President Donald Trump’s crackdown on diversity, equity, and inclusion (DEI) is causing upheaval in the private sector as companies fear losing federal contracts or facing investigations. Booz Allen Hamilton and Goldman Sachs are among the firms making significant policy changes in response to Trump’s executive orders reshaping diversity initiatives. Walt Disney is adjusting its DEI programs to focus more on business outcomes, while the Federal Communications Commission is probing Comcast’s DEI practices. Trump’s push for a “colorblind and merit-based” society is intensifying existing challenges in the DEI landscape, prompting concerns about the future impact.

Conservative foundations and political operatives, emboldened by a 2023 Supreme Court ruling on affirmative action, are actively opposing DEI initiatives that they perceive as prioritizing race and gender over individual merit. Trump’s directives to target discriminatory DEI practices in private-sector organizations have sparked panic in the business world, leading some companies like Google and Meta to scale back their diversity programs. Amid this environment, lawsuits and investigations targeting DEI initiatives are expected to increase, posing risks for high-profile companies.

While some corporations, like Costco and JP Morgan Chase, are standing firm on their DEI commitments, others are reevaluating their programs due to cost concerns or external pressures. Starbucks is facing a lawsuit alleging illegal discrimination in its diversity policies, signaling a potential trend of legal challenges against large companies’ DEI practices. As the anti-DEI campaign gains momentum, businesses are navigating a complex landscape balancing legal risks, public perception, and internal priorities.