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The Change in DEI Headwinds – What Contractors Should be Watching
Tuesday, December 3, 2024

A bill seeking to eliminate Diversity, Equity, and Inclusion practices passed out of the House Oversight Committee on a 23-17 vote. The Dismantle DEI Act, led by Congressman Michael Cloud (R-TX), outlines an effort to end all DEI-related activities within federal agencies, prevent DEI mandates in federal contracting and grants, and ensure that federal accreditation bodies prioritize merit and qualifications.

The Biden administration allocated over $16 million for federal diversity training and requested an additional $83 million for DEI programs at the State Department. The Dismantle DEI Act seeks to eliminate these initiatives and heighten accountability in federal spending.

In his opening remarks on the Dismantle DEI Act, Rep. Cloud referenced a report from Do No Harm, concluding that the Biden administration pursued over 500 DEI-related actions. Rep. Cloud expresses his position that these initiatives divide the nation and waste resources. He concluded by urging his colleagues to support the bill, emphasizing ideals of equality, merit, and justice.

Federal contractors should continue to track this bill as it heads to the House floor in order to prepare for the possible changes in compliance requirements, which would transform hiring and placement protocols. This is one of the first in what will be a wave of potential changes facing the contractor community. Federal contractors should work closely with outside counsel and monitor developments in this landscape.

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