Today, the 47th President announced broad based allegations that corporate and educational diversity, equity, and inclusion (DEI) programs are discriminatory and illegal. The President issued Executive Order 14151, titled “Ending Radical and Wasteful Government DEI Programs and Preferencing” (EO 14151). In it, the president ordered
each agency, department, or commission head, in consultation with the Attorney General, Director of OMB, and the Director of OPM, to terminate all DEI, DEIA, and “environmental justice” offices and positions, all “equity action plans,” “equity” actions, initiatives, or programs, “equity-related” grants or contracts; and all DEI or DEIA performance requirements for employees, contractors, or grantees.
At this time however, the president has not defined or provided sufficient demonstration of what constitutes “DEI” and how the government intends to define it. This executive order will likely lead to businesses preemptively rushing to cancel DEI positions and programs without sufficient discussion or legal counsel out of fear of noncompliance. Consequently, businesses will experience increased anxiety and concerns around funding and other potential damages to their businesses.
We encourage our clients and communities to remain focused on their organizational values and mission as their north stars as they navigate a tumultuous 4 years ahead. Undoubtedly, there will be job losses and budget cuts. Today however, we remind everyone that the overly vague and capacious EO will likely be held up in courts, and if determined to be so, will be found illegal and unconstitutional. We advise that you cautiously prepare for tighter budgets and implore that you not run to cutting jobs and programs too hastily, as this will undoubtedly lead to increased tensions, confusion, and disengagement from your critical people and organizationally focused efforts. Don’t hesitate to reach out to us with any questions or concerns.
