Federal Agencies Must Close All DEI Offices Within 90 Days; Bans Training on 'Oppression' and 'Privilege'

The aptly named “Dismantle DEI Act of 2025” is a sweeping legislative effort to systematically eliminate all Diversity, Equity, and Inclusion (DEI) functions across the federal government and any entity that receives federal funds. This bill doesn't just cut budgets; it mandates the immediate closure of DEI offices, bans specific types of workplace training, and creates a powerful new tool for private citizens to sue agencies and contractors who don't comply. The core of the bill defines a “prohibited diversity, equity, or inclusion practice” as anything that discriminates based on identity or requires mandatory training or assent to statements claiming any group is inherently superior, inferior, oppressive, or privileged (SEC. 3).

The Federal Workforce Clean Sweep

For federal employees, this bill means a massive restructuring. Within 90 days, every federal agency must close its DEI/A office and terminate the jobs associated with it through a mandatory reduction in force (RIF) (SEC. 105). Crucially, those employees whose jobs are eliminated cannot be moved or reassigned elsewhere in the agency. Think about the hundreds of specialized staff—from HR specialists to accessibility coordinators—who will be laid off without the option to transfer, losing institutional knowledge in the process. This mandatory RIF applies even to the Office of Personnel Management (OPM), which must shut down its Office of Diversity, Equity, Inclusion, and Accessibility (ODEIA) (SEC. 102).

Banning the Policy Playbook

Beyond personnel, the bill aggressively targets the policy infrastructure. It immediately rescinds several key Executive Orders and Memoranda that formed the basis for federal equity initiatives, including EOs 13985 and 14091 (SEC. 101). More specifically, federal funds are now banned from being used for developing or maintaining any strategic plans, reports, surveys, employee resource groups (ERGs), or even data dashboards related to DEI (SEC. 104). If you work in a federal office that relies on an affinity group for support or networking, the funds supporting that group are now cut off.

What Training is Now Illegal?

The bill sets strict limits on what federal employees and contractors can be taught. Federal funds are banned from being used to create, buy, or distribute any training course that deals with DEI, critical theory, intersectionality, sexual orientation, or gender identity (SEC. 201, SEC. 202). Furthermore, any training that requires employees to assert that one group is inherently superior, inferior, oppressive, or privileged is now illegal. If you refuse to take any of this banned training or sign a statement agreeing to these concepts, your federal employer cannot use that refusal to fire you, deny you a promotion, or give you a bad performance review (SEC. 106).

The Contractor and Grantee Catch

This isn't just an internal government memo; it hits the private sector hard. Federal contractors and grant recipients—from universities to defense firms—are prohibited from using federal funds to maintain DEI offices, pay Chief Diversity Officers, or conduct the now-banned training (SEC. 303, SEC. 401). For a university, this means federal research grants cannot cover the salary of the campus diversity officer or fund DEI training for grant-funded staff. For contractors, any contract over $10,000 must include a clause guaranteeing that no work will be performed in a facility that engages in a “prohibited diversity, equity or inclusion practice” (SEC. 301).

The Lawsuit Hammer: $1,000 Per Day

The most significant enforcement mechanism is the creation of a private cause of action (SEC. 801). This means any person can sue an agency or contractor in U.S. District Court if they believe the Act has been violated. If the plaintiff wins, the court must award a minimum of $1,000 for every day the violation occurred, plus attorney fees and compensatory damages. This daily statutory penalty is a huge financial risk for agencies and contractors, creating a powerful incentive for immediate, aggressive compliance and potentially opening the door to high-stakes litigation over workplace policies.

Regulatory Rollbacks and Education Shifts

Finally, the bill rolls back several existing regulations. It repeals Section 342 of the Dodd-Frank Act, eliminating offices focused on minority and women inclusion within financial regulators, and removes diversity reporting requirements from the Department of Defense (SEC. 702, SEC. 704). In education, accrediting agencies are now banned from requiring or encouraging colleges to engage in “prohibited DEI practices” or assess a school’s commitment to any specific ideology (SEC. 601). This effectively removes the ability for oversight bodies to push for diversity metrics in higher education.