Ending Radical And Wasteful Government DEI Programs And Preferencing

January 20, 2025
Presidential Actions

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Action Summary:

  • Purpose: End discrimination programs labeled as DEI that infiltrated Federal Government; ensure equal treatment for all Americans and responsible use of taxpayer resources.
  • Implementation Coordination: OMB, Attorney General, and OPM to lead termination of DEI and DEIA programs; revise Federal employment practices to prioritize performance over DEI factors.
  • Termination Actions: Federal agencies to eliminate DEI offices, initiatives, programs, performance requirements, and assess misleading rebranding of these entities.
  • Reporting Requirements: Agencies to provide lists of DEI-related activities and assess costs/operational impacts of DEI programs since January 2021.
  • Monthly Reviews: Domestic Policy Assistant to convene meetings to evaluate DEI’s impact, compliance barriers, and potential further actions.
  • Severability: Invalid provisions shall not affect the remainder of the order.
  • General Provisions: Order respects existing legal authorities; does not create enforceable rights against the government.

Risks and Considerations

  • Policy Shift and Organizational Change: The executive order eliminates DEI programs across federal agencies, signaling a major shift in government policies on workplace diversity and inclusion. This could impact consulting engagements related to culture, leadership, and workplace change.
  • Impact on Federal Contracts: The directive mandates the termination of DEI-related grants and contracts, which may affect consulting firms providing DEI-related training, strategy, or policy advisory to federal agencies.
  • Reputational Risks: The abolition of DEI initiatives may spark public scrutiny and political debate. Consulting firms that have previously supported DEI initiatives may face challenges aligning with changed federal priorities while maintaining client trust.
  • Operational Adjustments for Clients: Organizations adapting to the new policy may require support in restructuring training, leadership programs, and hiring practices. Consulting firms should assess how to navigate client needs in the absence of DEI-related mandates.
  • Legal and Compliance Considerations: Government contractors and grantees may need to adjust hiring and training policies to comply with the new order, potentially leading to contractual and regulatory adjustments affecting consulting engagements.

Business Implications

The Clearing should assess the impact of this policy change on its consulting engagements with federal clients. Clients with previous DEI programs may require strategy adjustments, leadership development, and workplace culture consulting to navigate the transition. Additionally, firms engaged in diversity and inclusion consulting may need to reposition service offerings to align with changing federal priorities.

Relevance Score: 4

Key Actions:

  • Monitor federal policy changes regarding DEI and environmental justice programs, as their termination may impact government agency clients and contractors.
  • Advise government agencies on leadership, culture, and workplace change strategies to ensure compliance with new federal employment and training policies.
  • Assess potential shifts in organizational practices of federal contractors and grantees who previously provided DEI-related services.
  • Support private sector clients in adjusting diversity and inclusion initiatives to align with evolving federal regulations and expectations.
  • Prepare affected organizations for legislative or policy updates that may arise from ongoing federal reviews of DEI program costs and impacts.

Relevance Score: 4

Average Relevance Score: 4.2

Timeline for Implementation

60-day deadline for agency actions, with ongoing monthly review meetings.

Relevance Score: 3

Impacted Government Organizations:

  • Office of Management and Budget (OMB)
  • Office of Personnel Management (OPM)
  • Department of Justice (DOJ)
  • All Federal Agencies
  • Executive Office of the President

Relevance Score: 5

Responsible Officials

  • Director of the Office of Management and Budget (OMB) – Coordinating the termination of DEI-related programs and policies.
  • Attorney General – Assisting with legal compliance and reviewing Federal employment practices.
  • Director of the Office of Personnel Management (OPM) – Reviewing and revising Federal employment policies.
  • Heads of Federal Agencies, Departments, and Commissions – Terminating DEI programs and reporting compliance.
  • Deputy Agency and Department Heads – Assessing operational and financial impact of past DEI programs.
  • Assistant to the President for Domestic Policy – Convening monthly meetings to review implementation and compliance.

Relevance Score: 5 (Directives impact Cabinet officials and agency heads, with significant government-wide implications).