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Federal DEI Rollbacks and Their Impact on LGBTQ+ and Disabled Workers

May 03, 20254 min read

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These policies rescinded requirements for federal contractors to collect DEI data and stripped protections for LGBTQ+ workers in hiring and retention practices (Williams Institute,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


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2025 DEI Workplace Report: Critical Insights on the Future of Inclusive Workplaces

DEI is at a crossroads.

Political shifts, legal challenges, and economic uncertainty are forcing businesses to rethink their inclusion efforts.

Where do employers stand today, and what’s next for DEI?

✔ See what’s changing in DEI hiring and retention and how top companies are responding.

✔ Uncover the biggest risks of scaling back DEI and what it means for your workforce.

✔ Get expert-backed strategies to build an inclusive workplace that drives real business results.

2025 DEI Workplace Report: Critical Insights on the Future of Inclusive Workplaces

DEI is at a crossroads.

Political shifts, legal challenges, and economic uncertainty are forcing businesses to rethink their inclusion efforts.

Where do employers stand today, and what’s next for DEI?

✔ See what’s changing in DEI hiring and retention and how top companies are responding.

✔ Uncover the biggest risks of scaling back DEI and what it means for your workforce.

✔ Get expert-backed strategies to build an inclusive workplace that drives real business results.

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