New EO's on DEI, college sports, and a LIRR railroad labor dispute

Among the hundreds of recent executive orders (EOs), some target diversity, equity, and inclusion (DEI) and reforming college sports, and one gets involved in a local commuter railroad's labor issue.

Against diversity, equity, and inclusion

Trump continued his campaign against diversity, equity, and inclusion (DEI) initiatives by signing an Executive Order requiring language in federal contracts to guarantee that the contractor and any subcontractors will not engage in any practices promoting DEI, and will report any contractors they’re aware are engaging in said practices. Contract violations may result in termination of the contract and potentially prosecution under the False Claims Act. The False Claims Act states that anyone who submits a false claim to the government (such as agreeing to not engage in DEI and then violating that agreement) would be subject to three times the government’s damages, plus a penalty. The government has already come to a settlement under the False Claims Act for $17 million against IBM.

Trump also signed an Executive Order instructing the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC), and Department of Labor (DOL) to increase oversight and regulatory enforcement of proxy advisors, which are firms hired by investors to provide research and recommendations to assist investors in decision-making processes. These advisors don’t vote on behalf of investors, they only advise them on data and make voting recommendations, but critics say they still have too much influence. Trump specifically mentions the Institutional Shareholder Services Inc. (ISS) and Glass Lewis & Co., two of the largest proxy advisor firms, alleging that they use their influence to promote “radical politically motivated agendas” like DEI and environmental, social, and governance (ESG) issues. ISS and Glass Lewis have already begun to adjust their practices in anticipation of enhanced regulatory scrutiny, taking a more measured approach to recommendations for environmental and social proposals.

DEI refers to a range of workplace policies or practices ostensibly meant to reduce workplace discrimination and other barriers based on race, gender, disability, ethnicity, religion, and so on.

College sports

The landscape for college athletes has changed drastically in recent years with name image and likeness compensation and expanded player eligibility and transfer rules. Trump claims in an April executive order that college sports as a whole is at risk from an “out-of-control financial arms race” among colleges. The Order instructs governing bodies over college sports such as the National College Athletic Association (NCAA) to update their rules on eligibility, student transfer, medical care, revenue sharing, and name image and likeness (NIL) contracts to the detriment of student athletes and smaller athletic programs. The Director of the Office of Management and Budget is instructed to issue guidance to federal grantmaking agencies to suspend or terminate grants to schools that violate the rules, even potentially debarring them from future funding. And the Attorney General is instructed to take measures to invalidate state laws that conflict with the athletic governing body rules.

The order has drawn wide support from college sports institutions who have been calling for federal action in the form of legislation. However, major questions remain about whether it can be enforced and the likelihood of challenges in court for the stipulation of unrelated federal funding and encroachment on state regulatory functions.

Trump also used an Executive Order to demand that the annual Army-Navy football game be given an exclusive window to televise the game.

And he signed an Executive Order to schedule an INDYCAR street race in D.C. in celebration of America’s 250th birthday.

Settling a railroad worker labor contract dispute

An Emergency Board was established by an Executive Order in January to settle the labor contract dispute between the Long Island Rail Road (LIRR), a commuter rail in New York City’s suburbs (the largest commuter rail in the nation), and five of its union partners.

Both sides of the dispute, LIRR and a coalition of unions, were required to submit offers to the emergency board which would choose which offer was the most reasonable. In March the board sided with the union coalition due to the work rule changes required by LIRR in their offer, but the LIRR rejected the recommendation. If an agreement isn’t made by May 16, the unions could strike or be locked out.

Union leaders have indicated that while they don’t want to strike, they’re prepared to bring the busiest commuter railroad in the country to a halt if LIRR doesn’t come back to the negotiation table in good faith.