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Trump administration directs all federal diversity, equity and inclusion staff be put on leave

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Trump administration directs all federal diversity, equity and inclusion staff be put on leave
News

News

Trump administration directs all federal diversity, equity and inclusion staff be put on leave

2025-01-22 23:27 Last Updated At:23:31

WASHINGTON (AP) — President Donald Trump's administration has moved to end affirmative action in federal contracting and directed that all federal diversity, equity and inclusion staff be put on paid leave and eventually be laid off.

The moves Tuesday follow an executive order Trump signed on his first day ordering a sweeping dismantling of the federal government’s diversity and inclusion programs that could touch on everything from anti-bias training to funding for minority farmers and homeowners. Trump has called the programs “discrimination” and insisted on restoring strictly “merit-based” hiring.

The executive order on affirmative action revokes an order issued by President Lyndon Johnson, and curtails DEI programs by federal contractors and grant recipients. It’s using one of the key tools utilized by the Biden administration to promote DEI programs across the private sector — pushing their use by federal contractors — to now eradicate them.

The Office of Personnel Management in a Tuesday memo directed agencies to place DEI office staffers on paid leave by 5 p.m. Wednesday and take down all public DEI-focused webpages by the same deadline. Several federal departments had removed the webpages even before the memorandum. Agencies must also cancel any DEI-related training and end any related contracts, and federal workers are being asked to report to Trump's Office of Personnel Management if they suspect any DEI-related program has been renamed to obfuscate its purpose within 10 days or face “adverse consequences.”

By Thursday, federal agencies are directed to compile a list of federal DEI offices and workers as of Election Day. By next Friday, they are expected to develop a plan to execute a “reduction-in-force action” against those federal workers.

The memo was first reported by CBS News.

The move comes after Monday's executive order accused former President Joe Biden of forcing “discrimination” programs into “virtually all aspects of the federal government” through “diversity, equity and inclusion” programs, known as DEI.

That step is the first salvo in an aggressive campaign to upend DEI efforts nationwide, including leveraging the Justice Department and other agencies to investigate private companies pursuing training and hiring practices that conservative critics consider discriminatory against non-minority groups such as white men.

The executive order picks up where Trump's first administration left off: One of Trump’s final acts during his first term was an executive order banning federal agency contractors and recipients of federal funding from conducting anti-bias training that addressed concepts like systemic racism. Biden promptly rescinded that order on his first day in office and issued a pair of executive orders — now rescinded — outlining a plan to promote DEI throughout the federal government.

While many changes may take months or even years to implement, Trump’s new anti-DEI agenda is more aggressive than his first and comes amid far more amenable terrain in the corporate world. Prominent companies from Walmart to Facebook have already scaled back or ended some of their diversity practices in response to Trump's election and conservative-backed lawsuits against them.

Here's a look at some of the policies and programs that Trump will aim to dismantle:

Trump's order will immediately gut Biden's wide-ranging effort to embed diversity and inclusion practices in the federal workforce, the nation's largest at about 2.4 million people.

Biden had mandated all agencies to develop a diversity plan, issue yearly progress reports, and contribute data for a government-wide dashboard to track demographic trends in hiring and promotions. The administration also set up a Chief Diversity Officers Council to oversee the implementation of the DEI plan. The government released its first DEI progress report in 2022 that included demographic data for the federal workforce, which is about 60% white and 55% male overall, and more than 75% white and more than 60% male at the senior executive level.

Trump's executive order will toss out equity plans developed by federal agencies and terminate any roles or offices dedicated to promoting diversity. It will include eliminating initiatives such as DEI-related training or diversity goals in performance reviews.

Trump's order paves the way for an aggressive but bureaucratically complicated overhaul of billions of dollars in federal spending that conservative activists claim unfairly carve out preference for racial minorities and women.

The order does not specify which programs it will target but mandates a government-wide review to ensure that contracts and grants are compliant with the Trump administration’s anti-DEI stance. It also proposes that the federal government settle ongoing lawsuits against federal programs that benefit historically underserved communities, including some that date back decades.

Trump’s executive order is a “seismic shift and a complete change in the focus and direction of the federal government,” said Dan Lennington, deputy council for the conservative Wisconsin Institute for Law & Liberty, which has pursued several lawsuits against federal programs. The institute recently released an influential report listing dozens of programs the Trump administration should consider dismantling, such as credits for minority farmers or emergency relief assistance for majority-Black neighborhoods.

He acknowledged that unwinding some entrenched programs may be difficult. For example, the Treasury Department implements housing and other assistance programs through block grants to states that have their own methods for implementing diversity criteria.

It's not clear whether the Trump administration will target every initiative that stemmed from Biden's DEI executive order.

For example, the Biden administration banned federal agencies from asking about an applicant's salary history when setting compensation, a practice many civil rights activists say perpetuates pay disparities for women and people of color.

It took three years for the Biden administration to issue the final regulations, and Trump would have to embark on a similar rule-making process, including a notice and comment period, to rescind it, said Chiraag Bains, former deputy director of the White House Domestic Policy Council under Biden and now a nonresident senior fellow with Brookings Metro.

Noreen Farrell, executive director of gender rights group Equal Rights Advocates, said that she was hopeful that the Trump administration “will not go out of its way to undo the rule,” which she said has proved popular in some state and cities that have enacted similar policies.

