
Trump's DOJ rewrites inclusion rules for grant programs
Why it matters: The move follows the administration's dramatic change to the government's interpretation of Civil Rights-era laws to focus on " anti-white racism" rather than discrimination against people of color.
Driving the news: The U.S. Department of Justice on Wednesday released new guidelines for recipients of federal funding and directed them not to be involved in Diversity, Equity, and Inclusion ("DEI") programs.
The guidelines say that federal antidiscrimination laws apply to programs or initiatives like DEI since they involve "discriminatory practices."
The department said programs and activities must comply with federal law and not "discriminate on the basis of race, color, national origin, sex, religion, or other protected characteristics — no matter the program's labels, objectives, or intentions."
State of play: The guidelines could have sweeping effects, possibly forcing universities to end ethnic studies programs, media companies to stop paying for staffers to attend journalists of color conferences or nonprofits to cease programs studying health disparities.
The new rules will almost certainly face legal challenges.
What they're saying: "This Department of Justice will not stand by while recipients of federal funds engage in illegal discrimination," said Attorney General Pamela Bondi said in a statement.
"This guidance will ensure we are serving the American people and not ideological agendas."
Reality check: Companies, media outlets, universities and nonprofits have adopted various forms of DEI programs to combat systemic discrimination in hiring and services for decades.
The programs have been credited with diversifying those entities and fighting inequality.
However, conservatives on the far right have for years said those programs discriminate against white Americans.
Zoom out: Under the new guidelines, the DOJ says recipients can face "significant legal risks" if they're involved in DEI programs.
"The use of terms such as 'DEI,' 'Equity,' or other euphemistic terms does not excuse unlawful discrimination or absolve parties from scrutiny regarding potential violations," the department said.
The department also advised against using " race, sex, or other protected characteristics for employment, program participation, resource allocation, or other similar activities."
The DOJ also said terms like "cultural competence," "lived experience," and "geographic targeting" that function as proxies for protected characteristics violate federal law.
Context: Since taking office, Trump has attempted to reverse many of the gains made during the Civil Rights Movement and unravel the late President Lyndon B. Johnson's civil rights legacy from six decades ago.
Within hours of taking office, Trump revoked LBJ's 1965 executive order mandating "equal opportunity" for people of color and women in the recruitment, hiring and training of federal contractors.
Trump's new order triggered sweeping changes to anti-discrimination rules — including a little-noticed memo stating that the federal government no longer would unequivocally prohibit contractors from operating "segregated facilities."
The Trump administration has faced criticism after it purged — and then restored — articles on federal agency websites about Jackie Robinson, Harriet Tubman and WWII-era Navajo Code Talkers.
Between the lines: The new guideliness fulfill a promise that Trump campaign allies told Axios about before the election: that the president would push to eliminate or upend programs in government and corporate America that are designed to counter racism against Black Americans and other people of color.
A central vehicle for the effort has been America First Legal, founded by Trump aide Stephen Miller.
America First cited the Civil Rights Act of 1964 in a February 2024 in a lawsuit against CBS and Paramount Global for what the group argued was discrimination against a white, straight man who was a writer for the show "Seal Team" in 2017.
The Heritage Foundation's "Project 2025" outlined how Trump could reverse some of LBJ's initiatives, including his order ensuring equal opportunity in federal contracting.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
Shareholder warns Apple's $100 billion investment is more optics than impact
Apple (AAPL) is courting President Trump with a fresh $100 billion manufacturing push, but it's questionable whether the move will deliver real gains for shareholders. "I'd be very careful not to confuse good politics with what is actually going to happen in the operations of this business," Ann Berry, founder of Threadneedle and an Apple shareholder, said on Yahoo Finance's Opening Bid. On Wednesday, the tech giant announced a $100 billion commitment to US manufacturing. CEO Tim Cook was in the White House for the unveiling, where President Trump also announced a 100% tariff on semiconductors produced overseas unless the company commits to building in the US. "The good news for companies like Apple is, if you're building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge," Trump said. Read more: The latest news and updates on Trump's tariffs Apple's shares rose by 3% on Thursday, although the stock has traded 12% lower year to date as investors remain concerned the company is falling behind in the AI race. Berry noted that Cook's political engagement benefits shareholders in that it's "fostering relationships with powerful decision-makers." But investors shouldn't confuse Cook's political goodwill with real impact. For investors, the key question is whether Apple's investment will meaningfully reduce its tariff risk. While Apple has moved some iPhone assembly to India and explored alternatives like Vietnam, the company's semiconductor packaging and most of its core hardware production still rely on Chinese factories. Berry emphasized that building out domestic capacity, especially at Apple's scale, will take years. The timeline to secure permits, construct factories, hire and train workers, and begin mass production likely exceeds the next three and a half years, she noted. Additionally, tariffs could shift within