On January 20, 2025, President Donald Trump signed an executive order that officially terminates diversity, equity, and inclusion (DEI) initiatives within the federal government. The order, titled “Ending Radical and Wasteful Government DEI Programs and Preferencing,” has sparked significant discussions across industries, particularly among federal contractors and private-sector businesses with DEI commitments. 

Key Aspects of the Executive Order 

• Eliminates DEI Programs in Federal Agencies: All DEI-related programs within the federal government are immediately disbanded, and federal employees working in DEI roles have been placed on administrative leave. 

• Ends DEI Mandates for Federal Contractors: Companies that do business with the federal government are no longer required to adhere to previous DEI hiring and workplace policies. 

• Encourages Private Sector Changes: While private companies are not legally required to eliminate DEI programs, the order “encourages” a shift away from such initiatives, increasing scrutiny around corporate DEI efforts. 

How This Affects Businesses 

For Federal Contractors 

Businesses that hold federal contracts will need to certify that they do not implement DEI programs that could be perceived as discriminatory or preferential. This means a shift in compliance strategies, hiring policies, and employee training programs. The rescission of Executive Order 11246, which mandated affirmative action for federal contractors, also means fewer obligations related to diverse hiring practices. 

For Private Companies 

While not directly impacted, private companies may face increased political and legal scrutiny regarding DEI initiatives.

 

Impact on Employees 

For Federal Employees 

Those employed in DEI-specific roles within federal agencies face job uncertainty. Additionally, the removal of DEI initiatives may result in reduced workplace diversity programs, mentorship opportunities, and support systems for underrepresented employees. 

For Private Sector Employees 

The ripple effects of this order could influence corporate diversity initiatives, leading to potential changes

DEI programs may experience shifts in workplace culture, reduced access to professional development opportunities, and alterations in recruitment strategies.

 

What’s Next? 

This executive order marks a significant shift in federal workplace policies, with broad implications for businesses and employees alike. Companies should assess how these changes affect their workforce and legal compliance, particularly those with federal contracts. As the landscape evolves, organizations committed to inclusive workplaces may need to explore new ways to support a diverse workforce while staying aligned with regulatory changes. 

At Mosaic Consulting Group, we remain dedicated to helping businesses navigate these evolving policies and ensuring compliance with employment regulations. If you have any questions about how this executive order affects your organization, contact us today to learn more about how we can support your HR and compliance strategies. 

Mosaic’s Commitment to DEI 

Despite these federal changes, Mosaic Consulting Group is doubling down on our commitment to diversity, equity, and inclusion. We firmly believe that fostering an inclusive workplace benefits employees, businesses, and communities alike. Our DEI initiatives will remain strong as we continue to support equitable hiring practices, and company-wide inclusion efforts. Now, more than ever, we stand by our core values and will work with our clients to navigate these changes .