Accounting and consulting giant Deloitte has agreed to pay the U.S. government $21.5 million to settle allegations that it defrauded federal agencies by maintaining diversity, equity, and inclusion (DEI) initiatives, according to the Department of Justice.
The settlement, announced Tuesday, is the latest in a series of actions under the Trump administration targeting DEI policies at federally contracted companies, which the administration argues can amount to unlawful discrimination based on race or sex.
DOJ: DEI Label Does Not Make Discrimination Lawful
Attorney General Todd Blanche said in a statement that government contractors cannot reward or penalize employees based on race or sex, and that labeling such practices as DEI does not make them lawful. He added that the Justice Department will aggressively pursue contractors that use taxpayer dollars to fund discrimination.
Associate Attorney General Stanley E. Woodward Jr. echoed that sentiment, saying merit—not sex or race—should drive opportunity and promotion. He called the settlement another example of the department’s commitment to eliminating what he described as ‘woke, unconstitutional practices’ from American workplaces.
False Claims Act Allegations
The DOJ alleged that Deloitte violated the False Claims Act by falsely certifying compliance with federal contracting requirements that prohibit discrimination based on race or sex. The settlement covers allegations dating from 2017 to the present, during which the department says Deloitte continued to engage in discriminatory practices despite those certifications.
According to the Justice Department, Deloitte allegedly took race and sex into account in hiring, promotion, and staffing decisions, tracked ‘demographic goals,’ and offered training and mentoring programs that were restricted by race or sex.
Deloitte Denies Liability
Deloitte said in a statement reported by The Wall Street Journal that it was pleased to resolve the matter to avoid the cost and distraction of protracted litigation. The company did not admit liability and denied engaging in the alleged conduct.
The settlement is part of broader efforts by the Trump administration to eliminate race- and sex-based preferences from federal contracting. In January 2025, President Donald Trump signed an executive order directing the end of what he called ‘dangerous, demeaning, and immoral race- and sex-based preferences.’
Source: www.breitbart.com — https://www.breitbart.com/politics/2026/08/26/deloitte-agrees-pay-21-5-million-end-doj-fraud-probe-dei-practices/