Attorneys General Demand Costco Abandon DEI Policies Following Trump’s Executive Order

In a significant move, attorneys general from 19 states have issued a stern warning to Costco, urging the company to terminate all “unlawful discrimination” associated with its diversity, equity, and inclusion (DEI) policies. This demand comes as a direct response to an executive order signed by former President Donald Trump, which effectively dismantled DEI initiatives within federal agencies and called upon private sector organizations to follow suit.

Legal Implications of DEI Policies

Kansas Attorney General Kris Kobach, who articulated strong concerns about the legality of race-based hiring practices, emphasized, “Racial discrimination is both immoral and illegal. Race-based employment hiring violates state and federal law, and as the chief law enforcement officer of Kansas, I intend to enforce the law vigorously.” Kobach’s remarks highlight the ongoing tension surrounding DEI policies and their perceived legality under current state and federal regulations.

Trump’s Directive Against DEI Practices

Trump’s executive order, enacted during his first week in office, charged state attorneys general with the responsibility of investigating sectors and organizations that allegedly engage in discriminatory DEI practices. This initiative is also expected to recommend potential lawsuits against violators, indicating a serious approach to policing these policies.

Private Sector Under Scrutiny

The executive order not only addresses federal entities but also encourages private organizations to align with federal civil rights laws and discontinue any discriminatory practices. Various sectors could fall under scrutiny, including publicly traded companies, large nonprofits, medical associations, and educational institutions with substantial endowments. The broad nature of this directive suggests significant implications for corporate America.

Costco’s Stance on DEI

While major corporations like Target, Walmart, and McDonald’s have started to revise or completely halt their DEI initiatives, Costco has maintained its commitment to these policies. Recently, the wholesale giant faced a shareholder proposal from the activist group National Center for Public Policy Research that sought a report on the risks associated with Costco’s DEI practices. This proposal was rejected, signaling Costco’s determination to uphold its policies despite external pressures.

Support for Costco’s DEI Initiatives

In an interesting development, Rev. Al Sharpton led a group of approximately 100 individuals from his National Action Network to a Harlem Costco store. Their “buy-in” was a demonstration of support for Costco’s decision to reject the anti-DEI proposal, showcasing a counter-narrative to the arguments made by state attorneys general. Sharpton asserted the importance of corporate responsibility regarding diversity and inclusion.

Legal Threats from State Officials

Iowa Attorney General Brenna Bird has been particularly vocal in her criticism of Costco’s continued adherence to its DEI policies. In a statement, she declared, “It’s time to ditch DEI. While other companies right the ship and abandon their illegal, woke policies, Costco has doubled down. I’m putting Costco on notice to do the right thing and eliminate discriminatory DEI. No American should be denied an opportunity because they don’t fit the woke mold.”

Pressure to Respond

The 19 attorneys general have given Costco a formal ultimatum, requesting a response within 30 days. They require either confirmation that the company has repealed its DEI policies or a detailed explanation of its decision to retain them despite the legal and social uproar surrounding such initiatives.

Broader Implications

The controversy surrounding Costco’s DEI policies reflects a growing national discourse on race, discrimination, and corporate responsibility. The attorneys general, including those from Alabama, Arkansas, Georgia, Idaho, Kentucky, and several other states, underscore the sentiments resonating in conservative circles. Their collective letter reflects a movement intent on reshaping corporate America in the wake of Trump’s policies.

Awaiting Costco’s Response

As of now, inquiries made to Costco for comment have gone unanswered. The outcome of this push against Costco’s DEI policies could set a precedent for other companies facing similar scrutiny, affecting not just the corporate landscape but also the broader conversation about discrimination and inclusion in America.

Fox News Digital’s David Spector contributed to this report.