IBM has agreed to pay $17 million to resolve a U.S. government investigation into its diversity, equity, and inclusion practices, as scrutiny around such policies increases under President Donald Trump’s second term.
The U.S. government alleged that IBM used internal measures such as a “diversity modifier” that linked bonus compensation to meeting demographic targets, along with other practices. As part of the settlement, IBM said it has already ended or adjusted several related programs, while maintaining that it did not engage in any unlawful conduct.
The agreement makes clear that the settlement does not represent an admission of liability by IBM, nor does it mean the government’s claims lack merit.
The move comes as the administration continues to challenge DEI policies across both public and private sectors, arguing they can be discriminatory, while critics say such initiatives are meant to address long-standing inequalities affecting groups like women and ethnic minorities.
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