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Business

Trump gains ground in war against DEI

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From The Center Square

By Casey Harper

A major shift is underway in the way large companies talk about and fund Diversity, Equity and Inclusion programs.

President Donald Trump began the transition when he signed an executive order last month eliminating DEI policies and staff at the federal government and extending the anti-DEI policy to federal contractors.

Private companies, some of which had already begun the transition before Trump took office, remarkably began backing off their DEI policies, even if only symbolically with little internal change.

Costco resisted, pushing back on the Trump administration, but other major brands like Amazon Wal-Mart, Target, and Meta announced a pullback from DEI. Media reports indicated DEI discussions on earnings calls has plummeted.

Others, such as Wisconsin-based financial services company Fiserv, have not yet made a change, at least not publicly.

A murky legal future awaits companies willing to take the risk to stick with DEI policies, particularly in hiring.

Fiserv receives hundreds of millions of dollars in government contracts.

According to Fiserv’s website’s Diversity & Inclusion page, the company is “committed to promoting diversity and inclusion (D&I) across all levels of the organization, in our communities and throughout our industry.”

Fiserv says that it “partner[s] with people and organizations around the world to advance our D&I efforts and create opportunities for our employees, entrepreneurs around the world and the next generation of innovators.”

The company’s diversity and inclusion page includes a careers section that discusses “engaging diverse talent” and events to connect with “diverse candidates.”

Critics of DEI initiatives and policies say they discriminate against white men and Asians and lead to hiring and promotion decisions based on factors such as race and sexual orientation rather than merit.

In its 2023 Corporate Social Responsibility Report, the company boasted that “60% of director nominees for the 2024 annual meeting reflect gender or racial/ethnic diversity.”

According to an April 2024 report from Payments Dive, Fiserv was “buoyed by sales to government entities” in Q1 of 2024 and reported $500 million in revenue from those contracts. The U.S. Coast Guard contracted with Fiserv in 2024 to help with payroll, according to HigherGov, among other government contracts.

Fiserv did not respond to multiple requests for comment.

A watershed moment against DEI came when during the Biden administration, the U.S. Supreme Court ruled against longstanding affirmative action policies at American universities, one key example of white and Asian Americans being discriminated against.

Trump’s election has only solidified the new legal framework for what is permissible when considering race and gender in hiring, promotion, and workplace etiquette.

From Trump’s order:

In the private sector, many corporations and universities use DEI as an excuse for biased and unlawful employment practices and illegal admissions preferences, ignoring the fact that DEI’s foundational rhetoric and ideas foster intergroup hostility and authoritarianism.

Billions of dollars are spent annually on DEI, but rather than reducing bias and promoting inclusion, DEI creates and then amplifies prejudicial hostility and exacerbates interpersonal conflict.

DEI has become increasingly controversial as activists use the moniker to advance every liberal policy on race and gender, often at taxpayer expense. In the federal government, DEI had become widespread and infiltrated into every part of governance, from racial quotas for promotions at the Pentagon to driving healthcare research at the National Institutes of Health.

At private companies, DEI policies guided investment decisions via ESG (Environmental, Social Governance) as well as personnel decisions with racial quotas for company board rooms. Those ideas are out of favor with the Trump administration.

Some of the companies resisting the shift from DEI could face legal action.

A coalition of state attorneys general sent a letter to Costco alleging it is violating the law, as The Center Square previously reported.

“Although Costco’s motto is ‘do the right thing,’ it appears that the company is doing the wrong thing – clinging to DEI policies that courts and businesses have rejected as illegal,” the letter said.

This week, Missouri Attorney General Andrew Bailey filed a lawsuit against Starbucks for similar policies.

“By making employment decisions based on characteristics that have nothing to do with one’s ability to work well, Starbucks, for example, hires people by thumbing the scale based on at least one of Starbucks’ preferred immutable characteristics rather than an evaluation of an applicant’s merit and qualifications,” the lawsuit said. “Making hiring decision on non-merit considerations will skew the hiring pool towards people who are less qualified to perform their work, increasing costs for Missouri’s consumers.”

A 2022 Starbucks document touts a DEI goal: “By 2025, our goal is to achieve BIPOC representation of at least 30% at all corporate levels and at least 40% at all retail and manufacturing roles.”

Bailey called the Starbucks policies discriminatory and illegal.

“With Starbucks’ discriminatory patterns, practices, and policies, Missouri’s consumers are required to pay higher prices and wait longer for goods and services that could be provided for less had Starbucks employed the most qualified workers, regardless of their race, color, sex, or national origin,” Bailey said. “As Attorney General, I have a moral and legal obligation to protect Missourians from a company that actively engages in systemic race and sex discrimination. Racism has no place in Missouri. We’re filing suit to halt this blatant violation of the Missouri Human Rights Act in its tracks.”

Casey Harper

Casey Harper

D.C. Bureau Reporter

Automotive

Supreme Court Delivers Blow To California EV Mandates

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From the Daily Caller News Foundation

By Katelynn Richardson

“The Supreme Court put to rest any question about whether fuel manufacturers have a right to challenge unlawful electric vehicle mandates”

The Supreme Court sided Friday with oil companies seeking to challenge California’s electric vehicle regulations.

