The 2025 re-election of President Donald Trump has ushered in sweeping changes to the diversity, equity, and inclusion (DEI) landscape in the United States. While the broader social and political environment presents significant challenges, recent data reveals a steadfast commitment to DEI from both employees and employers.
Despite disheartening headlines declaring “DEI is dead,” a recent survey of 1,000 companies found that 7 of 8 organizations do not plan to weaken DEI commitments in 2025. Seramount data similarly demonstrates that 80% of organizations remain dedicated to their DEI efforts, with another 10% intensifying their focus.
Yet the first weeks of President Trump’s second term have brought significant federal policy changes to the DEI landscape, leaving DEI leaders to navigate numerous new challenges.
This article analyzes these policy shifts in the wake of Trump’s inauguration and their implications for DEI leaders, offering actionable insights for leaders seeking to maintain inclusive workplaces now.
The advice provided in this piece, however, is intended for solely for advisory purposes. Please consult your legal counsel to determine the most appropriate course of action for your organization.
DEI Policy Shifts in the Early Days of Trump’s Second Term
Trump’s new executive orders are already reshaping the DEI landscape. These orders primarily target federal DEI initiatives, but their ramifications extend to federal contractors and private corporations. The first key order with significant implications for DEI programs is “Ending Radical and Wasteful Government DEI Programs and Preferencing.” Its provisions include:
- Overturning President Joe Biden’s Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, which required federal departments to advance equity and inclusion.
- Terminating all “all discriminatory programs, including illegal DEI and ‘diversity, equity, inclusion, and accessibility’ (DEIA) mandates, policies, programs, preferences, and activities in the Federal Government” within 60 days.
Unpacking Trump’s “Anti-Affirmative Action Executive Order”
Another key executive order, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” is poised to further redefine inclusive hiring and promotion practices in the public and private sectors.
Commonly referred to as the “anti-affirmative action executive order,” this order specifically challenges policies such as Executive Order 11246, signed by President Lyndon B. Johnson in 1965 to promote nondiscrimination and affirmative action in federal employment.
Key provisions of Trump’s order include:
- Ending “all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements.”
- Requiring federal agencies to enforce “civil rights laws” and to investigate “illegal private-sector DEI preferences, mandates, policies, programs, and activities.”
- Removing all references to DEI values and programs from “federal acquisition, contracting, grants, and financial assistance procedures.”
- Encouraging the private sector to align with principles of “individual initiative, excellence, and hard work.”
The order also empowers federal agencies to scrutinize up to nine high-profile organizations, including:
- Publicly traded corporations
- Nonprofits with assets over $500 million
- Professional associations like state bar or medical organizations
- Higher education institutions with endowments exceeding $1 billion
Trump’s order signals a dramatic shift from longstanding institutional DEI norms and initiatives to what the administration describes as a merit-based framework. Its enforcement and broader implications are already prompting significant debate and scrutiny, which we expect to continue in the months ahead.
Trump’s Impact on Federal Agencies’ Approaches to DEI
Trump is also dramatically shifting the approach of the Equal Employment Opportunity Commission (EEOC) and other federal agencies. Andrea R. Lucas, who was appointed by Trump as Acting Chair of the EEOC, has made it clear that the administration’s executive orders on DEI will guide her priorities. She has stated that her goals are to address what she sees as “unlawful DEI-motivated race and sex discrimination” in addition to “protecting American workers from anti-American national origin discrimination”; “defending the biological and binary reality of sex”; and “protecting workers from religious bias and harassment.”
Meanwhile, the Justice Department, under new guidance from the administration, has shifted focus as well. A January 22 memo directed the Civil Rights Division to halt many ongoing investigations and stop pursuing new indictments, signaling a reduced emphasis on enforcing protections of individual rights for historically excluded groups.
Implications for Corporate America
Trump’s administration also recently directed that all federal DEI staff be placed on paid leave and eventually laid off. Actions such as these, combined with the vague language of the two executive orders described in the article above, create significant uncertainty for private-sector organizations.
Legal experts caution that while the orders primarily target federal agencies and contractors, the heightened scrutiny and potential legal risks could make corporations hesitant to advance DEI initiatives.
