We’re only seven months into this administration, and the impact on diversity, equity, and inclusion (DEI) is already deeply felt. DEI was among the first targets, and we continue to see policies, lawsuits, and messaging that attempt to undo long-overdue progress.
It’s clear that this administration has no interest in addressing the legacy of historical laws, policies and practices that ensured an inequitable society. Instead, it’s working to reverse the momentum that DEI efforts exist to address, attacking the very idea of fairness for people of all races, genders, sexualities, and abilities.
There’s been a deliberate effort to twist the meaning of DEI. We’ve seen it falsely portrayed as exclusionary, with outrageous claims that it disadvantages white people. That’s simply not true. DEI is about intentionally creating access so that people historically pushed to the margins can even be in the room, let alone advance.
And while politics have always influenced business, the intrusion is more visible—and more damaging—than ever. Across industries, companies are walking back their DEI commitments, laying off entire teams, and quietly getting rid of policies that once signaled progress. And when the first departments to go during layoffs are the ones focused on equity and inclusion, it sends a loud message about where priorities truly lie.
How Politics Are Impacting DEI
Political backlash against DEI has moved beyond rhetoric and into policy, legal threats, and active rollbacks in the workplace.
One example: America First Legal, founded by Trump ally Stephen Miller, filed a civil rights complaint against the Los Angeles Dodgers and Guggenheim Partners. Their reasoning? The organizations supported initiatives for Asian American, Black, and Latino communities. They’re now trying to use civil rights law—meant to protect marginalized people—to dismantle efforts designed to uplift them.
Just days later, they filed a similar complaint against Johns Hopkins University.
These lawsuits are part of a larger, coordinated strategy to scare companies away from equity efforts and redefine inclusion as “reverse discrimination.” Not only that but it’s a part of a larger effort to undo progress from years ago like the civil rights movement.
And it’s working.
According to a July 2025 report by Resume.org, since Trump’s reelection:
- 1 in 5 companies have eliminated their DEI programs
- 10% have reduced investment
- 16% are expected to drop DEI completely by year’s end
Among those that eliminated DEI:
- 57% report hiring fewer underrepresented employees
- 1 in 3 report promoting fewer people from marginalized groups
- Nearly half say morale has dropped
The report highlights a disturbing reality: most companies never embedded DEI into their core operations. Once the pressure came, many defaulted back to exclusionary norms, proving that without intention, equity falls apart quickly.
Why DEI Still Matters—Despite the Political Pressure
DEI is not just a trend or a nice-to-have; it is the foundation for fair, innovative, and thriving workplaces. According to a report from Resume.org, companies that invested in focused DEI programs saw more diverse hiring. However, when those programs were cut, bias quickly resurfaced. Many organizations slipped back into exclusionary habits that quietly shut out BIPOC, LGBTQIA+ individuals, women of color, and people with disabilities.
The consequences of abandoning DEI go beyond ethics; they are tangible and damaging. Workplaces lose valuable talent, become less inclusive, innovation slows down, and public trust deteriorates. These effects don’t stop at the office door. They ripple outward into education, healthcare, and communities. Inclusion shapes who gets access to opportunity, period.
Research Backs this Up
Employee performance increases by 26 percent in workplaces with strong fairness policies (WorldatWork). Paid family leave boosts workforce participation among new mothers, supporting economic stability (NCFR). Companies with top-tier gender and ethnic diversity financially outperform their peers by 25 and 27 percent, respectively (McKinsey & Company). Inclusive teams also make better business decisions nearly 9 out of 10 times and do so faster with fewer meetings (LinkedIn Learning).
Despite this, setbacks persist. The gender wage gap in the U.S. widened in 2023 for the first time in over 20 years. Women now earn just 75 cents for every dollar earned by men, with women of color experiencing the largest disparities. Factors such as discrimination, harassment, job segregation, and insufficient caregiving policies contribute to this gap.
Ageism and ableism remain barriers as well. Half of women under 30 say their age has held them back at work. Meanwhile, 74 percent of employees who requested workplace accommodations faced at least one denial, often due to perceived costs or implementation challenges. Leadership advancement is also unequal; for every 100 men promoted to manager, only 87 women advance. That number drops to 73 for women of color.
Many companies treat DEI performatively—promoting initiatives to attract consumers from marginalized communities but quietly dismantling those efforts when political pressures rise. This approach not only stalls real progress but also sends a clear message about what a company truly values.
And this is why DEI still matters. It matters because people deserve the opportunities they have historically been denied. It matters because everyone should be protected, included, and empowered to thrive. DEI is about ensuring fairness and access so that workplaces—and society as a whole—can benefit from the full talents and contributions of all people.
What Organizations Can Do Now
You don’t need to be in charge to make a difference, but everyone has a role to play. Whether you’re a leader or an employee, now is the time to lean in—real DEI work matters.
Stay informed and keep an eye out for quiet rollbacks. Notice if DEI statements vanish from websites or programs lose funding without explanation. If you’re comfortable, speak up when equity efforts are dismissed as “too political.” If speaking out publicly isn’t safe, consider raising concerns privately with trusted colleagues or using anonymous feedback channels.
Call out legal or political moves that threaten to reverse progress by sharing accurate information with your network to increase awareness. Go beyond headlines—seek to understand the full story.
Invest in education by supporting or participating in internal learning around equity and bias. Encourage knowledge sharing that empowers teams without fear.
For leaders, center inclusion in your organization’s values and clearly communicate that DEI isn’t about politics—it’s about creating a workplace where everyone has a fair chance.
Remember, companies that give in to political pressure risk more than lawsuits or bad PR—they risk losing employee trust, loyalty, relevance, public support, and ultimately money.
Final Thoughts
This moment matters. There is a coordinated effort to undo decades of hard-fought equity work and to convince people that it was never needed in the first place.
But the data, and the real-life stories, tell a different truth.
Even companies like Target, which scaled back diversity efforts under pressure, are feeling the fallout. In Q1 of this year, they reported a 2.8% drop in sales, falling to $23.85 billion—a sign that abandoning DEI can carry real business consequences (source).
We know people are tired. But we also know this: equity work was never easy. It was never convenient. And the pushback is proof that it’s powerful.
Don’t stop paying attention. Don’t let misinformation become policy. And don’t let fear replace fairness.
We’re not giving up—and neither should you.
Power in Perseverance, Strength in Community