Latest Federal Update

January 27, 2025 | By Mary Gatta and Alanna Suda

Legislation & Regulations
The American flag superimposed into the sky above the Capitol Building.

TAGS: legal issues, nace insights, public policy,

Below is information about the substance of several executive orders issued in the first few days of the administration that affect the work of career services and early talent recruiting professionals and their institutions and organizations, as well as those entering the workforce through higher ed. 

We will continue to keep you updated on regulations and laws that could impact our professions and workplaces. This will include details about the changes once more interpretation is available and we have a better understanding of the scope and compliance measures that will be necessary. 

For a full list of the executive orders, see Presidential Actions.

DEI Initiatives

President Trump rescinded several executive orders issued by President Biden.

The new administration eliminated government-wide DEI policies. Federal agencies and departments have been directed to terminate all DEI and environmental justice roles and offices. Federal funds are prohibited from being used to promote gender ideology through grants or government programming. In addition, the administration has mandated the exclusive use of the term “sex”—defined as male and female—in official documents, including passports and visas. This reverses the Biden administration’s broader definition of sex, which included gender identity, and allowed the designation of “X” as a gender on U.S. passports. 

Federal civil rights agencies, such as the Department of Labor and the Equal Employment Opportunity Commission, have been instructed to recognize only two sexes when enforcing anti-discrimination laws. Additionally, the attorney general has been directed to issue guidance clarifying that the 2020 Supreme Court decision (U.S. v. Skrmetti), which strengthened civil rights protections for transgender workers, does not apply to schools and students. This directive aligns with a recent ruling by a federal judge

The Office of Management and Budget (OMB) and the Office of Performance and Personnel Management have been tasked with coordinating changes to hiring practices. These changes include ending equity-focused programs and grants and terminating chief diversity officer positions that were designated during the Biden administration. President Trump also rescinded an executive order that had sought to overturn Trump’s prior ban on federal government and contractor racial bias training. 

Institutions receiving Title IV federal student aid funding will now be classified as federal subcontractors, thereby requiring them to comply with new guidance around DEI and hiring, training, and programming. Additionally, the Justice and Education departments have been given four months to prepare guidance that identifies the measures and practices required to comply with the Students for Fair Admissions vs. Harvard University decision. The guidance is expected to identify practices outside of admissions where consideration of race or ethnicity is illegal.

The administration plans to identify up to nine institutions to investigate that have endowments over $1 billion with DEI policies that they believe violate federal civil rights laws. 

The attorney general has been directed to issue guidance stating that Title IX does not require gender identity-based access to single-sex spaces; in addition, the Department of Education has been instructed to rescind its 2021 guidance that extended Title IX protections to include sexual orientation and gender identity. This policy had already been struck down by a district court in Texas; earlier this month, the Title IX regulations were struck down nationwide.

Federal agencies have been directed to compile lists of public companies, universities, and large foundations for potential investigations and civil actions related to their DEI programs. This directive includes elements specific to educational institutions by rolling back some of the protections under the Civil Rights Act of 1964.

The OMB has issued a memorandum directing all federal DEI staff to be placed on paid leave immediately and requiring the removal of all DEI-focused web pages. Federal agencies have also been instructed to develop plans to terminate DEI staff and cancel any related contracts or training programs. Federal workers have been encouraged to report any suspected renaming of DEI-related programs to the Office of Personnel Management.

Agencies were directed to compile a comprehensive list of federal DEI offices and workers as of Election Day to facilitate reduction-in-force actions against those workers. Although the order does not specify all targeted programs, it mandates a government-wide review to ensure compliance with the administration’s anti-DEI stance on all contracts and grants.

Education

President Trump announced a series of changes around educational policy, focusing on funding, governance, and regulatory oversight. The administration ended White House programs aimed at advancing educational equity and opportunities for Hispanic, Native American, and Black students. Efforts supporting tribal colleges and Hispanic-serving institutions have also been rolled back.

In a move to safeguard free speech, a new executive order prohibits federal agencies from using resources to unconstitutionally restrict free expression. Agencies have been directed to audit past actions, identify instances where free speech may have been curtailed, and correct such actions. This may involve revising contracts, partnerships, and public communication protocols. 

