Key Insights on Executive Order Directing Scrutiny of Private-Sector DEI Efforts

On January 21, 2025, President Trump issued an executive order titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (the Order) directing federal agencies to enforce federal civil rights laws to “combat illegal private-sector DEI preferences” and to identify private entities that may be subject to civil enforcement actions for “discriminatory” DEI practices. The Order has broad implications for the private sector, including universities, nonprofit organizations, and philanthropic foundations, as well as for-profit companies — especially those with federal contracts.

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