The newly established Department of Government Efficiency (DOGE) has initiated a sweeping cost-cutting measure targeting Diversity, Equity, and Inclusion (DEI) contracts across federal agencies. As of Friday, DOGE reported the cancellation of 104 DEI-related contracts, resulting in over $1 billion in taxpayer savings. This represents a significant increase from the 85 contracts identified just two days prior, highlighting the rapid pace of these cancellations. The initiative aligns with President Trump’s executive order aimed at eliminating what he terms “illegal discrimination” and restoring a “merit-based” approach to government operations. The administration views these DEI programs as wasteful and divisive, preferring to prioritize core agency missions.
The Department of the Treasury led the way in contract cancellations, eliminating 21 contracts and saving over $25 million. The Department of Health and Human Services followed closely, canceling 15 contracts totaling nearly $29 million. While the Office of Personnel Management canceled only three contracts, the associated savings were substantial, reaching almost $500 million, averaging approximately $165 million per contract. Other agencies with significant cancellations include the Department of Agriculture (11 contracts), and both the U.S. Agency for International Development (USAID) and the Department of Homeland Security (7 contracts each).
The Department of Veterans Affairs (VA) also took decisive action, placing 60 employees solely dedicated to DEI roles on administrative leave. VA spokesperson Morgan Ackley emphasized the administration’s focus on providing optimal care and benefits to veterans and their families, asserting that the shift away from DEI initiatives reflects a return to the VA’s core mission. This move underscores the administration’s commitment to streamlining operations and redirecting resources towards what they consider essential services.
These actions have drawn sharp criticism from a coalition of Democratic state attorneys general, who argue that the dismantling of DEI programs has nothing to do with combating discrimination but rather represents an attack on efforts to promote fairness and equal opportunity. Led by Rhode Island Attorney General Peter Neronha, the group issued a joint statement condemning the executive order and characterizing it as “unnecessary and disingenuous.” They contend that DEI initiatives are essential for ensuring fair opportunities for all, maximizing employee contributions, and enabling organizations to fulfill their missions effectively. They expressed a willingness to collaborate with the administration on addressing discrimination through established civil rights laws, but reject the current approach.
The attorneys general argue that DEI programs do not undermine merit-based systems but rather complement them by creating a more inclusive environment. They challenge the administration’s assertion that these programs lead to the hiring of unqualified candidates based on race or sex, stating that their purpose is to ensure a level playing field and maximize the potential of a diverse workforce. They view the administration’s actions as a setback for diversity and inclusion efforts, potentially exacerbating existing inequalities.
In Congress, bipartisan support for government efficiency efforts is gaining momentum. Representative Aaron Bean (R-FL) founded the Congressional DOGE Caucus, focusing on curbing government waste and abuse. Senator Joni Ernst (R-IA) has been advocating for measures to increase federal employee return-to-work rates and sell off underutilized federal office space. These initiatives reflect a broader push for fiscal responsibility and streamlining government operations, though the specific targeting of DEI programs remains a contentious issue. The debate between proponents of DEI and those who view these programs as wasteful and divisive continues, with significant implications for the future of diversity and inclusion efforts across the federal government.
