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Costco facing serious pressure from Republican attorneys general to ditch DEI policies

President Trump issued an order ending DEI initiatives across the federal government last week

Katie Hawkinson
in Washington D.C.
Tuesday 28 January 2025 10:45 EST
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Several Republican state attorneys general have written to Costco signaling they want the company to end its diversity, equity and inclusion policies amid President Donald Trump’s crackdown on the programs across the federal government.

Nineteen Republican attorneys general — including Texas’s Ken Paxton and Iowa’s Brenna Bird — have signed a letter demanding Costco either tell states it will repeal its own DEI policies or explain why they will be maintained.

“We...urge Costco to end all unlawful discrimination imposed by the company through diversity, equity, and inclusion (“DEI”) policies,” the letter reads. “Although Costco’s motto is ‘do the right thing,’ it appears that the company is doing the wrong thing—clinging to DEI policies that courts and businesses have rejected as illegal.”

The Independent has contacted Costco for comment.

Ninety-eight percent of U.S. Costco shareholders voted against a proposal requesting the company evaluate and report on the risks associated with their DEI efforts last week.

"Our efforts around diversity, equity and inclusion follow our code of ethics," Costco’s Board of Directors said in a statement regarding the proposal, per ABC News.

Texas Attorney General Ken Paxton and eighteen other Republican state attorneys general have called on Costco to repeal its DEI programs
Texas Attorney General Ken Paxton and eighteen other Republican state attorneys general have called on Costco to repeal its DEI programs (© 2024 Yi-Chin Lee / Houston Chronicle)

"Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all,” the statement continued. “We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed.”

The letter to Costco comes after Trump issued an executive order on the first day of his presidency directing agency leaders to dismantle DEI policies at federal agencies and private companies that receive federal contracts. This order also means all federal DEI workers have been put on leave.

Amid Trump’s order, several private companies have also chosen to repeal their own DEI programs in recent weeks.

Target — the seventh-largest U.S. retailer, according to the National Retail Federation — announced last week it would end the Racial Equity Action and Change program, which was established to support Black employees and Black shoppers while promoting Black creators and vendors.

The policy was implemented in 2020 following the death of George Floyd, a Black man murdered by a Minneapolis police officer.

“Throughout 2025, we’ll be accelerating action in key areas and implementing changes with the goal of driving growth and staying in step with the evolving external landscape. We will continue to monitor and adjust as needed,” the company said in a statement. “Current actions include…concluding our Racial Equity Action and Change (REACH) initiatives in 2025 as planned.”

The company will also no longer have a presence at the Twin Cities Pride celebration this year, CBS News reports.

Costco is holding firm it its commitment to DEI policies amid pressure from Republicans
Costco is holding firm it its commitment to DEI policies amid pressure from Republicans (Getty Images)

Meta, which owns Instagram and Facebook, also announced its plan to repeal DEI programs — which came before Trump took office. Instead, the company will “focus on how to apply fair and consistent practices that mitigate bias for all, no matter your background,” a spokesperson told the Associated Press on January 10.

Meta CEO Mark Zuckerberg attended Trump’s inauguration soon after the announcement.

However, other companies are standing their ground and maintaining their DEI policies. These companies include Goldman Sachs and JPMorgan Chase.

"We strongly believe that organizations benefit from diverse perspectives, and Goldman Sachs is committed to operating our programs and policies in compliance with the law,” a spokesperson for Goldman Sachs told ABC News.

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