By Taylor Herzlich
Publication Date: 2026-04-13 16:29:00
IBM has agreed to pay $17 million to the Department of Justice to settle claims its diversity, equity and inclusion programs were discriminatory and unlawful.
It’s the first resolution reached under the Civil Rights Fraud Initiative, a new unit the Trump administration formed last year that uses a Civil War-era law to crack down on DEI programs.
“Racial discrimination is illegal, and government contractors cannot evade the law by repackaging it as DEI,” Acting Attorney General Todd Blanche said in a statement.
The settlement, which was announced Friday, resolved allegations from the federal government that IBM “knowingly maintained practices” that the US had deemed “discriminatory,” allegations IBM denied.
The feds claimed the New York-based computer giant identified “diverse” candidates when considering promotions, tied bonuses to achieving certain diversity…
