The racial justice movement that sparked increased scrutiny of racism in America and a proliferation in diversity, equity and inclusion efforts in the wake of George Floyd’s murder in 2020 has seen a major reversal under the Trump administration. Those efforts are now taking root not only within government, but in corporate boardrooms and the nonprofit sector.
What began as companies scaling back DEI efforts behind the scenes has become a public backlash and rollback. A report titled “The Rise and Fall of DEI in Corporate America” by Revelio Labs, states the current political landscape has provided “a convenient excuse to abandon [DEI] efforts.” By 2022, the report found, companies were already quietly scaling back DEI through slower hiring, restructured roles, and reduced budgets.
In the past year, major corporations including Walmart, Target, Lowe’s and Ford cut back on DEI efforts. Nonprofits and government contractors have faced similar pressure, with some eliminating programs and others scrubbing DEI language.
The Revelio report found that the number of DEI personnel in the Russell 3000 companies (the largest companies in the United States) had decreased by 13% since peaking in July 2022. The impact extends beyond those roles with 55% of DEI professionals who left transitioning into non-DEI positions at new employers, while 38% have remained at their organizations in roles outside DEI.
That rollback is happening despite evidence that DEI efforts were having an impact. Companies with DEI teams have more diverse hires than those without DE
I positions, the Revelio report states, as well as employees of color reporting higher job satisfaction.
This rollback could harm organizations long term. A 2024 study by Catalyst and the New York University School of Law’s Meltzer Center for Diversity, Inclusion and Belonging of 2,500 U.S. employees, executives, and legal leaders found 83% of corporate executives and 88% of legal leaders say maintaining or expanding DEI is essential to mitigating legal risk. Meanwhile 77% link DEI to financial performance. The report, “Risks of Retreat: The Enduring Inclusion Imperative,” also found DEI matters to employees, especially younger ones: 76% say they are more likely to stay if their employer supports DEI, while 43% say they would quit if support ends. There was more support for DEI among women, Gen Z, and millennials.
DEI Work Continues Quietly
This complex backdrop and the political attacks on DEI are reshaping how people experience work, belonging, and even their sense of self. It is also spurring conversations about what effective and legal DEI policies and programs look like.
“There was such a focus on just bringing more diverse people in,” says James McKim, managing partner of Organizational Ignition, which works with organizations statewide on change management and DEI issues. “But DEI—diversity, equity and inclusion—is broader than race.”
And training alone, adds McKim, author of “The Diversity Factor: Igniting Superior Organizational Performance,” has “never been enough to have a positive impact. DEI efforts have been almost exclusively training. Some DEI efforts have failed because they have not been implemented correctly.”
For many employees and employers, attacks on DEI have not meant ending equity work, but a recalibration of how values are communicated. Jennice Chewlin, founder of the Chewlin Group, which consults with organizations navigating organizational well-being, says this stark shift, including changes to language, can quietly undermine morale and trust. “Organizations can scrub DEI language from their websites and memos, but people cannot hide fundamental parts of their identity, which can make that recalibration often feel like personal erasure.”
When employees feel unsafe expressing their ideas, Chewlin says trust erodes along with collaboration and productivity. “If people can’t express themselves without fear of retribution, it impacts the bottom line and drives people out the door,” she says.
NonprofitsUnder Pressure
Nonprofits face the same pressures, but with fewer buffers. Kathleen Reardon, CEO of the NH Center for Nonprofits, says organizations are navigating “impossible choices,” balancing the risk of losing critical federal funding with addressing the DEI aspects of their mission. “Some nonprofits are pushing back, and some are not in a position to do so,” Reardon says. “They’re reframing language for grants and certifications while staying focused on their values.”
The Center has recommitted internally to DEI while helping nonprofits navigate uncertainty without abandoning their missions. It has hosted webinars on legal risk, created peer-learning spaces, and launched a “Meeting the Moment” resource hub.