that period. "I highly doubt that Apple is going to start breaking ground on as much new kind of land," Berry said, which means it may not meaningfully change Apple's near-term supply chain exposure. Despite the cautious outlook, some on Wall Street cheered the news. Bank of America analyst Wamsi Mohan raised the firm's price target from $213 to $250, citing the upside potential if the company is exempt from tariffs. Mohan suggests that if the US government grants Apple an exemption, the company might reduce its projected fourth quarter headwinds of $1.1 billion, although the precise details remain undefined. This action could also bolster confidence in Apple's gross margin expansion, which Bank of America anticipates will reach 50%. The firm also notes that if rivals like Samsung (SSNLF) or Google (GOOG) face steep import tariffs while Apple remains exempt, it could tip US market share further in Apple's favor, potentially boosting iPhone sales. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at
Yahoo
2 minutes ago
- Yahoo
Why major chip stocks are in the green, despite Trump's 100% tariff threat
President Donald Trump has announced 100% tariffs on imported semiconductor chips, stunning markets. But major Asian chip stocks rallied as firms with US investments are exempt from the tariffs. US tech market gains as investors see relief from potential tariff impacts. President Donald Trump stunned markets Wednesday by announcing 100% tariffs on imported semiconductor chips — but major chip stocks rallied. Taiwanese chip giant TSMC's stock closed 4.9% higher. In South Korea, Samsung Electronics ended 2.5% higher while SK Hynix reversed losses of over 3% in early trade to close 1.4% up. The rebound came as investors digested news that companies investing in US manufacturing would be exempt. TSMC already operates plants in the US, and both South Korean firms have committed to major US investments. The Trump administration has not released specifics on the tariffs, including when they could come. "The good news for companies like Apple is if you're building in the United States or have committed to build, without question, in the United States, there will be no charge," Trump said at the White House where the tech giant announced a fresh $100 billion investment plan. Officials from Taiwan and South Korea later confirmed that their local chipmakers with US ties would be exempt from the full 100% tariff. The US tech market already rallied overnight, with Apple closing 5.1% higher. The Nasdaq 100 closed 1.3% higher while the S&P 500 gained 0.7%. The development "fits Trump's approach of 'open high, negotiate down,'" wrote Phelix Lee, a senior equity analyst at Morningstar, on Thursday. Lee added that the final tariff rate for chipmakers could be closer to Trump's so-called reciprocal tariffs, which would limit inflation, particularly in consumer goods that rely heavily on chips. Trump has already exempted tech products, including smartphones, computers, and chipmaking gear, from tariffs against trading partners that kicked in on Thursday. Despite broader economic uncertainty and tariff tensions, markets have continued to push higher in recent months. The market rally may just reflect "sheer relief, from averting the worst, dressed up as 'risk on,'" wrote Vishnu Varathan, Mizuho's macro research head for Asia excluding Japan, on Thursday. Varathan added that some industries and trade partners are simply too important to be hit with prohibitive tariffs. "To be clear, the specific case of 100% tariffs on semiconductors ought to decimate the US tech sector, given US share of global chip production is now disproportionately small, underpinning huge reliance on imports of chips," he wrote. That dependence could give trade partners leverage. China, for example, could use its dominance in rare earths as a bargaining chip with the Trump administration, he added. On Tuesday, Trump told CNBC that the US is "getting very close to a deal" with China to extend the two countries' trade truce. "We're getting along with China very well," he told the network. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 minutes ago
- Yahoo
Minnesota lawmaker shooting suspect pleads not guilty in federal court
Vance Boelter, who is accused of stalking and shooting two Minnesota lawmakers and their spouses in June, pleaded not guilty in federal court on Thursday. Boelter's attorney entered the plea on his behalf, according to The Associated Press. Boelter, who faces murder, stalking and firearms charges, spoke very briefly in court, thanking the judge and saying he understood the charges, the AP said. MORE: Fort Stewart soldiers 'absolutely saved lives' by jumping in to stop gunman: Army secretary Boelter is suspected of shooting and killing Minnesota state Rep. Melissa Hortman and her husband, Mark, at their home in Brooklyn Park and shooting and wounding state Sen. John Hoffman and his wife, Yvette, at their house in nearby Champlin in the early hours of June 14, authorities said. Boelter allegedly showed up to their doors, impersonating a police officer and wearing a realistic-looking latex mask to carry out his "political assassinations," prosecutors said. Investigators recovered a list of about 45 elected officials in notebooks in his car, according to prosecutors. Two other lawmakers were spared the night of the shootings, officials said. One was not home, while a police officer checking the homes of other local politicians scared off Boelter from another location. Boelter's court appearance came as the Minnesota State Capitol on Wednesday implemented new safety measures, including fewer public entrances and an increased security presence. Sen. John Hoffman, who suffered from multiple gunshot wounds, spoke out this week, telling the National Conference of State Legislatures that the shooting "was awful and tragic and will impact me and my family forever," according to MPR News. "But as a Minnesotan and as an American ... we can't let the evil of the night win and we must redouble our efforts and reclaim the reason we are all public servants," Hoffman said. ABC News' Ahmad Hemingway contributed to this report.