Business
America’s Largest And Most Expensive DEI Program Is About To Go Up In Flames
The flag of the University of Michigan
From the Daily Caller News Foundation
By Jaryn Crouson
The University of Michigan’s (UM) multi-million dollar diversity, equity and inclusion (DEI) program may soon be dismantled.
The university’s board of regents has reportedly asked UM president Santa Ono “to defund or restructure” the DEI office amid growing criticism and public pressure, according to emails shared on X. The board is expected to vote on the matter on Dec. 5.
“I write to share information with you about impending threats to the University of Michigan’s DEI programming and core values of diversity, equity, and inclusion,” Rebekah Modrak, faculty senate chair, wrote in an email to faculty senate members. “It has been confirmed by multiple sources that the Regents met earlier this month in a private meeting with a small subgroup of central leadership members, and among the topics discussed was the future of DEI at UM, including the possibility of defunding DEI in the next fiscal year.”
Calls for the university’s DEI program to come to a close surfaced after The New York Times exposed its failures and the vast amount of money being thrown at it.
“In recent years, as D.E.I. programs came under withering attack, Michigan has only doubled down on D.E.I., holding itself out as a model for other schools,” the NYT wrote in an October article. “By one estimate, the university has built the largest D.E.I. bureaucracy of any big public university. But an examination by The Times found that Michigan’s expansive — and expensive — D.E.I. program has struggled to achieve its central goals even as it set off a cascade of unintended consequences.”
Despite UM investing $250 million into DEI since 2016, students and faculty have reported a deteriorating campus climate since the program began and are less likely to interact with people of a different race, religion or political ideology, though these are “the exact kind of engagement[s] D.E.I. programs, in theory, are meant to foster,” the article stated. Attempts to create a more diverse campus also fell flat, with black enrollment at the university remaining a steady 5%.
The program also created a “culture of grievance,” with the office’s conception coinciding with an “explosion” of complaints on campus involving race, gender and religion, the NYT reported. Meanwhile, nearly 250 university employees were engaged in some form of DEI efforts on campus.
Modrak in her email referenced the article, calling it a “tendentious attack” that was “not well researched,” and claiming that the author “cherry-picked” examples of UM’s failures.
DEI staff cost the university approximately $30.68 million annually, with the average salary reaching $96,400, according to Mark Perry, an American Enterprise Institute scholar. Several DEI employees are paid more than $200,000 a year, while the department’s head makes upwards of $400,000.
“I think that across the ideological spectrum both regular citizens and policymakers have really shifted on issues of identity politics,” John Sailer, senior fellow and director of higher education policy at the Manhattan Institute, told the Daily Caller News Foundation. “I think a lot of people who would have at some point, probably just as a matter of knee-jerk reaction, supported diversity initiatives, have started to really reconsider what these initiatives are actually doing, and reconsider whether everything that falls under the name of DEI is actually something that they support. And so there was already the slow burn.”
The major catalyst of this change, Sailer explained, was the series of fiery protests that ravaged college campuses across the country after Hamas’ deadly Oct. 7, 2023 attack on Israel, which were “absolutely a big part of the story.”
“A lot of people were already skeptical of DEI,” Sailer said. “A lot of people were already of the opinion that these policies, even though they purport to be about diversity, in practice really have been about a particular ideological vision for higher ed. Then on October 7, I think a whole different part of the American electorate and a whole different constituency, many more people from the professional world looked at universities and thought, What on earth is going on? What is the problem here?”
The University of Michigan, like many other schools, was overwhelmed by violent protests that resulted in several arrests and criminal charges being filed against 11 students and alumni.
“It became clear that a part of the problem was we have these massive bureaucracies that should ostensibly promote treating people well,” Sailer continued. “And it was in fact a lot of people most involved with the DEI complex who were supporting these kind of radically anti-Israel, radically anti-West, at times, rudely antisemitic demonstrations.”
The reelection of former president Donald Trump on Nov. 5 likely played no small role in this shift either.
“I think now every elected official is aware that there’s something of a popular mandate to reform higher education, and that mandate existed before Trump was elected in 2024, but there’s also a kind of popular rebuke of the progressive identity politics,” Sailer said. “I have to think that the conversation that the University of Michigan’s regents are having about DEI would be different if there had not been this nationwide rebuke of identity politics that the election of Trump seems to represent.”
Trump has promised many reforms to the education sector, including abolishing the Department of Education entirely. The president-elect has also vowed to bring peace to Israel and Gaza and said that such efforts would help curb the rise in antisemitism in the U.S.
While several other schools have begun to dismantle DEI offices across the country, some in response to state laws barring the departments and policies, the case at the University of Michigan is unique. Most efforts thus far have been led by Republican lawmakers, such as in Texas and Florida, but in the blue state of Michigan, the university’s highest governing body is comprised almost entirely of Democrats.
“The fact that University of Michigan is an institution controlled by elected Democrats, the fact that its Board of Regents would consider doing something like this, I think it signals a broader shift,” Sailer said. “It’s a huge deal for the University of Michigan to even have this kind of reform on the table. It’s a huge deal because the University of Michigan is the exemplar when it comes to DEI. If the University of Michigan makes this decision, that marks a big shift.”
This move by the university could signal others to follow suit.
“It could be just a massive step towards broader higher education reform,” Sailer told the DCNF.
UM and the Board of Regents did not immediately respond to the DCNF’s request for comment.
Business
Major tax changes in 2026: Report
The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today to highlight the major tax changes in 2026.
