory DEI practitioners.” Meanwhile, the Labor Department has stated that it will halt all enforcement activity related to discrimination based on gender or race.

What it means: This won’t just impact large government contractors. The moves are expected to have a ripple effect as employers work to avoid the spotlight by continuing diversity programs. Of course, figuring out what, exactly, qualifies as a DEI program is a bit harder. Many companies have embedded these concepts into their hiring practices and have worked to improve belonging at their companies through a variety of thoughtful, integrated efforts. Many colleges offer executive education programs focused on DEI, and are now wondering if they’ll be targeted by the Trump administration. NASA has suspended several programs tied to diversity and the National Institutes of Health have removed the application for a new Environmental Justice Scholars Program.

What happens now? Costco is one of very few companies that has taken a public stance in support of continuing DEI work, even under intense pressure from conservative groups. Other big companies, however, like Target, Meta and McDonald’s, have pulled back on policies as pressures mount. Many expect the Trump administration to target large foundations, as well, where millions of dollars are doled out to nonprofit organizations that work on issues affecting certain demographic groups. The administration has even created a new email address [email protected] that it is using to follow nonprofit organizations that work on DEI. The Office of Personnel Management is using the same email to ask federal employees to report officials who try to resist the president’s anti-DEI executive orders.