Each week, Liebert Cassidy Whitmore provides a summary of newly issued Executive Orders and other significant Presidential and federal actions that have a foreseeable impact on governance, compliance, and operational policies for California employers. The summaries below outline the key provisions of each action, along with our brief analysis of their potential implications for municipal agencies, school districts, nonprofits, and private schools.
Executive Action: Department of Education Announces Plan to Lay Off 1,300 Workers (March 11, 2025)
On March 11, 2025, the Department of Education announced plans to lay off more than 1,300 employees, reducing its workforce by nearly half.
Education Secretary Linda McMahon framed the layoffs as part of a larger effort to enhance efficiency. Ms. McMahon said student loans, Pell Grants, funding for special needs students and competitive grant making would remain unaffected.
The Department’s Office for Civil Rights already has a heavy backlog of civil rights investigations, and the layoffs may result in delays in investigations of public and private educational institutions by the Office of Civil Rights. LCW will continue to monitor impacts on educational institutions.
Executive Order: Continuing the Reduction of the Federal Bureaucracy (March 14, 2025)
On March 14, 2025, President Donald Trump signed an Executive Order titled “Continuing the Reduction of the Federal Bureaucracy” that continues the administration’s efforts to downsize federal agencies.
The Order eliminates the functions and personnel for the several federal agencies to the maximum extent allowed by law. Of potential relevance to California employers, the list of agencies includes in part: the Federal Mediation and Conciliation Service; the Institute of Museum and Library Services; the United States Interagency Council on Homelessness; the Community Development Financial Institutions Fund; and the Minority Business Development Agency. The head of each agency listed in the Order is required to submit a compliance report within seven days.
This Order may impact California employers that contract with or otherwise receive services or funding from the federal agencies listed in the Order.
The U.S. Department of Education’s Office for Civil Rights (OCR) opened investigations into 45 public and private universities under Title VI following OCR’s February 14 Dear Colleague Letter that reiterated schools’ civil rights obligations to end the use of racial preferences and stereotypes in education programs and activities. The investigations come amid allegations that these institutions have violated Title VI of the Civil Rights Act by partnering with “The Ph.D. Project,” an organization that provides doctoral students with insights into obtaining a Ph.D. and networking opportunities, but limits eligibility based on the race of participants.
UDPATE: Fourth Circuit Court of Appeals Lifts Injunction on DEI Executive Orders (March 14, 2025)
On Friday, March 14, the U.S. Fourth Circuit Court of Appeals paused the February 21, 2025 lower-court ruling in Maryland that had blocked enforcement of President Trump’s diversity, equity, and inclusion (DEI) related executive orders. The Court reasoned that the executive orders “are of distinctly limited scope” and “do not purport to establish the illegality of all efforts to advance diversity, equity or inclusion.”
As a result, the Trump administration may proceed with its ban on diversity, equity and inclusion programs in federal agencies and among federal contractors.