Trump signs executive order ending diversity discrimination in federal government, private sector

Washington, DC [US], January 22 : US President Donald Trump signed an executive order on January 21, 2025, titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," with the aim of eliminating race- and sex-based preferences that he argues violate longstanding federal civil-rights laws, in an official statement by the White House.
The order challenges current Diversity, Equity, and Inclusion (DEI) policies adopted by federal agencies, major corporations, financial institutions, educational institutions, and other key sectors of American society.
Trump asserts that such policies undermine individual merit, civil rights protections, and the core values of hard work, excellence, and personal achievement.
In the executive order, Trump describes DEI policies as harmful, claiming they foster an "identity-based spoils system" that unfairly prioritises race, sex, and other protected characteristics over merit and qualifications. He argues that these policies not only violate the Civil Rights Act of 1964 but also threaten the safety and prosperity of American citizens by diminishing the value of individual merit in critical sectors such as law enforcement, medicine, aviation, and government. According to Trump, such preferences have led to "tragic" consequences where competence and ability were overshadowed by identity-based selection, jeopardising public safety and eroding trust in institutions.
The order directs all federal executive agencies to immediately terminate any discriminatory practices, mandates, programs, regulations, or actions related to DEI. Trump calls on these agencies to strictly enforce existing civil rights laws and ensure that private-sector DEI programs comply with federal non-discrimination standards. By focusing on merit and individual accomplishment, the president's policy aims to remove what he sees as a system that shuts out hardworking Americans based on their race or sex.
To implement this vision, Trump revokes several previous executive orders that he claims promoted discriminatory practices under the guise of diversity and inclusion. These include Executive Order 12898 (Environmental Justice), Executive Order 13583 (Promoting Diversity in the Federal Workforce), Executive Order 13672 (Amendments to Equal Employment Opportunity), and a 2016 memorandum on diversity in the national security workforce. The revocation of these measures is meant to streamline federal operations, reduce costs, and enhance efficiency in contracting processes, while ensuring that no contractor is required to engage in race- or sex-based workforce balancing.
The new rules affect federal contractors as well. Under the order, contractors will no longer be required to take affirmative action or meet quotas based on race, sex, or other demographic factors. The Office of Federal Contract Compliance Programs within the Department of Labour will cease promoting diversity efforts among contractors, and all contracts and grant awards will include terms that ensure compliance with civil rights laws. Contractors must also certify that they do not operate programs that violate federal non-discrimination rules related to DEI. This shift is designed to ensure that government contracts and grants are awarded based on compliance with the law rather than identity-based preferences.
The executive order also tasks the Attorney General and other federal officials with reviewing and revising all existing guidelines related to federal procurement and contracting, with the goal of removing references to DEI and similar concepts from government operations. This review aims to improve the speed and efficiency of federal processes, lower costs, and guarantee that all actions are consistent with civil rights laws, as per the White House in the statement.
In addition to changes within the federal government, the order aims to influence the private sector. The Attorney General, in consultation with other agencies, is directed to develop a report on strategies to curb illegal DEI practices in private-sector businesses. This report, due within 120 days, will include a plan for investigating and potentially litigating against corporations, non-profit organisations, and educational institutions that engage in DEI practices that violate civil rights laws. The plan will focus on sectors with substantial financial resources, including publicly traded companies, medical associations, and universities with large endowments.
Moreover, the executive order mandates that within 120 days, the Attorney General and the Secretary of Education issue guidance to all state and local educational agencies that receive federal funds. This guidance will focus on ensuring compliance with the 2023 Students for Fair Admissions v President and Fellows of Harvard College Supreme Court ruling, which prohibits race-based admissions practices. The order reinforces that this ruling must be applied to all federally funded educational institutions, ensuring that admissions are based solely on individual merit rather than demographic factors.
While the order does not affect lawful preferences for veterans or individuals covered by other specific protections, it does prohibit any practices that violate civil rights laws.
Additionally, the order makes clear that it does not restrict individuals from exercising their First Amendment rights to engage in speech or advocacy related to DEI, as long as it does not conflict with the civil rights framework outlined in the order, the official statement relayed.
Trump's executive order represents a sharp pivot from the policies of previous administrations, emphasising merit-based practices and a strict interpretation of civil rights laws. By targeting both government and private-sector DEI programs, the order seeks to address what the president sees as a growing trend of unlawful discrimination that prioritises group identity over individual achievement. The new policies are positioned as a way to restore fairness, accountability, and a focus on competence across all levels of society.