Friday Edition: DOGE vs. DEI?

With the Trump administration hellbent on slashing government costs, one of the first places it might look is diversity, equity and inclusion-related federal contracts, which have ballooned in recent years. (City Journal)

A new analysis by conservative activist Chris Rufo: Official federal spending data from USAspending.gov shows the government spent at least $27 million on DEI-related contracts in 2019.

• By 2023, this grew to over $1 billion in federal DEI contracts.

Zoom in: The contracts span a range of government agencies and departments.

• Treasury Department: $2.8 million awarded to Accenture Federal Services for DEI implementation.

• Health and Human Services: $2.9 million contract with Totem for DEI work.

• Department of Defense: Paid $3.3 million to Tyler Federal for DEI database services.

• USAID: Allocated $6.2 million to SSG Advisors for DEI-related initiatives.

• Department of Labor: Spent $4.4 million with CALCO Consulting Group for DEI training in its Job Corps program.

• NASA: $2.4 million awarded to LMI Consulting to integrate DEI into its culture and operations.

• Department of Homeland Security: A $2.1 million DEI contract with Millennium Group International, potentially reaching $7.5 million by 2028.

Context: The newly announced Department of Government Efficiency seeks to eliminate federal waste and abuse, and drastically reduce the size of government.

• Elon Musk and Vivek Ramaswamy, the two businessmen tasked with leading DOGE, are both vehement critics of DEI.

• Studies have repeatedly shown workplace DEI initiatives are ineffective, and, in some cases, harmful.

The vibes: According to a new Pew Research Center survey, a growing share of U.S. workers think companies pay too much attention to increasing diversity in the workplace.

• The percentage of workers who think DEI is a “bad thing” is also on the upswing.

As the chart below shows there are often more job openings requiring a college degree than there are workers with degrees, meaning it may be time for employers to rethink traditional hiring methods. (Financial Times)

The trend: Skills-based hiring, the practice of hiring and promoting people “for their skill set, regardless of whether or not they graduated college,” is gaining ground with some of the biggest U.S. companies, including Walmart, General Motors and Amazon.

• 73% of employers used skills-based hiring in 2023, up from 56% in 2022, according to a report by TestGorilla, a talent assessment platform.

• According to the Burning Glass Institute, the share of jobs requiring a degree dropped to 44% last year, down from 51% in 2017.

• Roughly 2 in 3 U.S. workers lack four-year degrees.

On the other hand: Per the Burning Glass Institute, 45% of companies that dropped degree requirements in job postings didn’t actually adjust their hiring practices.

• 18% of firms, including Nike and Uber, initially made progress on skill-based hiring but eventually reverted to degree-based hiring.

• Only 97,000 workers annually have benefited from skills-based hiring (out of 77 million hires).

The vibes: Multiple recent surveys have found the perceived value of a four-year degree has declined, as has confidence in the institution of college itself.

• A 2023 Wall Street Journal-NORC poll found 56% of U.S. adults believe a college degree is a poor investment, up from 40% in 2013.

• A growing share of young people are college-skeptical: A Thumbtack report from September found 55% of Gen Z respondents are considering a career in skilled trades, a 12% increase from last year.

• 93% of Gen Z college graduates and 80% of parents believe learning a skilled trade can provide better economic security than a college degree.

Bubba’s Two Cents

Americans’ growing doubts about college tie into a wider mistrust of the so-called experts, a trend that was punctuated by Donald Trump’s 2016 and 2024 presidential victories.

Education is increasingly becoming the line that divides us on politics, culture and even physical wellbeing.

Is there such a thing as too many rules and regulations? (Free Press)

A case study: Brittany Patterson, a mother of four, was arrested last month for "reckless conduct" after her 10-year-old son walked alone about a mile to a gas station in rural Georgia.

• Patterson was not home at the time, although her disabled father was supervising the family residence.

• The Georgia mom’s arrest reflects a broader trend of parents being penalized for granting children independence.

Free Press reporter Leighton Woodhouse on how Patterson’s experience isn’t an isolated incident:

Bubba’s Two Cents

The outrage over intrusive pandemic measures (like lockdowns) may have sparked Americans’ broader frustration with excessive rules, from bureaucratic delays in construction to invasive personal cases like Brittany Patterson’s. Could this be why figures like Donald Trump, who openly flout the rules, are so appealing to a weary electorate?