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Factbox-Key directives in Trump DEI executive order for government, private sector

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January 22, 2025
in Investing
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Factbox-Key directives in Trump DEI executive order for government, private sector

By Kanishka Singh

WASHINGTON (Reuters) – U.S. President Donald Trump issued an executive order late on Tuesday that directed government agency chiefs to dismantle diversity, equity and inclusion (DEI) policies at federal agencies, federal contractors and in the private sector, the White House said.

Here are some key directives from the order:

REVOKES PAST EXECUTIVE ACTIONS

The order asks for “terminating illegal discrimination in the federal government.”

It revokes executive policies dating as far back as 1965 on equal employment opportunities, environmental actions designed to protect communities of color, and “workforce balancing” efforts by federal contractors based on race, gender and religion.

Civil rights and diversity advocates have argued such policies are necessary to address longstanding inequities.

PRIVATE SECTOR ‘ENCOURAGED’ TO END DEI

In one section, the order encourages the private sector to “end illegal DEI discrimination and preferences.” It added that “the heads of all agencies, with the assistance of the Attorney General, shall take all appropriate action with respect to the operations of their agencies to advance in the private sector the policy of individual initiative, excellence, and hard work.”

ATTORNEY GENERAL TO SUBMIT REPORT

The order asks the U.S. attorney general to consult government agencies and submit within 120 days a report “containing recommendations for enforcing federal civil-rights laws and taking other appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI.”

The report would list the most “egregious and discriminatory DEI practitioners” in each sector of concern and spell out measures to deter DEI programs or principles that constitute “illegal discrimination,” the order said.

As part of the plan, each agency would have to identify up to nine “potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of $500 million or more, state and local bar and medical associations, and institutions of higher education with endowments over $1 billion.”

The order does not elaborate on potential regulatory action or penalties.

EDUCATION REPORT

The order says within 120 days from Tuesday, the attorney general and the education secretary shall jointly issue guidance to all educational agencies that receive federal funds regarding compliance with a 2023 ruling in which the U.S. Supreme Court rejected affirmative action in university admissions.

This post appeared first on investing.com
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