By Mae Slater on
 January 27, 2025

Executive Order Ends Federal DEI Programs, Halts Hundreds Of Millions In Contracts

President Donald Trump has made a sweeping change to federal operations by signing an executive order that ends all diversity, equity, and inclusion (DEI) programs across government agencies.

Fox News reported that the move has led to the placement of 395 bureaucrats on leave and the cancellation of around $420 million in DEI-related work.

This executive action, issued on the day of Trump’s inauguration, is set to drastically alter the landscape of federal departments. On the heels of this decision, departmental heads have been tasked with implementing significant changes within a tight timeframe.

The newly formed Department of Government Efficiency, headed by Elon Musk, has already begun the process of discarding contracts previously tied to DEI initiatives.

Creation Of The Department Of Government Efficiency

The executive order came with immediate repercussions. The Office of Personnel Management (OPM) directed all federal departments and agencies to shut down their DEI departments by a Wednesday deadline. As of now, affected employees have been put on paid leave, but it is unclear when, or if, their termination notices might follow.

A memo sent by Charles Ezell, the acting director of OPM, laid out the steps required to end DEI activities. This correspondence, sent out Tuesday evening, instructed the relevant officials to notify their employees about the dismantling of these initiatives by January 22.

The written orders demanded prompt action. By noon on January 23, agency and department leaders were required to provide OPM with comprehensive lists detailing DEI-related offices, employees embedded within them, and associated contracts. This was a move aimed at consolidating data for the planned restructuring.

Further, detailed plans were needed by January 24 to prepare for possible layoffs related to DEI staff. Additionally, officials were asked to report any alterations in contracts or job descriptions that might obscure links to DEI principles.

This executive order is one of several significant actions taken by Trump as he assumes office. Another pivotal move includes recognizing only two genders officially. Additionally, he announced the United States' withdrawal from the Paris climate agreement, signaling a shift in international environmental policy.

Further executive actions under Trump's administration target race and sex-based preferences in employment and education. This includes the rescinding of a Biden-era policy on DEI hiring practices within the Federal Aviation Administration.

Historical Context Of Trump's Actions

The executive order overturns a previous directive issued by President Joe Biden promoting the advancement of diversity initiatives across federal agencies. This marks a significant departure from the efforts put in place over the past few years.

The context surrounding these changes began to unfold rapidly after Trump’s inauguration. Agency and department heads have been operating on tight deadlines to comply with the new regulations stipulated by the executive order.

Despite the substantial nature of the changes underway, reactions within the federal workforce and broader public sphere are yet to be fully observed. The long-term impacts of these decisions on the affected employees, existing frameworks, and ongoing contracts will become clearer as the Department of Government Efficiency continues its mandate.

The immediate future remains uncertain for those directly impacted by these policies. The shifting landscapes of federal operations under Trump's leadership paint a picture of significant change as he initiates his term in office.

As these executive orders come into effect, the broader implications on workforce diversity and inclusion are a central topic of discussion. This executive order's cancellation of massive DEI-focused contracts totaling approximately $420 million further underscores the sweeping changes intended by the Trump administration.

The Department of Government Efficiency, now spearheaded by Musk, represents a new direction for governmental operations, aimed at ending DEI initiatives in the federal landscape.

Written By:
Mae Slater

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