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🚨 Is DEI illegal in the USA?

No, but it is under coordinated attack. Here’s what you need to know. 👇🏾


In 2025, the political winds shifted. Former President Trump, on day one of his return to office, signed Executive Order 14151, which dismantled the DEI infrastructure across federal agencies.



This order:

•Eliminates DEIA offices and roles in government

•Cuts funding for equity-related grants and contracts

•Requires federal contractors to prove they do not run DEIA programmes “in conflict” with federal law

•Pressures private sector organisations, through veiled legal threats, to scale back or abandon inclusion efforts


Let’s be clear, this executive order does not make DEI illegal. Civil rights protections are still in place. But it sends a clear political message, and the chilling effect is real.

And this didn’t happen in isolation.


⚖️ In 2023, the U.S. Supreme Court ruled against affirmative action in higher education, effectively banning race-conscious admissions at Harvard and the University of North Carolina.


While that ruling applies specifically to college admissions, its legal logic that race-based considerations violate the Equal Protection Clause is now being used to attack DEI in other sectors.


Lawsuits have since been filed against companies like HelloFresh, Morgan Stanley, and Starbucks, targeting employee resource groups, leadership programmes, and supplier diversity initiatives. The aim is to equate inclusion with discrimination.


🧠 So where does this leave DEI?

🔥In government, DEI is being dismantled.

🔥In the courts, DEI is being challenged.

🔥But in corporate America, DEI is being defended


In 2025, shareholders at 22 of the largest U.S. corporations including Alphabet (GoogleAppleWalmartThe Walt Disney CompanyLevis’Store, and Costco Wholesale) rejected proposals to cut or eliminate DEI.


On June 6th, 2025 Alphabet, shareholders voted down two proposals to sever ties with the Human Rights Campaign, a leading LGBTQ+ advocacy group.


At Disney, only 1% of shareholders supported a proposal to withdraw from DEI partnerships. These votes reflect more than principle, they reflect priorities.


Inclusive companies perform better. They attract talent, retain customers, and navigate risk more effectively. DEI is not just the right thing to do, it is the smart thing to do.


👉🏾 So no, DEI is not illegal. But yes, it is under siege.

Whether you are in the UK, the U.S., or the EU, these developments matter. What happens in Washington does not stay in Washington. The legal precedent, the political noise, the investor sentiment, all of it influences the global stage.


The question is not whether DEI will face resistance. The question is whether we are ready to defend it, refine it, and keep it relevant for a changing world.


Does this post make things clearer for you now?


Kaleida is here to help you win.

Stay informed, be bold, and seize the opportunities this Act brings.



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Founded in 2019, Kaleida International is a B2B marketplace for Tenders connecting Buyers to Suppliers, and Diverse Suppliers. With a focus on helping the Chief Procurement Office achieve its ESG goals, and alerting companies to new revenue opportunities, Kaleida's fully-inclusive platform helps Buyers find, identify and assess Diverse Suppliers they can invite to Tender.


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