The federal government once led the way in diversity, equity, and inclusion (DEI) commitments. But in 2025, that legacy is under threat.

A wave of executive orders has rolled back DEI policies across federal agencies, leading to the removal of workplace protections and a surge in layoffs that disproportionately affect disabled and LGBTQ+ employees.

The result is a chilling effect: not only on DEI programs but on the very idea of safe and equitable public service.

Executive Orders and Their Effects

Executive Orders 14168 and 14173 have reversed previous DEI mandates.

These policies rescinded requirements for federal contractors to collect DEI data and stripped protections for LGBTQ+ workers in hiring and retention practices (Williams Institute, 2025).

Federal agencies have been instructed to avoid DEI-related terminology in public documentation and internal messaging.

Some employees report being encouraged to report DEI-related activity for audit or review (Business Insider, 2025).

Disproportionate Impact on Marginalized Workers

Layoffs have hit disabled employees particularly hard.

According to an AP News investigation, disability accommodations and inclusive employment initiatives were among the first programs cut in agency restructuring (AP News, 2025).

LGBTQ+ federal workers have described a renewed atmosphere of fear and erasure.

One Them.us feature compared the environment to a "modern Lavender Scare"—a period in the 1950s marked by targeted firings of queer government employees (Them.us, 2025).

The Broader Implications

The rollback of DEI isn’t just a federal issue. It sets a tone for government contractors, grant recipients, and universities that rely on federal partnerships.

When inclusion disappears from the public sector, it ripples through every sector that depends on its standards.

What Employers Can Still Do

While the policy landscape has changed, the ethical responsibility to support marginalized employees remains. Federal teams and contractors can:

• Ensure anonymous employee feedback remains available

• Offer internal support groups and resource sharing

• Continue inclusive hiring practices, even when not mandated

• Collaborate with nonprofits to offer wraparound support

Conclusion

Removing protections doesn’t remove the need for them. If anything, the current climate has made inclusion more critical than ever.

Even when leadership backpedals, workplaces can still be built on values.

Supporting disabled and LGBTQ+ workers in 2025 means doing the work that policy no longer requires, but people still deserve.

How Diversity.com Helps You Build a More Inclusive Workforce

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If you have any questions or need assistance, feel free to Contact Us Here. Our dedicated support team is ready to help!

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• Community Over Compliance: How Nonprofits Are Adapting DEI in 2025

Sources & References

• AP News. (2025, April 30). Federal DEI layoffs hit disabled workers first. https://apnews.com/article/77528e68350b62e52bab3455f0a87591

• Business Insider. (2025, January 29). Trump tells federal workers to report DEI programs for discipline. https://www.businessinsider.com/federal-workers-should-report-dei-face-adverse-consequences-trump-2025-1

• Them.us. (2025, March 14). Queer and trans federal workers fear a new Lavender Scare. https://www.them.us/story/queer-trans-federal-workers-fear-lgbtq-purge-lavender-scare

• Williams Institute. (2025, February). Impact of executive order rollbacks on LGBTQ+ federal employees. https://williamsinstitute.law.ucla.edu/publications/impact-eo-nd-federal-workers