DC businesses, organizations question potential ripple effect of Trump's anti-DEI order

WASHINGTON - As agencies are ordered to place federal employees in diversity, equity and inclusion roles on paid leave, some question how this could have a ripple effect on local businesses and organizations.

Marc Morial, president of the National Urban League, hosted a roundtable Wednesday on the "assault on DEI" and planned dismantling of federal initiatives. The National Urban League is a civil rights and urban advocacy organization operating in 92 cities, including Washington, D.C.

"The DMV or greater metropolitan Washington is stronger, more prosperous, more equitable. Look at the political leadership of this region. Men, women, Black, white, people of both political parties. It’s diverse. It didn’t look like that 60 years ago," Morial said.

Karoline Leavitt, White House Press Secretary for President Trump, confirmed on X that a memo was issued Tuesday to department and agency heads setting a deadline of no later than 5 p.m. ET Wednesday to inform the employees that they will be put on paid administrative leave, as those agencies prepare to close all DEI-related offices and programs.

The memo also states federal agencies are to submit a written plan by Jan. 31 for dismissing the employees. It was sent one day after President Trump signed an executive order to end "radical wasteful DEI programs" within the federal government.

DEI in the workplace can be a mix of employee training and recruitment practices, Morial said.

READ MORE: What is DEI and what do the employees do?

"That effort to distort it into some sort of favoritism program is the biggest conception. It’s not, it never has been. Quotas are illegal. Measuring outcomes is not a quota," he said. "It [DEI] says make sure that your resume gets looked at. Don’t exclude your resume because you may not be a white male. Don’t not consider your qualifications, because you’re not a white man. DEI says it’s important when we recruit for jobs, we don’t recruit from just a handful of schools, that we recruit from schools that have African-Americans, Latinos, Asians, and others."

Critics of DEI have called it unnecessary and discriminatory, claiming some groups are at a disadvantage, particularly White Americans. FOX News reports, some conservative groups have filed lawsuits targeting workplace initiatives like diversity programs and hiring practices that prioritize historically marginalized groups.

Recently, major corporations including Walmart, John Deere, and Ford Motor Company have confirmed plans to roll back on DEI policies.

One man told FOX 5 that he didn't mind if corporations do away with DEI programs.

"I think you should go on merit, rather than who you are, what race you are, what religion you are, what sex you are. I think you should go on merit," he said. "I think in my experiences, I think the more you go on merit, rather than identity, the best off everyone is."

Some, however, have concerns.

"I feel like it’s a sign that our country is moving backwards instead of forwards. In the past, I felt like we were pretty progressive as a country," one woman said. "Now I feel like companies rolling back on DEI, it’s kind of concerning. For me, personally. I don’t like the direction it’s going."

It’s unclear how many federal DEI employees are impacted by the order.

List of companies: https://www.livenowfox.com/news/companies-roll-back-dei-policies