IBM has agreed to pay $17 million to settle a United States government probe over the firm’s diversity, equity and inclusion practices, which President Donald Trump’s administration has cracked down on during his second term in office.

The settlement marks the first resolution from the US Department of Justice’s unit, formed last year, called the “Civil Rights Fraud Initiative” to crack down on DEI policies using a civil anti-fraud law.

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Trump has targeted public and private organisations – from ​government agencies to private universities – over DEI practices that civil rights advocates say help address historic ⁠inequities for marginalised groups like women and ethnic minorities.

In January 2025, President Donald Trump signed an executive order that mandated all federal agencies end Diversity, Equity and Inclusion (DEI) programs. It included slashing diversity, equity and inclusion programs and proclaiming that the US federal government will only recognise two sexes, male and female, said a white house official.

The administration planned to end what the official described as “discriminatory programs,” including environmental justice grants and diversity training initiatives.