“There is a lot of stress in the sector, and a lot of people are tired,” Reardon says. “Many nonprofit missions are focused on supporting people who are more vulnerable and underrepresented. If you’re striving to make better conditions for all people, these changes are challenging.”
Tanisha Johnson, executive director of Black Lives Matter NH, says that to remain eligible for grants, “We have to be cautious on where and what we apply to because listing specifically Black communities or racial disparities cause us to lose opportunities and decrease our impact. That’s because funders are afraid to fund these now.”
The challenge is intensified by federal executive orders requiring that organizations certify they do not engage in DEI programs that violate anti-discrimination laws without clearly defining what constitutes illegal DEI.
“Many nonprofits are facing a really complex set of circumstances as they navigate these orders,” Reardon says. “It’s different from for-profit organizations because of nonprofits’ reliance on federal funding to support communities.”
The Myth of the Level Playing Field
Those opposing DEI efforts often argue in favor of meritocracy—that the focus should be on results and abilities and not on a person’s race, gender, sexual orientation or other factors. Meritocracy is the idea that if people work hard enough they will be afforded the same opportunities as everyone else. But according to Nicole Sublette, owner of Therapists of Color in Manchester, that ignores systemic challenges.
DEI proponents say the myth of meritocracy ignores systemic issues that pose barriers for economically vulnerable populations. According to 2025 Federal Reserve Bank of St. Louis data, the top 10% of households hold more than two-thirds of the nation’s wealth, while the bottom half hold just 2.5%. White households hold roughly five times the wealth of Black and Hispanic households.
Education level tracks closely with that divide. Households headed by someone with some college but no four-year degree hold just 30 cents for every dollar held by households headed by a college graduate. High school–educated households hold 22 cents.
“When we talk about merit without talking about access, we’re erasing reality,” Sublette says of those without an opportunity for any higher education.
Federal policy changes compound that divide for some students. Under the “One Big, Beautiful Bill” Act, graduate loan limits now distinguish between “professional” degrees, such as medicine and law, and other master’s programs. Fields like social work and nursing were excluded and have limits that could prevent access.
“That means people have to consider risky privatized loans,” Sublette says. “And when you look at who’s disproportionately affected, it’s therapists of color, social workers, people doing community-based healing work. That pool could be diminished because they don’t have access to education.”
Backlash for Educators
Education is another area under attack. In today’s environment, teachers can be particularly vulnerable, Chewlin says. With education singled out by conservative lawmakers, many now work under the threat of retaliation. “Teachers cannot do their best job if they’re constantly worried about punishment,” she says.
A 2021 state law barring teachers from endorsing certain concepts related to race and gender—New Hampshire’s so-called “divisive concepts bill”—was struck down in federal court last April. Still, teachers and school boards remain nervous, leading to book bans and curricular changes aimed at avoiding scrutiny.
The political backlash against DEI has also reshaped both structure and morale in higher education. In July 2025, Nadine Petty’s title at the University of NH changed from chief diversity officer to associate vice president for community, civil rights, and compliance, following state anti-DEI legislation. Petty says uncertainty around how to interpret the law created “real confusion about what aspects of my team’s work would remain legal,” adding that the ambiguity was “incredibly stressful.”
A preliminary injunction on the legislation last October provided some relief, she says. “Seeing years of research and data-informed work undermined has been demoralizing,” Petty says.
UNH’s decision to stop considering diversity in hiring also limited Petty’s work to expand applicant pools. “Representation matters,” she says, warning of long-term impacts on employee and student diversity.
Despite low morale, staffing shortages, and budget pressures, Petty says her team remains committed to the wellbeing of the NH community. “We cried. We vented. We laughed,” she says. “There is a beauty in the souls of people who devote their energies toward bettering the circumstances of other humans. My team exemplifies that beauty each day.”