And Biden's DEI plan encompassed some initiatives with bipartisan support, said Bains. For example, he tasked the Chief Diversity Officers Executive Council with expanding federal employment opportunities for those with criminal records. That initiative stems from the Fair Chance Act, which Trump signed into law in 2019 and bans federal agencies and contractors from asking about an applicant’s criminal history before a conditional job offer is made.

Bains said that's what Biden's DEI policies were about: ensuring that the federal government was structured to include historically marginalized communities, not institute “reverse discrimination against white men.”

Despite the sweeping language of Trump's order, Farrell said, “the reality of implementing such massive structural changes is far more complex.”

"Federal agencies have deeply embedded policies and procedures that can’t simply be switched off overnight,” she added.

Will Scharf assists as President Donald Trump signs an executive order at an indoor Presidential Inauguration parade event in Washington, Monday, Jan. 20, 2025. (AP Photo/Susan Walsh)

Will Scharf assists as President Donald Trump signs an executive order at an indoor Presidential Inauguration parade event in Washington, Monday, Jan. 20, 2025. (AP Photo/Susan Walsh)

President Donald Trump signs an executive order as he attends an indoor Presidential Inauguration parade event at Capital One Arena, Monday, Jan. 20, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump signs an executive order as he attends an indoor Presidential Inauguration parade event at Capital One Arena, Monday, Jan. 20, 2025, in Washington. (AP Photo/Evan Vucci)

LOS ANGELES--(BUSINESS WIRE)--Feb 10, 2025--

Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF”, “Faraday Future”, or the “Company”), a California-based global shared intelligent electric mobility ecosystem company, today announced that FF China will ship two FX 6 prototype mules to its Los Angeles headquarters later this month from FF China. The shipment of the two test mules, both of which will be branded as “FX 6 Series” models, signifies a further step in the FX brand’s plan to bring affordable mass market AIEV’s to the marketplace. The shipment of the prototype mules also marks the official launch of the development and testing phase for this model in the U.S. and will allow continuous road testing on various systems.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250209770713/en/

Upon arrival in the U.S., the FX team will conduct compliance validation and in-depth testing on key aspects such as ADAS and autonomous driving, propulsion system, intelligent cabin, and overall user experience. The FX 6 models would eventually be assembled at FF’s facility in Hanford, CA, where the Company’s FF 91 2.0 is currently produced.

FX is advancing a new chapter in the Company’s strategy and will target the mass market segment with three planned models: an AI-MPV product—named the Super One, the FX 5, with a price target between $20,000-$30,000, and the FX 6, with a price target between $30,000-$50,000. FF plans to unveil further updates on the FX 6 series and the latest on the Company’s overall FX strategy in March.

“The shipment of the FX 6 camouflaged prototype mules signifies that our product development is moving forward into a more detailed and rigorous validation phase,” said Xiao (Max) Ma, Global CEO of FX. “The FX leadership team recently traveled to China, where we continued in our extensive discussions with potential partners and supply chain collaborators, achieving positive results that could solidify the FX 6 development process.”

ABOUT FARADAY FUTURE

Faraday Future is the pioneer of the Ultimate AI TechLuxury ultra spire market in the intelligent EV era, and the disruptor of the traditional ultra-luxury car civilization epitomized by Ferrari and Maybach. FF is not just an EV Company, but also a software-driven intelligent internet Company. Ultimately FF aims to become a User Company by offering a shared intelligent mobility ecosystem. FF remains dedicated to advancing electric vehicle technology to meet the evolving needs and preferences of users worldwide, driven by a pursuit of intelligent and AI-driven mobility.

FORWARD LOOKING STATEMENTS

This press release includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding a the production of the Super One, the FX 5 and the FX 6, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, among others: the Company’s ability to secure the necessary funding to execute on the FX strategy, which will be substantial; the Company's ability to secure necessary agreements to produce FX vehicles in the U.S., the Middle East, or elsewhere, none of which have been secured; the Company's ability to homologate any FX vehicle for sale in the U.S., the Middle East, or elsewhere; the Company's ability to secure necessary permits at its Hanford, CA production facility; the Company’s ability to continue as a going concern and improve its liquidity and financial position; the Company’s ability to pay its outstanding obligations; the Company's ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant barriers to growth it faces; the Company’s history of losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warranty claims; the success of other competing manufacturers; the performance and security of the Company’s vehicles; current and potential litigation involving the Company; the Company’s ability to receive funds from, satisfy the conditions precedent of and close on the various financings described elsewhere by the Company; the result of future financing efforts, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s indebtedness; the Company’s ability to cover future warranty claims; the Company’s ability to use its “at-the-market” program; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company's control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company's operations in China; the success of the Company's remedial measures taken in response to the Special Committee findings; the Company ’s dependence on its suppliers and contract manufacturer; the Company's ability to develop and protect its technologies; the Company's ability to protect against cybersecurity risks; and the ability of the Company to attract and retain employees, any adverse developments in existing legal proceedings or the initiation of new legal proceedings, and volatility of the Company’s stock price. You should carefully consider the foregoing factors, and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Form 10-K filed with the SEC on May 28, 2024, as amended on May 30, 2024, and June 24, 2024, as updated by the “Risk Factors” section of the Company’s first quarter 2024 Form 10-Q filed with the SEC on July 30, 2024, and other documents filed by the Company from time to time with the SEC.

The camouflaged FX 6 (Photo: Business Wire)

The camouflaged FX 6 (Photo: Business Wire)

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