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Navigating Trump administration executive orders impacting diversity, equity, and inclusion (DEI) initiatives.

By Danielle Conley, Betty M. Huber, and Jude Volek

See EO: Ending Illegal Discrimination and Restoring Merit-Based Opportunity

Date Issued: January 21, 2025

Summary: This EO directs federal agencies to take steps to target private-sector diversity, equity, and inclusion (DEI) practices and has broad implications for universities, non-profit organizations, and for-profit companies. The EO directs the creation of a strategic plan for enforcing the federal civil rights laws and taking other measures to encourage the private sector to “end illegal discrimination and preferences, including DEI.” This plan must identify key sectors within each agency’s jurisdiction; the most “egregious and discriminatory DEI practitioners” in each sector; litigation that would be potentially appropriate, including intervention and statements of interest; and potential regulatory action and sub-regulatory guidance.

  • Significantly, the EO directs each agency to identify “up to nine potential civil compliance investigations of publicly traded corporations, large non-profit corporations or associations, foundations with assets of $500 million dollars or more, State and local bar and medical associations, and institutions of higher education with endowments over $1 billion dollars.”
  • The EO will likely result in increased federal enforcement activity targeting DEI programs and initiatives. Notably, the EO does not define DEI; enforcement could target a wide range of programs and initiatives, including practices related to recruitment, employment, promoting inclusion, and other efforts to advance equity. 
  • The EO also requires guidance to all educational institutions receiving federal funds regarding the measures required to comply with the Supreme Court’s 2023 affirmative action decision.
  • The EO also creates specific requirements for federal contractors. The EO rescinds EO 11246, which has long set requirements for equal opportunity in federal contracting. In its place, the EO directs that the federal contractors “shall not consider race, color, sex, sexual preference, religion, or national origin in ways that violate the Nation’s civil rights laws” and requires federal contractors to certify they do not operate DEI programs violating federal anti-discrimination laws. These certifications could give rise to potential False Claims Act litigation targeting DEI programs.  

Timeline: Immediate rescission of EO 11246. Strategic Enforcement Plan due within 120 days. Federal contractors may continue to comply with the regulatory scheme in effect on January 20, 2025 (prior EEO policies) for 90 days from the date of the EO. Beginning April 22, 2025, each Federal contractor will be required to certify “that it does not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.”

Latham & Watkins has a proven track record of guiding clients through transitions in US administrations, leveraging our deep expertise and understanding of the evolving regulatory landscape. In the first week of the Trump Administration, a total of 48 executive orders were issued, marking a significant and rapid commencement of policy changes with potential impacts across business sectors. This package provides a concise analysis by Latham lawyers of 15 key executive orders that are anticipated to have the most substantial business implications.

For a comprehensive list of all executive orders issued, please visit the official White House website.

Additional details about Latham’s capabilities as well as contact information for several Latham lawyers with former government experience or who serve as key contacts in relevant practice areas, can be found at the end of this package.

We welcome the opportunity to connect with you to understand your specific needs and explore how we can assist you in navigating these changes. Please reach out to Latham for more detailed analysis and to stay informed about additional insights as they become available.