When Donald Trump became President of the United States for the second time in January 2025, he launched his first major attack on DEI on his very first day. DEI stands for Diversity, Equity, and Inclusion.
For the past 10 years, these three words have been at the forefront of every major American company, university, and government office. However, in his first executive order, Trump mandated that every company contracting with the government must provide in writing that it does not run any program that promotes DEI.
Following this, within 48 hours, employees responsible for DEI work in all government departments were placed on leave. A memo issued stating that all DEI offices would be closed within 60 days. The White House's new Department of Government Efficiency claimed to have canceled DEI-related contracts worth approximately $1 billion (Rs 8,000 crore).
Trump argued that these programs divide Americans along racial lines, waste tax money, and create shameful discrimination. He also repealed a landmark law enacted by President Lyndon Johnson in 1965 that prevented government contractors from discriminating.
The fear was so intense that private companies began shutting down their own programs. Major companies like McDonald's, Facebook, Walmart, Target, Ford, and Harley-Davidson withdrew their diversity goals and training. They feared that if they didn't comply, they would lose billions of dollars in government contracts and the Justice Department would launch investigations against them.
In March 2025, Trump signed another order requiring all government agencies to ban DEI practices and tasking the Justice Department with expediting investigations. One contractor even reported that the government asked them to stop collecting gender and race data.
Now, the story has taken a new turn.
Now, in September 2026, nearly 20 months later, a surprising report has emerged. A new study by USA Today says that DEI, the very thing Trump had dismantled, is making a comeback with support from both parties.
Clark, a management professor at Bentley University, led the study. According to her, support for DEI has increased by 6, 12, and 11 points compared to last year, 2025. This increase is not only seen among Democrats, but also among Republicans and independents.
Professor Clark says this should be a signal to managers to listen to their internal employees about what actually works for their company, rather than following external politics. This suggests that senior company leaders are eliminating DEI under political pressure, but internal employees want it back.
DEI is still alive behind the scenes.
The survey's biggest finding is that many companies have merely abandoned DEI for show. More than half of employees said their company has only signaled a DEI shutdown, but only a third have actually reduced their efforts.
DEI advocates have found a new way to weather this storm. The same work is now being done under a new name. Mentorship, coaching, job training, fellowships, and internships that were previously limited to specific groups, such as Black, Hispanic, or women, are now open to everyone.
What used to be called diversity programs are now being called belonging programs or all-employee development programs. The work remains the same, just the language has been changed to avoid legal hassles. Therefore, half of employees surveyed want inclusion efforts to benefit all employees, while a third still want the needs of vulnerable individuals to be prioritized.
Republicans Still Skeptical
Yes, all is not well. Republicans remain skeptical of DEI. According to a survey, 59% of Republicans believe that the claim that diverse companies generate more profits is completely false. And 54% believe that the claim that they create more innovative products is also false.
Americans' trust in companies' DEI work is also low. Only a third of Americans rate their DEI work as good or very good. This also varies by party. While 50% of Republicans give companies good marks, this number falls to 33% among independents and only 25% among Democrats. This means that Democrats feel that companies are not doing real work.
Trump's Next Step and Defeat in Court
The Trump administration continues its fight against DEI. On September 3, 2026, the Treasury Department enacted a new rule. According to this rule, any private college that provides students with racially biased benefits, such as admissions, scholarships, or accommodations, will lose its tax exemption status. This rule will take effect after May 2027.
But Trump isn't having much success in court. In February 2025, a federal court dismissed the Missouri Attorney General's case against Starbucks. This week, the 10th Circuit Court also dismissed a case filed by a white officer who alleged that the Colorado Department of Education's DEI training created a discriminatory environment for him.
Legal experts say Trump's action has changed the entire mindset. Jennifer Cormier, a lawyer at Ropes & Gray, says the order suggests that DEI practices are illegal, even though there's no basis for it in law.
What will happen next?
Study author Glasgow says that companies eliminated DEI because of excessive pressure from the current government, not for legal reasons. This means that the political environment is a bigger driver than the legal environment.
Experts believe that DEI will remain under pressure for the next two and a half years, until the end of Trump's term. However, the atmosphere on the ground is changing. Young employees, especially Gen Z and Millennials, are now openly saying they want to work in a place with diversity and inclusivity.
So the final story is that Trump claimed to eliminate DEI on paper, by closing offices and terminating contracts, but removing it from the hearts of people and from the culture within companies is not so easy. The same DEI that was supposed to be eliminated is now coming back with a new form, a new name, and renewed support from both parties. This shows the huge gap between what employees want and what leaders do.
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