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Trump's DEI Program Termination Impacts Hundreds of Federal Employees and Cancels Millions in Contracts

In a decisive move, President Donald Trump's executive order dismantling federal Diversity, Equity, and Inclusion (DEI) programs has resulted in 395 government employees being placed on paid leave, according to a senior administration official speaking to Fox News Digital. Furthermore, approximately $420 million in current and pending contracts, primarily related to DEI initiatives, have been canceled. This information was shared by the newly established Department of Government Efficiency (DOGE), led by Elon Musk.

Following President Trump's inauguration day signing of the order, the Office of Personnel Management (OPM) instructed agency and department heads to initiate the closure of all DEI offices. These closures were mandated to be completed by Wednesday, with affected employees placed on paid administrative leave. The long-term status of these employees remains uncertain.

Trump signing executive order

Acting OPM Director Charles Ezell issued a memo outlining the procedures for the DEI program shutdown. By January 22nd, agencies were required to notify all employees of the program's termination. Employees directly involved with DEI were to be informed of their paid leave status. Additionally, all DEI-related online presence, including websites and social media accounts, were to be deactivated. Existing contracts and training programs were canceled. The memo also requested employees to report any attempts to conceal DEI programs through ambiguous language.

A tight timeline was established for agencies to provide OPM with comprehensive lists of DEI offices, employees, and active contracts. This information was due by January 23rd. Furthermore, by January 24th, agencies were required to submit a plan for workforce reduction concerning DEI employees and a detailed account of any job description or contract modifications made since November 5, 2024, that might obscure their connection to DEI initiatives.

Department of Homeland Security Diversity equity inclusion

This executive order was one of many signed by President Trump on his first day, including directives on gender recognition and withdrawal from the Paris Climate Agreement. Two further executive actions related to DEI were also issued, aiming to eliminate race and sex-based preferences in hiring and education, and rescinding a Biden-era policy prioritizing DEI hiring at the Federal Aviation Administration.

Elon Musk at Congress

President Trump's executive order effectively reverses President Biden's initiative, "Advancing Racial Equity and Support for Underserved Communities Through the Federal Government," which Biden signed upon entering office.