Diversity, Equity, and Inclusion Under Trump

PUBLISHED MARCH 2025

On Jan. 20 and 21, President Trump signed two executive orders targeting diversity, equity, and inclusion or diversity, equity, inclusion, and accessibility initiatives and policies in the federal government and in the private sector. These executive orders establish that such policies violate federal civil rights laws as, in general, they promote attention to an individual’s demographic identities. While these executive orders do not specifically target women and women-owned businesses, by targeting DEI initiatives, women and WOBs may ultimately be impacted. 

Impacts on Federal Agencies

Executive Order 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” focuses on DEI initiatives and policies within the federal government’s own activities. It orders all federal agencies to eliminate all DEI-related offices and positions within each federal agency. This specifically includes chief diversity officer positions; any equity plans developed under prior executive orders; and “‘equity’ actions, initiatives, or programs, ‘equity-related’ grants or contracts; and all DEI or DEIA performance requirements for employees, contractors, or grantees.” While this executive order purports to impact only federal government entities, the impacts on the private sector were almost immediate. 

On Jan. 27, in response to this executive order, the Office of Management and Budget temporarily paused all agency grants, loans, and other types of financial assistance programs to allow federal agencies to complete an analysis of their programs to ensure the terms related to any federal financial assistance abide by the requirements set forth in E.O. 14151. While the memorandum announcing the pause of funding was ultimately withdrawn on Jan. 29, and the federal funding freeze blocked via the issuance of a preliminary injunction granted by a Maryland Court (discussed below), many programs and businesses in the private sector that rely on federal funds were suddenly without funding for a significant period of time.

Impacts on the Private Sector

In addition to requiring the removal of DEI-related positions and policies under E.O. 14151, President Trump issued Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This order focuses on DEI activities in the private sector and revokes multiple prior executive orders relating to DEI initiatives and policies. 

Of the revoked executive orders, the revocation that may have the greatest impact on women is the revocation of Executive Order 11246, a longstanding order geared towards equal employment opportunity. Executive Order 14173 has weakened the Office of Federal Contract Compliance Programs’ ability to enforce civil rights for federal contractors, as that office no longer has the enforcement powers granted by E.O. 11246. 

Additionally, E.O. 14173 directs the attorney general to plan steps to deter DEI programs and take measures to encourage the private sector to end them altogether. The attorney general is also tasked with identifying potential civil compliance investigations against private sector companies to accomplish such deterrence.

The combination of these two executive orders, particularly the far-reaching nature of the terms, has created a lot of uncertainty and will likely have a chilling effect on companies with existing DEI programs or other programs aimed at making proactive efforts to address disparities, specifically gender disparities, in the workplace. 

This policy shift may concern women and WOBs who rely on or intend to apply for federal funding. WOBs contributed $1.9 trillion to the U.S. economy and represent 42 percent of all businesses in the United States. In 2022, alone the federal government awarded $30 billion in contracts to women-owned businesses. Under the new executive orders and the rolling back of protections and initiatives supporting DEI principles, it is likely these figures may be affected, though the extent of the impact may not be apparent for some time. 

Current Events

As with several of President Trump’s other executive orders, the legal status of E.O. 14151 and 14173 continues to change. On Feb. 21, a Maryland Court issued an injunction blocking certain aspects of the orders (e.g., the funding freeze) but allowing other portions of the orders to continue. Subsequently, the U.S. Court of Appeals for the Fourth Circuit granted a temporary stay, allowing the previously blocked portions to continue. The temporary stay reintroduces the initial uncertainty created by the executive orders as the private sector, including WOBs, awaits more definitive guidance from the courts.