By Ashlee Banks
Special to the AFRO
In a move that systematically dismantles decades of civil rights-era procurement philosophy, President Donald Trump signed an Executive Order on March 26, effectively purging “diversity, equity and inclusion” (DEI) requirements from the federal contracting landscape.
AP/Images Mariam Zuhaib
While the administration frames the move as a return to “merit-based” efficiency, the policy shift marks a seismic and potentially precarious era for Black and Brown Americans who have long relied on federal diversity mandates to break into the $700 billion federal marketplace.
For over half a century, the federal government, which is the world’s largest buyer of goods and services, used its purchasing power to level a playing field historically tilted against minority-owned firms. This new Order, however, treats those very efforts as “racially discriminatory.”
House Minority House Speaker Hakeem Jeffries (D-N.Y.-08) told the AFRO, that diversity, equity and inclusion is about “economic opportunity for everyone.”
“No president in the United States of America can change the Constitution or change law like the 1964 Civil Rights Act by way of example, through executive action or executive order,” stated the New York lawmaker.
U.S. Rep. Glenn Ivey (D-Md.-04) told the AFRO if this order is implemented, it will have a disproportionate impact on marginalized communities.
“Contrats are going to be available under the traditional approach and it will be damaging to these companies owned by minorities, as they will not be allowed to bid for contracts that they used to be able to bid for,” said the congressman.
If this executive order is allowed to stay in place, the impact on Black and Brown communities is expected to be twofold, a reduction in corporate diversity within the private sector and a potential “chilling effect” on minority-owned businesses (MBEs) seeking subcontracts.
Jeffries and Ivey stated that civil rights litigators have been challenging orders like this one and given precedent law, the order will likely be dismantled.
Ivey told the AFRO that he believes this order doesn’t have a chance of surviving litigation.
“Democracy Forward and other groups have been filing lawsuits and I think they’ll file on this one too,” said the Democratic congressman. “We’ve had some court cases on previous executive orders that have ruled in our favor and I think they may win on this one as well.”
At this time, the executive order authorizes agencies to “cancel, terminate, or suspend” contracts for any DEI involvement and directs the Attorney General to prioritize False Claims Act charges against those who violate the ban. This turns the legal tide, where contractors once feared lawsuits for lack of diversity, they now face federal prosecution for maintaining it.
For the Black entrepreneur or the Latino-led startup, the “merit-only” mandate ignores the systemic barriers, such as lack of access to capital and historical exclusion from federal networks, that DEI programs were designed to circumvent.
However, the White House argues that these programs “artificially restrict the labor pool” and drive up costs for taxpayers.
“We will terminate every diversity, equity, and inclusion program across the entire Federal Government,” Trump stated, doubling down on a platform that views race-conscious policy as an affront to equal treatment.
However, critics and economic advocates for minority communities warn of a regression.
Without diversity, the federal government risks returning to a system where contracts naturally flow to the largest, most established firms, which are overwhelmingly white-owned.
Jeffries told the AFRO, that executive orders like this one are designed to help the wealthy.
“The problem that seems to be unfolding, is that there are some in this country who want an America of the billionaires, by the billionaires and for the billionaires,” said the House Minority Leader. “Not for working class Americans, middle class Americans or everyday Americans.”
“DEI is about economic opportunity for everyone, even if you’re not wealthy or well connected, these are values that everybody in this country should embrace,” he added.