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Dentons

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DOJ Puts Federal Contractors on Notice: The IBM Settlement and the Future of “Illegal DEI” Enforcement

In early 2025, President Trump signaled his intent to end diversity, equity, and inclusion (“DEI”) programs in the federal government. As part of that policy, President Trump signed Executive Order (“EO”) 14173, which took aim at “illegal DEI” in federal contracting. Since then, contractors have sought to understand what constitutes illegal DEI. The Department of Justice (“DOJ”) recently provided the first concrete example of practices that it alleges to be illegal DEI.