Executive Order Shakes Up Federal Diversity Programs and Contracts

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President Trump’s executive order dismantles federal DEI programs, affecting hundreds of employees and millions in contracts.

Key Takeaways

  • President Trump’s executive order terminates all federal diversity, equity, and inclusion (DEI) programs.
  • 395 government employees have been placed on leave due to the order.
  • Approximately $420 million in DEI-related contracts have been canceled.
  • The Department of Government Efficiency, led by Elon Musk, is overseeing the transition.
  • The order aims to return to a merit-based system, reversing Biden-era policies.

Trump’s Executive Action Reshapes Federal Landscape

President Donald Trump has issued a sweeping executive order that eliminates all federal diversity, equity, and inclusion (DEI) programs. This decisive action has immediately impacted 395 government employees who have been placed on paid leave and resulted in the cancellation of approximately $420 million in DEI-related contracts. The move marks a significant shift in federal policy, reversing initiatives implemented during the Biden administration.

The Department of Government Efficiency (DOGE), under the leadership of Elon Musk, announced the contract cancellations. This newly established department is tasked with overseeing the transition away from DEI programs and ensuring the implementation of Trump’s executive order across federal agencies.

Returning to Merit-Based Systems

President Trump’s executive order aims to dismantle what he referred to as former President Joe Biden’s “diversity, equity, and inclusion mandates” and reestablish a merit-based system within the federal government. The Office of Personnel Management (OPM) has taken swift action to enforce the new directive, issuing a memo that instructs all DEI employees to be placed on paid leave. “Return our country to the merit system” stated President Donald Trump during the signing.

Agency heads have been directed to close DEIA (Diversity, Equity, Inclusion, and Accessibility) offices, remove related media, and cancel DEIA-related contracts and training programs. This comprehensive approach ensures that the executive order’s impact is felt across all levels of federal government operations.

Implementation and Reporting Requirements

The executive order includes strict reporting requirements for federal agencies, agencies must report to OPM on the steps taken to implement the memo and provide detailed lists of DEIA offices and contracts. This measure is designed to ensure full compliance with the new directive and to prevent any attempts to circumvent the order.

Agencies have also been instructed to inform employees about the DEI shutdown and remove any DEI-related online content. Furthermore, they are required to report any attempts to disguise DEI programs using coded language, demonstrating the administration’s commitment to thoroughly eliminating these initiatives.

Broader Policy Shifts

Trump’s executive order on DEI programs is part of a larger series of actions taken on his first week in office. These include recognizing only two genders and withdrawing from the Paris climate agreement. Additional executive actions were issued to end race and sex-based preferences in the workplace and higher education, as well as to eliminate DEI hiring priorities at the Federal Aviation Administration.

These actions collectively represent a significant reversal of policies implemented during the Biden administration, particularly the executive order on “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government.” The Trump administration’s approach signals a return to policies that prioritize merit and individual achievement over group-based considerations in federal employment and contracting.

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Trump’s Blow to Federal DEI Programs Places Hundreds of Bureaucrats on Leave, Slashes $420M in Contracts

Trump’s federal DEI purge puts hundreds on leave, nixes $420M in contracts