A new study is identifying the growing number of U.S. organizations that have changed their diversity, equity, and inclusion investments over the last three years in response to the 2023 Supreme Court decision in Students for Fair Admissions v. Harvard and the 2025 executive orders on DEI.
A report from Catalyst and NYU School of Law’s Meltzer Center for Diversity, Inclusion, and Belonging found that 77% of U.S. organizations have changed their diversity, equity, and inclusion investments over the last three years. The report also revealed a growing divide: more than half of federal contractors have scaled back inclusion efforts amid regulatory pressure, while a majority of companies outside federal contracting have actually increased their DEI initiatives.
While 51% of federal contractors are reducing inclusion initiatives amid mounting regulatory pressure, a majority of non-federal contractors are expanding their efforts. There are growing legal and cultural challenges surrounding DEI programs; however, the study found that most U.S. organizations still remain committed to fostering more inclusive workplaces.
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“Despite a high-risk legal environment, our research shows that DEI is not dying—it is evolving,” said Joy Ohm, Vice President at Catalyst. “We see a majority of organizations adjusting their strategies, so this is a story of adaptation, not a broad rollback. Even in the face of a concerted assault on the values of inclusion and fairness, many organizations remain deeply committed to this work.”
The findings are based on a survey of more than 2,000 employees and business leaders from medium and large U.S. companies examining how workplace inclusion efforts have shifted over the last three years. The research builds on a 2025 report from Catalyst and NYU School of Law’s Meltzer Center, which found that many business and legal leaders believe scaling back DEI initiatives could increase legal, financial, talent, and reputational risks for companies.
After the Supreme Court’s Students for Fair Admissions v. Harvard ruling and recent executive actions targeting DEI programs, many organizations have faced increased political and legal pressure around diversity initiatives. The new report found that federal contractors were far more likely to scale back inclusion efforts, while a majority of non-federal organizations reported expanding their DEI commitments over the last three years.
“It’s been extremely challenging for organizations of all kinds to navigate the legal environment for DEI work over the past few years,” said David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion, and Belonging at NYU Law. “Yet we are seeing companies adopt nuanced approaches to inclusion based on their specific risk exposure. This survey suggests that the political and regulatory scrutiny faced by federal contractors is a stronger driver of DEI rollbacks than the legal environment more generally.”
The report found that many companies appear to be publicly distancing themselves from DEI efforts more than they are actually reducing them internally. While 55% of employees said their company signaled a retreat from inclusion initiatives, only 34% reported seeing a meaningful reduction in the actual work being done behind the scenes.
“The legal and cultural attacks on inclusion are daunting, forcing organizations to reassess their strategies—but they haven’t changed the fundamental math,” said Emily Shaffer, senior director at Catalyst. “Leaders and employees alike recognize that inclusive workplaces drive reputation, sales, and talent. This data proves that while the climate has shifted, the underlying commitment to the work remains unwavering.”
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