In a 7-2 ruling, the court allowed energy producers to continue their lawsuit challenging the Environmental Protection Agency’s decision to approve California regulations that require manufacturing more electric vehicles.

“The government generally may not target a business or industry through stringent and allegedly unlawful regulation, and then evade the resulting lawsuits by claiming that the targets of its regulation should be locked out of court as unaffected bystanders,” Justice Brett Kavanaugh wrote in the majority opinion. “In light of this Court’s precedents and the evidence before the Court of Appeals, the fuel producers established Article III standing to challenge EPA’s approval of the California regulations.”

Kavanaugh noted that “EPA has repeatedly altered its legal position on whether the Clean Air Act authorizes California regulations targeting greenhouse-gas emissions from new motor vehicles” between Presidential administrations.

“This case involves California’s 2012 request for EPA approval of new California regulations,” he wrote. “As relevant here, those regulations generally require automakers (i) to limit average greenhouse-gas emissions across their fleets of new motor vehicles sold in the State and (ii) to manufacture a certain percentage of electric vehicles as part of their vehicle fleets.”

The D.C. Circuit Court of Appeals previously rejected the challenge, finding the producers lacked standing to sue.

“The Supreme Court put to rest any question about whether fuel manufacturers have a right to challenge unlawful electric vehicle mandates,” American Fuel & Petrochemical Manufacturers (AFPM) President and CEO Chet Thompson said in a statement.

“California’s EV mandates are unlawful and bad for our country,” he said. “Congress did not give California special authority to regulate greenhouse gases, mandate electric vehicles or ban new gas car sales—all of which the state has attempted to do through its intentional misreading of statute.”

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Business

Ottawa has spent nearly $18 billion settling Indigenous ‘specific claims’ since 2015

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From the Fraser Institute

By Tom Flanagan

Since 2015, the federal government has paid nearly $18 billion settling an increasing number of ‘specific claims’ by First Nations, including more than $7 billion last year alone, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think tank.

“Specific claims are for past treaty breaches, and as such, their number should be finite. But instead of declining over time, the number of claims keeps growing as lucrative settlements are reached, which in turn prompts even more claims,” said Tom Flanagan, Fraser Institute senior fellow, professor emeritus of political science at the University of Calgary and author of Specific Claims—an Out-of-Control Program.

The study reveals details about “specific claims,” which began in 1974 and are filed by First Nations who claim that Canadian governments—past or present—violated the Indian Act or historic treaty agreements, such as when governments purchased reserve land for railway lines or hydro projects. Most “specific claims” date back 100 years or more. Specific claims are contrasted with comprehensive claims, which arise from the absence of a treaty.

Crucially, the number of specific claims and the value of the settlement paid out have increased dramatically since 2015.

In 2015/16, 11 ‘specific claims’ were filed with the federal government, and the total value of the settlements was $27 million (in 2024 dollars, to adjust for inflation). The number of claims increased virtually every year since so that by 2024/25, 69 ‘specific claims’ were filed, and the value of the settlements in 2024/25 was $7.061 billion. All told, from 2015/16 to 2024/25, the value of all ‘specific claims’ settlements was $17.9 billion (inflation adjusted).

“First Nations have had 50 years to study their history, looking for violations of treaty and legislation. That is more than enough time for the discovery of legitimate grievances,” Flanagan said.

“Ottawa should set a deadline for filing specific claims so that the government and First Nations leaders can focus instead on programs that would do more to improve the living standards and prosperity for both current and future Indigenous peoples.”

Specific Claims: An Out-of-Control Program

  • Specific claims are based on the government’s alleged failure to abide by provisions of the Indian Act or a treaty.
  • The federal government began to entertain such claims in 1974. The number and value of claims increased gradually until 2017, when both started to rise at an extraordinary rate.
  • In fiscal year 2024/25, the government settled 69 claims for an astonishing total of $7.1 billion dollars.
  • The evidence suggests at least two causes for this sudden acceleration. One was the new approach of Justin Trudeau’s Liberal government toward settling Indigenous claims, an approach adopted in 2015 and formalized by Minister of Justice Jodi Wilson-Raybould’s 2019 practice directive. Under the new policy, the Department of Justice was instructed to negotiate rather than litigate claims.
  • Another factor was the recognition, beginning around 2017, of “cows and plows” claims based on the allegation that agricultural assistance promised in early treaties—seed grain, cattle, agricultural implements—never arrived or was of poor quality.
  • The specific-claims process should be terminated. Fifty years is long enough to discover legitimate grievances.
  • The government should announce a short but reasonable period, say three years, for new claims to be submitted. Claims that have already been submitted should be processed, but with more rigorous instructions to the Department of Justice for legal scrutiny.
  • The government should also require more transparency about what happens to these settlements. At present, much of the revenue paid out disappears into First Nations’ “settlement trusts”, for which there is no public disclosure.

Read The Full Study

Tom Flanagan

Professor Emeritus of Political Science and Distinguished Fellow, School of Public Policy, University of Calgary

 

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