Kenji Yoshino, for example, a constitutional lawyer advising on corporate DEI, argues that the ambiguity is specifically designed to “strike fear into organizations’ hearts,” prompting a cautious approach to DEI programming.” According to Yoshino, we should expect a general climate of corporate risk aversion in the lead up to the selection of Trump’s nine organizations for increased scrutiny as major corporations “just don’t want to be one of those nine.”
Addressing the Challenges:
3 Ways to Navigate 2025’s Complex Landscape:
1. Legal Compliance and Risk Mitigation
Organizations must balance prioritizing compliance with evolving federal guidelines with maintaining effective DEI programs. Recommendations from leading employment law firm Fisher Philips include:
- Regular Legal Reviews: Consult legal counsel to ensure the development of a plan to ensure DEI initiatives comply with new federal policies and requirements.
- Monitoring Guidance: Stay informed about updates from the Office of Federal Contract Compliance Programs (OFCCP) and other regulatory bodies.
- Tracking Legal Challenges: Remain up to date on legal challenges from civil rights groups and other organizations.
While the experts at Fisher Philips recommend employers immediately review their DEI programs, they also note that “well-designed DEI programs are not illegal.”
2. Internal Focus on Data-Driven Inclusivity
With public proclamations under increased scrutiny, organizations can focus inwardly to advance measurable, inclusive outcomes supporting employees:
- Data-Driven Programs: Design DEI efforts that rely on measurable outcomes and align with organizational goals.
- Inclusive Culture Building: Foster shared goals and values that unite diverse teams.
- Employee Well-Being: Invest in programs that address mental health, work-life balance, and other aspects of employee satisfaction.
3. Proactive Communication
Transparency and open communication are critical to maintaining trust:
Broader Impacts on Culture and the Workforce
Trump’s post-inauguration policy changes also intersect with several other key issues, including:
- Gender Identity: Trump’s executive order entitled “Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government” eliminates recognition of gender identity by recognizing only “two sexes, male and female.” Although this order notably impacts federal contractors and federally funded agencies and organizations, the corporate sector has already experienced growing employee concern about the state of gender inclusivity as a result.
- Immigration: Heightened enforcement and changes to immigration policy are likely to affect many immigrant employees. Fisher Philips warns that employers can expect to feel the workplace impact of recent immigration raids. They recommend employers:
- Review I-9 compliance
- Conduct I-9 audits
- Train managers and HR professionals to properly complete these and other immigration forms
- Consider using E-Verify
- Establish a regular response plan to handle any potential interactions with U.S. Immigration and Customs Enforcement (ICE)
Providing resources to support affected immigrant workers will also be business critical.
Hope Amidst Uncertainty
There’s reason for optimism despite the significant new challenges this article describes. The resilience of DEI leaders and efforts within organizations signal that the values of equity and inclusion remain integral to the workplace. All corporate leaders have a unique opportunity to shape the future by doubling down on DEI today—not as a response to external pressures, but as a reflection of the world we aim to build.
Equally important in the hope for DEI’s future: new Seramount data underscores continued DEI commitment from employees and customers. Our most recent national survey of 3,000 US workers found that nearly 80% continue to prioritize inclusive workplaces. Despite the seemingly incessant headlines about DEI pushback, this commitment aligns with other recent findings that most organizations are continuing—even strengthening—their DEI efforts.
DEI in 2025: Moving Forward Together
The road ahead is far from simple. Societal divides, political polarization, and socio-economic disparities will test our collective resolve. As Trump’s second term unfolds, the landscape for DEI will undoubtedly continue to shift.
But by staying informed, agile, and steadfast in our commitment, together we can navigate these turbulent times and emerge stronger, more inclusive, and more united than ever.
For additional tips, explore Seramount’s full library of resources, including:
By joining together to think bigger about DEI, we can act smarter, creating inclusive workplaces that not only truly reflect our shared values—but also drive unprecedented growth, innovation, and success.
Contact us to learn more about our DEI Research Partnership and how we can support your organization’s success during these uncertain times.
