Rep. Brandon Gill, R-Texas, discussed the House’s push for the Senate to act on a reconciliation bill and criticized the American Bar Association’s influence over law school accreditation on “Sunday Night in America.”
Major accounting firm Deloitte has agreed to pay $21.5 million to resolve Department of Justice allegations that it violated the False Claims Act by failing to meet anti-discrimination obligations in federal contracts and by discriminating against employees and job applicants based on race or sex, the department confirmed Tuesday.
According to the DOJ, the settlement addresses accusations that Deloitte failed to comply with anti-discrimination requirements within its federal contracts and engaged in discriminatory practices against employees and applicants on the basis of race or sex.
The DOJ stated that certain business units within Deloitte received monthly reports tracking “demographic goals,” and that the company’s partners, principals, and managing directors were evaluated, in part, based on their contributions toward meeting workforce composition targets.
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Deloitte has agreed to pay $21.5 million to settle a Department of Justice investigation into the firm’s diversity, equity, and inclusion practices. (Jack Taylor/Getty Images)
The DEI initiatives, according to the DOJ, were designed to increase representation of Black and Hispanic employees in promotion decisions.
“Government contractors cannot reward or penalize employees based on race or sex, and labeling the practice DEI does not make it lawful,” Attorney General Todd Blanche said in a statement. “The Justice Department will aggressively pursue government contractors that have used taxpayer dollars to fund unlawful discrimination.”
Deloitte has denied the allegations of discriminatory conduct and emphasized that the settlement does not constitute an admission of liability. The company stated it was pleased to resolve the matter in order to “avoid the cost and distraction of protracted litigation.”
The DOJ clarified that the claims resolved through the settlement are allegations only and that no determination of liability has been made.
Deloitte denies allegations of discriminatory conduct and stated the settlement does not represent an admission of liability. (Artur Widak/NurPhoto via Getty Images)
The settlement also resolves claims filed under the False Claims Act’s qui tam provisions by the American Alliance for Equal Rights, an organization founded by conservative activist and affirmative action opponent Edward Blum. The provision allows private parties, known as relators, to bring cases on the government’s behalf and potentially receive a portion of any recovery.
Whistleblowers are entitled to a share of the proceeds in such cases. Blum’s organization will receive $4.3 million as part of the agreement, according to the DOJ.
“Merit drives opportunity and promotion—not someone’s sex or race,” Associate Attorney General Stanley E. Woodward Jr. said in a statement. “Today’s settlement is yet another example of this Department’s commitment to eliminating woke, unconstitutional practices from American workplaces.”
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Attorney General Todd Blanche stated that “labeling the practice DEI does not make it lawful.” (Alex Wroblewski/AFP via Getty Images)
The settlement comes amid the Trump administration’s broader effort to crack down on DEI initiatives since the president returned to the White House. These efforts have included executive orders aimed at eliminating DEI practices, such as directives requiring federal contractors and subcontractors to certify that they do not operate DEI programs that violate federal anti-discrimination laws.
The administration has targeted both public and private organizations over DEI, including government agencies and universities. Officials have argued that certain race- and sex-conscious DEI programs are discriminatory and undermine merit-based decision-making.
Many U.S. companies have scaled back or revised their diversity policies in response to the Trump administration’s enforcement push.
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