
Legal community ‘stunned' by Trump's attacks on DEI, professor says
President Donald Trump's executive actions to attack diversity, equity and inclusion don't have the force of law, University of South Carolina law professor Kevin Brown emphasized, so it's been shocking to see the speed at which universities, nonprofits and even the business community have moved to end DEI initiatives.
Brown spoke to a packed room at the Urban League of Northwest Indiana's Diversity and Inclusion Symposium Thursday at Valparaiso University.
'We in the legal academy as well as the American Bar Association have really been stunned by the things that President Trump has done,' Brown said. 'He is not a king. We do not have a king; we have a president. And if you were doing something that was legal before Jan. 20, the president can't come and execute an executive order to make it illegal on Jan. 21.
'We've never really faced a president who has denied the rule of law to the extent that we've seen over the last six weeks,' he said.
Courts are slowly adjusting to executive orders, striking them down, Brown said.
'Simply put, the president can't change the law. The president's job is to enforce the law. Congress, the legislature, is the one that changes the law,' he said.
Brown offered a brief history of DEI initiatives and offered his opinion on major attacks as part of his threat assessment.
In the Civil War, the contribution of Black troops is overlooked, he said. There were 205,000 Black troops in the Union Army and Navy. More than 10% of the Union war dead were Black troops, with a casualty rate 40% higher than that of white troops.
About 75% of eligible Black men in the north fought for the Union, he added.
After the war, Congress passed a series of measures, including the 13th, 14th and 15th Amendments to the Constitution, aimed at giving Blacks the same rights as whites.
Those actions are now being used in litigation aimed at bolstering white people's claims that they deserve the same treatment as Blacks and other minorities and challenging Birthright citizenship.
A pivotal moment in attacks against DEI was the 1978 Regents of the University of California v. Bakke case. Justice Lewis F. Powell Jr.'s opinion said race should be allowed among multiple factors in determining college admissions, but only to achieve the educational benefits from a diverse student body.
In his opinion, Powell said, 'The clock of our liberties, however, cannot be turned back to 1868. It is far too late to argue that the guarantee of equal protection to all persons permits the recognition of special wards (Black people) entitled to a degree of protection greater than accorded others.'
A key outcome of the Bakke case was the new purpose of the equal protection clause was to protect the rights of individuals, not groups, Brown said.
'Justice Powell's opinion is really the cause of the attacks on DEI today, so to a certain extent I'm saying this was baked in as early as 1978,' he said.
Brown singled out five major attacks on DEI, critical race theory, and affirmative action in the past two years.
In the 2023 Students for Fair Admissions v. Harvard University case, an affirmative action challenge, the Supreme Court said considering an applicant's race as a factor for admissions is unconstitutional, overturning 60 years of legal precedent.
That ruling is relevant, Brown said, because the 1964 Civil Rights Act applied to not only governments but all recipients of federal funds.
A Feb. 14 'Dear Colleague' letter by the Department of Education purported to be an interpretation of the Harvard affirmative action decision and claimed some programs may appear neutral on their face but are, in fact, motivated by racial considerations, thus violating the law.
It was followed up by a second letter on Feb. 28 that retracted some of the claims of the original letter.
'If you actually took it that far, it would mean, of course, you couldn't have Black student unions. You couldn't have Black law student organizations. It would raise questions about Black studies programs. You would even have questions about historically Black colleges,' Brown said.
'Guess what else you couldn't have? Celebrations for St. Patrick's Day, because that's for the Irish. You certainly couldn't have Holocaust remembrance celebrations because that's for a specific racial group. I think once they begin to realize this, they were like 'OK, we don't really mean that, so forget all that',' he said, and that's why the second letter was sent.
The Department of Education seemed to realize it's prohibited by law from dealing with the content in school curricula, he said. That would violate First Amendment rights to free speech.
Anti-DEI executive orders issued Jan. 20 and Jan. 21 — Trump's first and second days in office — were aimed at recipients of federal funds. Trump wanted to discourage DEI efforts by corporations and others.
'You can't tell a private company what they can do with their own money so that was one of the reasons it was it was it was enjoined by the District Court,' Brown said. The other reason was that to ban DEI, it first has to be defined. Even DEI proponents have been struggling to define it, he said.
The biggest threat to DEI, Brown believes, is the Fearless Fund case. 'This is the one that scares me the most,' Brown said.
The Civil Rights Act of 1866, which is now 42 USC 1981, is a very important civil rights program, but the Fearless Fund case has reinterpreted it, he said. That law says all people shall have the same rights as white people in regard to legal proceedings.
The Fearless Fund program offered $20,000 grants to black women entrepreneurs in information technology because they are so underrepresented. It was shut down in September in response to a legal challenge by the American Alliance for Equal Rights, which wanted to eliminate the restriction that recipients had to be Black women.
