Speaker 1: We're joined now by DEI Labor Attorney Jason Schwartz. Mr. Schwartz, thanks so much for joining us. First, just want to ask your initial reaction to the scope of the executive order and the employees placed on leave.

Speaker 2: Sure, so nice to be with you. The scope of this order is huge. Really dramatic change, not only for government contractors, but for all private sector corporations.

Speaker 1: And Trump notably revoked the executive order signed by LBJ back in 1965, which prohibited discriminatory practices in employment decisions for federal contractors. What sort of immediate impact could we start to see?

Speaker 2: So the president, as you said, revoked the 1965 executive order from President Johnson and has flipped the requirements so that government contractors now have to agree not to engage in any sort of DEI program that has a preference based on race or gender. So not only do they get rid of their affirmative action programs, but they have to agree not to engage in certain DEI practices. That's a complete reversal. The OFCCP is now ordered to immediately cease its enforcement efforts under the 1965 civil rights program. And instead, contractors agree again that they cannot engage in any kind of preferential DEI programs. And the order suggests that that will be enforced, not just by the federal government, but that private citizens are gonna be deputized to bring what are called False Claims Act actions in order to enforce that government contractor requirement.

Speaker 1: Now, the White House said that the executive order demands departments and agencies take strong action to end DEI policies in the private sector as well, and that the attorney general should also encourage the end of DEI in the private sector. What could those actions look like?

Speaker 2: So, Lindsay, the most dramatic thing about that is the president literally asked the heads of every federal agency to provide a list of nine targets against whom they will initiate investigations and potential litigation to challenge private sector diversity programs that they believe are unlawful. So each agency is gonna be on the hunt for, and the mission is find the biggest whales you can, and the executive order says, look for large publicly traded corporations, large employers, large foundations, and send these lists to the White House so that the agencies can initiate investigations and litigation. I think that's going to be a substantial enforcement effort in the private sector, challenging lots of DEI programs at many, many companies.

Speaker 1: Leading up to Trump's second term, we saw a number of large corporations begin to roll back their DEI policies. Do you think that more companies will continue to follow suit?

Speaker 2: Very much so. No one wants to be on this list of nine companies. So I think part of the intended effect of this order is not only to find big companies to make an example of, but to scare everybody else into rolling back their programs.

Speaker 1: Okay, all right. Well, we thank you so much, Mr. Schwartz. Really appreciate your insight. And this just in, sources tell ABC that employees across the federal government today received memos asking them to report any possible DEI programs.