President Donald Trump’s election was welcomed by Wall Street, as businesses expected significant deregulation efforts. However, the Trump administration appears to be using this leverage to push companies to abandon their diversity, equity, and inclusion (DEI) policies.
The Federal Communications Commission (FCC), led by Chairman Brendan Carr, has threatened to block mergers involving media companies that promote DEI policies. This move is unprecedented, as federal regulators have never before tried to block mergers due to human resource policies.
Carr’s statement indicates that he believes DEI programs are not in line with the “public interest” and may be considered “invidious forms of discrimination.” He has also met with right-wing activist Robby Starbuck, who has launched campaigns against companies promoting DEI policies.
Many companies have already rolled back or changed their DEI policies due to pressure from the Trump administration. The uncertainty created by Carr’s message is causing confusion among businesses, as they struggle to determine what constitutes “illegal” DEI and how to avoid potential scrutiny.
Legal experts say that Carr’s actions are overstepping his authority and creating a chilling effect on companies. Tom Wheeler, former FCC chair, has criticized Carr for exercising “rogue power” and failing to define what he means by “invidious forms of discrimination.”
The Trump administration’s push against DEI policies is part of its broader effort to dismantle diversity initiatives in the federal government and beyond. Companies are caught between pursuing these goals and avoiding scrutiny from the administration, leading to significant pressure to change or abandon their policies.
Source: https://edition.cnn.com/2025/03/26/business/dei-fcc-media/index.html