As the Trump administration reshapes workplace policies, corporate diversity, equity, and inclusion (DEI) programs are undergoing significant changes, USA Today reports.
The administration’s push for merit-based hiring has prompted many major companies to scale back DEI initiatives, reflecting a broader shift in corporate America.
In the wake of George Floyd’s murder in 2020, businesses across the country launched ambitious diversity initiatives, with the U.S. Chamber of Commerce spearheading an Equality of Opportunity Initiative to address racial disparities. At the time, corporate leaders embraced diversity programs as part of a nationwide reckoning on racial equity.
However, as President Donald Trump took office, many of these initiatives were either quietly scaled back or phased out altogether. The Chamber of Commerce’s webpage dedicated to the initiative was recently removed, signaling a shift in corporate priorities.
President Trump has made it clear that he views race-based hiring and promotion practices as discriminatory, arguing that qualifications and skills—not identity—should determine job opportunities. His administration has taken decisive action to eliminate race-based hiring practices in federal agencies and encouraged private companies to move away from DEI-driven policies.
“We fundamentally believe that all Americans should have the opportunity to earn their success, rise on their own merits, and live the American dream,” the Chamber of Commerce stated in 2020.
Today, the Trump administration is emphasizing this very principle by ensuring that hiring and promotions are based on ability rather than demographic quotas.
The shift has led some of the nation’s largest corporations to reconsider their diversity programs. A recent analysis found that the number of Black executives in S&P 100 companies grew by nearly 27% between 2020 and 2022. However, after the Supreme Court’s 2023 ruling against race-based college admissions, there was a 3% decline in Black executives—twice the rate of decline for white executives.
Critics argue that some of these programs were ineffective and even legally risky. For example, unconscious bias training and public pledges to fill leadership positions with specific demographic groups faced scrutiny. As companies reassess their approach, the focus is shifting toward fostering inclusive workplaces without implementing race-based hiring mandates.
Supporters of Trump’s policies believe that shifting away from DEI programs will benefit companies in the long run by fostering competition and rewarding excellence. They argue that prioritizing merit over identity will lead to stronger business performance and innovation.
Treasury Secretary Scott Bessent reinforced this perspective, stating:
“We have seen what I would call this orgiastic government spending with the past administration, and we’re going to bring that down.”
Similarly, President Trump recently urged Apple to move away from diversity-driven hiring policies, emphasizing the need for a purely meritocratic approach.
While some businesses continue to champion DEI initiatives, others are stepping back to avoid potential legal risks and align with the administration’s policies. The debate over diversity in corporate leadership is far from over, but the Trump administration’s push for merit-based hiring has undoubtedly changed the landscape.
