US Justice Department using fraud law to target companies on DEI programmes

Trump had said that the previous Biden administration expanded DEI programmes across government departments and described them as unfair and wasteful

The Trump administration has started investigations into how big US companies use diversity programmes while hiring and promoting employees, according to a Wall Street Journal report.

 

According to the report, companies such as Google and Verizon have been asked by the US Department of Justice to share documents and details about their workplace diversity policies.

 

The investigations are being carried out under the False Claims Act, a law that allows the US government to recover money lost due to fraud. Companies from multiple sectors, such as automobiles, medicines, defence, and utilities, are also under scrutiny, the report said. Some of these firms have met even Justice Department officials in person.

 

US tightens DEI crackdown

Along with immigration, the Trump administration has tightened its action against diversity, equity, and inclusion (DEI) programmes. Soon after taking office on January 20, US President Donald Trump signed an order to end all DEI programmes.

 

Trump said the previous Biden administration expanded DEI programmes across government departments and described them as unfair and wasteful. He said the government should treat everyone equally and spend public money only on national priorities.

 

According to the order, all federal departments were asked to close DEI, DEI Accessibility, and environmental justice offices. This includes ending diversity officers’ roles, equity action plans, and DEI-based hiring, training, promotions, and performance reviews.

 

Government hiring and evaluations will now be based only on merit, skills, performance, and hard work. Agencies have also been asked to provide details of DEI-related jobs, spending, grants, contracts, and training done since 2021.