Under that rationale, law firms that had diversity scholarships limited to underrepresented minorities wouldn't be allowed to restrict the qualifications to achieve the intended goal, Brown said.
Rather than advancing equality, attacks on DEI attempt to freeze the status quo for whites.
'Let me just remind you about the disparities,' Brown said. 'Black family income is about 66% of nonwhite Hispanic income. Black poverty rates are about double that of white non-Hispanics.'
The unemployment rate for Black people is typically twice that of white people. For at least the last 40 to 50 years, the rate of home ownership for Blacks has been about 44% compared to 72% for whites.
Look at demographics for Americans 18 and under, and it's clear the nation is changing. Whites in 2024 were 48.8% of that population, with Latino 25.9%, Blacks 13.8%, Asians 5.7%, and two or more races 5%.
Brown said the Supreme Court's recent decisions pulling back from expanding DEI programs will have an effect on society.
He suggests Black students focus on entrepreneurship to be able to make more money than some of the fields they might study in college. 'We're going to see government significantly pulling back from DEI programs,' so more private organizations will need to fill in the gaps, he said.
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May's Consumer Price Index (CPI) report showed inflation pressures eased on a monthly basis despite investor concerns that President Trump's tariffs would accelerate the pace of price increases. The Consumer Price Index (CPI) increased 0.1% on a monthly basis in May and 2.4% on an annual basis, a slight uptick from April's 2.3% gain. Yahoo Finance's Allie Canal reports: Read more here. I would keep an eye on consumer names off the news of a trade deal with China floated by President Trump this morning (see our prior post below). Seeing upticks premarket in heavily China-exposed retailers such as Nike (NKE), Walmart (WMT), Target (TGT), and Abercrombie & Fitch (ANF). The premarket gains here aren't mind-blowing in part because tariffs appear to still be in place. Trump posted on Truth Social: OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!" A variety of market observers quickly weighed in hours after Tuesday evening's unveiling to suggest that the deal may not have a lot of meat on the bones — but at least relations are no longer moving in the wrong direction. The talks perhaps underscored how unlikely a comprehensive trade deal is anytime soon, noted AGF Investments Greg Valliere, "but at least relations may not worsen as talks continue throughout the summer." Both sides promised additional talks in the weeks or months ahead, but none have yet been scheduled. Veronique de Rugy, a professor at the Mercatus Center at George Mason University, suggested the talks continued to show China's leverage. "China is hurting, yes—but they still hold the upper hand on critical resources, and they know how to use them." Any lessening of tensions — and freer flow — of these mineral resources in China would be a significant boost to the global economy with China holding outsized leverage in both the reserves and processing capacity of these key building blocks for everything from computers to electric vehicle batteries to medical devices. Likewise, the US offering concessions on export controls would be a significant move after years where successive US administrations have wielded these controls — especially around the design and manufacture of semiconductors — by saying they need to be tight on China for national security reasons. Read more here. May's Consumer Price Index (CPI) report will be released on Wednesday and its expected to show that prices rose a bit faster than in April. Yahoo Finance's Allie Canal breaks down what to look out for and how President Trump's tariffs are impacting what consumers are now paying for goods and services. Read more here. Now that the US-China trade truce is back on track, both sides are keen to ensure it stays that way. China's Vice Premier He Lifeng said both sides need to now 'show the spirit of good faith in abiding by their commitments and jointly safeguard the hard-won results of the dialogue.' Bloomberg News reports: Read more here. Reuters reports: Read more here. Despite the US-China trade truce resuming the pain from President Trump's tariffs remains in China, especially among small exporters. Reuters reports: Read more here. Japan warned Wednesday that tariffs threaten its economic growth, the government said in a monthly report. Reuters reports: Read more here. Reuters reports: Read more here. Reuters reports: Read more here. A federal appeals could said on Tuesday that President Trump's sweeping tariffs can continue for now. This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 'Now we can go forward to try to do positive trade, growing trade,' he said. As part of the deal, Beijing has promised to speed up shipments of rare earth metals, a crucial component for global auto and defense industries. Washington will ease export controls. This marks the first sign of movement on key issues. The proposal will now be presented to President Trump and China's Xi. Still, the discussions also did little to resolve a long-standing issue: China's trade surplus with the US. 'Markets will likely welcome the shift from confrontation to coordination,' said Charu Chanana, chief investment strategist at Saxo Markets. 'We're not out of the woods yet — it's up to Trump and Xi to approve and enforce the deal.' The meeting was set up after a phone call between the two leaders, following weeks of each side accusing the other of breaking the Geneva commitments. Both countries had used chips, rare earths, student visas and ethane as bargaining tools. Josef Gregory Mahoney, a professor at East China Normal University, said trust, not money, has been the biggest casualty of the trade war. 'We've heard a lot about frameworks,' he said. 'But the fundamental issue remains: Chips versus rare earths. Everything else is a peacock dance.' Bloomberg reports: Read more here. 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
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