Chewlin sees that resolve in various companies. Businesses and organizations, she says, are not uniformly retreating. “When I ask them why they’re bringing me in, they say, ‘I want my people to trust each other,’” she says.
Her clients continue to celebrate diversity openly. “They’re leading with values,” Chewlin says. “And they’re protecting their people, understanding they are what drive their mission forward.”
Adjusting to a New Climate
Zeina Eyceoz, executive director of NH Businesses for Social Responsibility (NHBSR), says there has been a “hushing effect” in some workplaces. “There’s confusion about what’s legal, what’s risky,” Eyceoz says. “So people sometimes withdraw.” Some companies quietly remove DEI language while continuing the work, she says, while nonprofits face heightened concern about retaliation or threats to their tax-exempt status.
“We see organizations taking away strong words like climate justice or environmental justice and replacing them with softer words,” Eyceoz says, noting that while this helps navigate the political climate, it may dilute the message. “As the political and legal climate has grown more hostile, NHBSR holds the space for recalibration and resilience.”
Throughout the winter and spring of 2025, NHBSR convened monthly virtual meet-ups facilitated by the Resilience Collective, led by a licensed psychologist. The sessions drew leaders serving marginalized communities grappling with burnout and the emotional toll of sustained backlash. NHBSR also continued DEI roundtables with the NH Center for Justice and Equity, creating forums for candid discussion.
One recurring topic last year was the role of Employee Resource Groups (ERGs). Even before 2025, Eyceoz says, organizations were rethinking their structure. “Many of our members expressed that it is more effective to design them around passions or interests rather than identity characteristics,” she says. “Members mentioned that it was better to keep them broad and more inclusive.”
“For example, a ‘Professional Women’s Network’ is open to men as allies. This protects the company legally and encourages cross-cultural education,” Eyceoz continues. “I think of this general shift in approach to DEI as evidence that we’re getting smarter about what actually drives inclusion. DEI isn’t a ‘set it and forget it’ task. It has to evolve and improve.”
Continued Resolve
At Bangor Savings Bank, the resolve to remain committed to diversity and a culture of belonging is unwavering, says David Pease, senior vice president and director of talent, diversity, and inclusion. When executive orders targeting DEI prompted internal questions last year, the answer was clear. “People were asking, ‘are we still doing this,’ and the answer was ‘yes, of course,’” Pease says. “We never began this to be trendy. This has never a program, but an enhancement to our culture.”
Bangor CEO Bob Montgomery-Rice holds regular forums with employees to hear concerns, says Pease. “We all have a voice,” he says. “At the bank it’s about allyship and taking care of everyone. You can’t be a great employer unless you understand your people.”
The bank’s “You Matter More” philosophy shapes daily practice, including hiring, training, and protecting employees. After recognizing disrespect toward frontline staff, Bangor adopted Green Dot bystander-intervention training and has ended relationships with disrespectful customers to preserve psychological safety.
Backlash Compounds Historic Inequities
For Johnson of Black Lives Matter NH, the rollback of DEI compounds crises like rising housing and childcare costs that were already pushing many families to the brink. “DEI is not just about race,” Johnson says. “It’s about veterans. It’s about people with disabilities. LGBTQ. It’s about children, curriculum, mental health, and telling honest histories.”
The rollback of DEI policies has had direct financial consequences for BLM. Johnson says the group recently lost a maternal health grant addressing racial disparities in childbirth outcomes, funding that would have supported doula training and a statewide maternal health conference.
“Our funding and donations are down at least 30% this year,” she says. BLM operates a mutual aid program providing barrier-free financial support and essential goods for Black, Indigenous, and People of Color (BIPOC) in NH. “Mutual aid distributed by the organization has dropped by roughly half, not because need has declined, but because resources have.”
Johnson also warns of psychological harm and isolation, depression, and rising youth suicide rates caused by DEI backlash. Still, she remains hopeful, yet measured. “Eventually this will pass,” she says. “The question is whether we’re prepared for what comes after.”