“There’s some good news and bad news for taxpayers in 2026,” said Franco Terrazzano, CTF Federal Director. “The federal government cut income taxes, but it’s hiking payroll taxes. The government cancelled the consumer carbon tax, but it’s hammering Canadian businesses with a higher industrial carbon tax.”
Payroll taxes: The federal government is raising the maximum mandatory Canada Pension Plan and Employment Insurance contributions in 2026. These payroll tax increases will cost a worker up to an additional $262 next year.
For workers making $85,000 or more, federal payroll taxes (CPP and EI tax) will cost $5,770 in 2026. Their employers will also be forced to pay $6,219.
Income tax: The federal government cut the lowest income tax rate from 15 to 14 per cent. This will save the average taxpayer $190 in 2026, according to the Parliamentary Budget Officer.
Carbon taxes: The government cancelled its consumer carbon tax effective April 1, 2025. However, the government still charges carbon taxes through its industrial carbon tax and a hidden carbon tax embedded in fuel regulations.
The industrial carbon tax will increase to $110 per tonne in 2026. While the government hasn’t provided further details on how much the industrial carbon tax will cost Canadians, 70 per cent of Canadians believe businesses pass on most or some of the cost of the tax to consumers, according to a Leger poll.
Alcohol taxes: Federal alcohol taxes are expected to increase by two per cent on April 1, 2026. This alcohol tax hike will cost taxpayers about $41 million in 2026-27, according to industry estimates.
First passed in the 2017 federal budget, the alcohol escalator tax automatically increases excise taxes on beer, wine and spirits every year without a vote in Parliament. Since being imposed, the alcohol escalator tax has cost taxpayers about $1.6 billion, according to industry estimates.
“Canadians pay too much tax because the government wastes too much money,” Terrazzano said. “Canadians are overtaxed and need serious tax cuts to help make life more affordable and our economy more competitive.
“Prime Minister Mark Carney needs to significantly cut spending, provide major tax relief and scrap all carbon taxes.”
You can read the CTF’s New Year’s Tax Changes report here.
Automotive
Politicians should be honest about environmental pros and cons of electric vehicles
From the Fraser Institute
By Annika Segelhorst and Elmira Aliakbari
According to Steven Guilbeault, former environment minister under Justin Trudeau and former member of Prime Minister Carney’s cabinet, “Switching to an electric vehicle is one of the most impactful things Canadians can do to help fight climate change.”
And the Carney government has only paused Trudeau’s electric vehicle (EV) sales mandate to conduct a “review” of the policy, despite industry pressure to scrap the policy altogether.
So clearly, according to policymakers in Ottawa, EVs are essentially “zero emission” and thus good for environment.
But is that true?
Clearly, EVs have some environmental advantages over traditional gasoline-powered vehicles. Unlike cars with engines that directly burn fossil fuels, EVs do not produce tailpipe emissions of pollutants such as nitrogen dioxide and carbon monoxide, and do not release greenhouse gases (GHGs) such as carbon dioxide. These benefits are real. But when you consider the entire lifecycle of an EV, the picture becomes much more complicated.
Unlike traditional gasoline-powered vehicles, battery-powered EVs and plug-in hybrids generate most of their GHG emissions before the vehicles roll off the assembly line. Compared with conventional gas-powered cars, EVs typically require more fossil fuel energy to manufacture, largely because to produce EVs batteries, producers require a variety of mined materials including cobalt, graphite, lithium, manganese and nickel, which all take lots of energy to extract and process. Once these raw materials are mined, processed and transported across often vast distances to manufacturing sites, they must be assembled into battery packs. Consequently, the manufacturing process of an EV—from the initial mining of materials to final assembly—produces twice the quantity of GHGs (on average) as the manufacturing process for a comparable gas-powered car.
Once an EV is on the road, its carbon footprint depends on how the electricity used to charge its battery is generated. According to a report from the Canada Energy Regulator (the federal agency responsible for overseeing oil, gas and electric utilities), in British Columbia, Manitoba, Quebec and Ontario, electricity is largely produced from low- or even zero-carbon sources such as hydro, so EVs in these provinces have a low level of “indirect” emissions.
However, in other provinces—particularly Alberta, Saskatchewan and Nova Scotia—electricity generation is more heavily reliant on fossil fuels such as coal and natural gas, so EVs produce much higher indirect emissions. And according to research from the University of Toronto, in coal-dependent U.S. states such as West Virginia, an EV can emit about 6 per cent more GHG emissions over its entire lifetime—from initial mining, manufacturing and charging to eventual disposal—than a gas-powered vehicle of the same size. This means that in regions with especially coal-dependent energy grids, EVs could impose more climate costs than benefits. Put simply, for an EV to help meaningfully reduce emissions while on the road, its electricity must come from low-carbon electricity sources—something that does not happen in certain areas of Canada and the United States.
Finally, even after an EV is off the road, it continues to produce emissions, mainly because of the battery. EV batteries contain components that are energy-intensive to extract but also notoriously challenging to recycle. While EV battery recycling technologies are still emerging, approximately 5 per cent of lithium-ion batteries, which are commonly used in EVs, are actually recycled worldwide. This means that most new EVs feature batteries with no recycled components—further weakening the environmental benefit of EVs.
So what’s the final analysis? The technology continues to evolve and therefore the calculations will continue to change. But right now, while electric vehicles clearly help reduce tailpipe emissions, they’re not necessarily “zero emission” vehicles. And after you consider the full lifecycle—manufacturing, charging, scrapping—a more accurate picture of their environmental impact comes into view.
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