IBM has agreed to pay $17 million to resolve a U.S. government investigation into the company's diversity, equity and inclusion practices, which the U.S. government has cracked down on during Trump's second term. The settlement marks the first resolution of an initiative called the Civil Rights Fraud Initiative established last year by the U.S. Department of Justice to use civil antifraud laws to combat diversity and inclusion policies.
Trump has taken aim at "free education" practices by public and private organizations - from government agencies to private universities - that civil rights advocates say help address historic inequities for marginalized groups like women and minorities.
In the Justice Department's settlement agreement with IBM, the U.S. government alleged that IBM's practices included using "diversity adjusters" to "tie bonus compensation to the achievement of demographic goals."
The settlement agreement also said that IBM terminated or modified a number of programs and policies, but the company denied any illegal conduct.
"This agreement is neither an admission by IBM of its liability nor an admission by the United States that its claims are without sufficient basis," the agreement said.
The White House believes that DEI is anti-utilitarian and discriminatory against groups such as whites and men. Trump has signed an executive order requiring federal contractors and subcontractors to eliminate DEI.
Many U.S. companies have scaled back or modified their diversity policies in the wake of Trump’s order.