Navigating DEI uncertainty during Trump administration

Diversity, equity, and inclusion (DEI) programs have been a feature in American workplaces for decades. It’s no secret, however, that they have become the most recent target of criticism from a certain segment of the population, including President Donald Trump.

In January 2025, the president issued multiple Executive Orders (EOs) taking aim at eliminating DEI programs in federal agencies. On January 21, 2025, however, he issued EO 14173—entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”—which targets DEI programs in the private sector. EO 14173 also dramatically changes the affirmative action requirements for private employers that are federal contractors. Failure by federal contractors to comply by April 22, 2025, could result in their federal contracts being suspended or terminated—or even worse, debarment of non-complying federal contractors from future federal contracts.

What EO 14173 says

EO 14173 encourages private employers to end DEI programs that “illegally discriminate.” To accomplish this goal, the U.S. attorney general, upon consultation with the relevant federal agency heads, is charged with developing steps to deter DEI programs involving “illegal discrimination or preferences,” identifying “egregious and discriminatory DEI practitioners,” and evaluating litigation options against employers whose DEI programs are unlawful.