Accounting and consulting giant Deloitte has agreed to pay the United States $21.5 million to settle allegations it defrauded the federal government by continuing company DEI (diversity, equity, and inclusion) initiatives. 

The resolution is the latest settlement to result from the Trump administration’s efforts to rid policies from federally-contracted U.S. companies that prioritize immutable characteristics such as race or sex in hiring and staffing decisions. 

“Government contractors cannot reward or penalize employees based on race or sex — and labeling the practice DEI does not make it lawful,” Attorney General Todd Blanche said in a statement. “The Justice Department will aggressively pursue government contractors that have used taxpayer dollars to fund unlawful discrimination.”

“Merit drives opportunity and promotion. Not someone’s sex or race,” added Associate Attorney General Stanley E. Woodward Jr. “Today’s settlement is yet another example of this Department’s commitment to eliminating woke, unconstitutional practices from American workplaces.”

The DOJ alleged that the company was in violation of the False Claims Act, and pointed to a provision of law that requires companies contracting with the federal government to certify they will not discriminate against employees or applicants on the basis of race or sex. The department said the settlement resolves allegations from 2017 to the present that Deloitte falsely certified compliance with those conditions while continuing to engage in discrimination.

The department specifically accused the company of taking race and sex into account when hiring, promoting, and making staffing decisions, as well as tracking “demographic goals” and offering trainings and mentoring programs based on race and sex.

Deloitte said in a statement reported by The Wall Street Journal that the company is pleased to resolve the matter “to avoid the cost and distraction of protracted litigation.” By agreeing to the settlement, Deloitte did not admit any liability and denied engaging in the alleged conduct. 

President Donald Trump signed an executive order in January 2025 ordering the end of “dangerous, demeaning, and immoral race- and sex-based preferences.”

Katherine Hamilton is a political reporter for Breitbart News. You can follow her on X @thekat_hamilton.