...The orders go far beyond the federal government. Trump also directed agencies to draw up lists of public companies to investigate over their DEI policies — a move that legal experts said could send chills through the private sector. The Justice and Education departments also were required to issue guidance to educational agencies and universities on ways to comply with the Supreme Court’s landmark decision banning race-conscious admissions...
The executive orders stand to reach deep into the private and government-contracting sectors, said Jason Schwartz, a partner at Gibson Dunn and co-chair of the law firm’s labor and employment group. The attorney general and agency heads have been tasked with identifying as many as “nine potential civil compliance investigations” of publicly traded corporations; large nonprofits or associations; foundations with assets of $500 million or more; state bar associations; medical associations; or universities with endowments over $1 billion.*
...He also highlighted new prohibitions on federal contractors and grant recipients from participating in many affirmative action or DEI measures. Violations are subject to the False Claims Act, which can bring heavy financial penalties — while lawsuits could be filed either by the government or private actors. “They are handing out sheriff’s badges to private citizens to sue about government contractor DEI programs,” Schwartz said...
Full story at https://www.washingtonpost.com/business/2025/01/23/trump-dei-affirmative-action/.
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*We noted the endowment matter - which covers UC and UCLA - in a prior post:
https://uclafacultyassociation.blogspot.com/2025/01/just-so-you-know.html.
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