President Trump nominated Linda McMahon to lead the Department of Education. McMahon, who previously led the Small Business Administration and chaired the America First Policy Institute, has expressed an interest in focusing on workforce development and creating pathways for students to compete in the global economy. Her confirmation hearing is pending as of this writing; in the interim, Denise Carter, the acting leader of the department’s Federal Student Aid office, has been directed to oversee the agency. 

Immigration

President Trump also initiated a series of significant changes to immigration policy through executive orders. These actions include declaring a national emergency at the southern border and deploying armed forces, including the National Guard, to bolster border security efforts. Immigration Czar Thomas Homan announced that targeted enforcement initiatives are underway in major cities across the United States.

The administration has granted new authority to Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) officers to carry out deportations. This expansion is accompanied by a directive for the Department of Justice to take legal action against state and local officials who obstruct immigration enforcement efforts. In addition, ICE has been authorized to conduct arrests in schools, hospitals, and churches, rescinding previous guidelines that designated such locations as sensitive areas.  

President Trump issued an executive order seeking to end automatic birthright citizenship for children born in the United States to individuals who are not legally present in the country. This order has sparked legal challenges from more 20 states and cities, citing the protections of the 14th Amendment. As of this writing, the order has been stayed by a federal judge.

All visa applicants will face enhanced vetting, including F-1 and J-1 students, and the departments of State and Homeland Security have been issued a directive to ensure that applicants do not bear hostile attitudes toward U.S. institutions and do not advocate for, aid, or support designated foreign terrorists or other threats to our national security.

The attorney general and secretary of Homeland Security are required to review contracts, grants, and agreements between the federal government and nongovernmental organizations supporting or providing services, either directly or indirectly, to illegal aliens.

The administration has expressed support for legal pathways and acknowledged the need for immigrants as the U.S. economy grows, but has introduced measures that may complicate these processes. For example, the executive order on birthright citizenship encompasses children of immigrants legally residing in the United States on temporary work visas, including those in the H-1B program.

Labor Policy

The Trump administration has revived the “Schedule F” policy, making it easier to fire select career employees, and implemented a hiring freeze across federal agencies. Additionally, federal workers have been ordered to come back into the office. 

Congresswoman Lori Chavez-DeRemer (R-OR) has been announced as Trump’s pick for Labor secretary. She is known for her support of wide-ranging labor laws enhancing workers’ organizing rights and regulating the gig economy. Her confirmation hearing has not been scheduled as of this writing. 

Federal Funding

On January 27, President Trump issued an executive order that pauses federal financial assistance of agency grant, loan, and other financial assistance programs.  This memorandum requires federal agencies to identify and review all federal financial assistance  programs and supporting activities consistent with the president’s policies and requirements. This temporary pause provides the administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the president’s priorities. 

Artificial Intelligence Policy

The Trump administration reversed President Biden’s comprehensive measure to regulate artificial intelligence.

Updates will be provided through the NACE Insights newsletter and other NACE communications. 

Mary Gatta, Ph.D., is the director of research and public policy for NACE. Dr. Gatta has more than 20 years of teaching, research, and advocacy experience at colleges and in nonprofit organizations where she worked on issues of career education and workforce development.

Dr. Gatta’s work is centered on evidence-based research analysis to develop new solutions to current problems—particularly around economic security, education, and workforce policies. In all her research projects, she uses an equity and intersectionality lens.

Prior to joining NACE, Dr. Gatta served as an associate professor of sociology at City University of New York-Guttman and faculty director of the Ethnographies of Work program. In addition, she was the research director at the Rutgers University Center for Women and Work and a senior scholar at Wider Opportunities for Women in Washington D.C. Dr. Gatta also served on New Jersey Governor Phil Murphy's Labor and Workforce Development Transition Team.

Dr. Gatta received her bachelor’s degree in social science from Providence College and her master’s and Ph.D. in sociology from Rutgers University.

She can be reached at mgatta@naceweb.org.

author-avatar Alanna Suda is senior vice president, government relations, for MWW. NACE will provide periodic updates on public policy issues affecting career services and recruiting.