Sacrificing Excellence for Ideology: The Real Cost of DEI

Campus Antisemitism and Free SpeechHouse Oversight and Government Reform Subcommittee on Health Care and Financial Services · June 25, 2025 · 119th Congress
The Oversight Subcommittee on Health Care and Financial Services held a hearing to examine diversity, equity, and inclusion (DEI) policies and their origins in affirmative action, hearing from four witnesses on the legal, economic, and academic effects of such programs. Begins at ▶ 0:17:51
Transcript
Highlights

Title

House hearing debates whether DEI undermines merit and civil rights law

Purpose

The Oversight Subcommittee on Health Care and Financial Services held a hearing to examine diversity, equity, and inclusion (DEI) policies and their origins in affirmative action, hearing from four witnesses on the legal, economic, and academic effects of such programs. Democrats objected that the topic fell outside the subcommittee's jurisdiction and used the hearing to criticize Medicaid cuts in pending reconciliation legislation and the elimination of an LGBTQ youth suicide hotline. Begins at▶ 0:17:51

Who spoke

• Chairman Rothman (R)▶ 0:17:51: Opened by tracing DEI's roots to LBJ's 1965 Executive Order 11246▶ 0:18:44, argued discrimination should never be fought with more discrimination▶ 0:19:40, and cited the recent unanimous Supreme Court ruling and 2023 affirmative-action decision as evidence courts oppose DEI▶ 0:22:14▶ 0:22:44.

• Ranking Member Krishnamoorthi (D)▶ 0:23:39: Criticized the hearing for ignoring health care, financial services, and oversight▶ 0:23:39, said the "large lousy law" cuts at least $625 billion from Medicaid▶ 0:24:29, and argued diversity drives competition and economic performance, citing his own name-related experience▶ 0:26:30.

• Dan Lennington, Wisconsin Institute for Law & Liberty▶ 0:29:11: Said his organization has represented 80+ clients harmed by DEI policies▶ 0:30:07, cited a Pew study finding over half of workers encounter discriminatory DEI policies▶ 0:31:05, and argued DEI violates five rules the Supreme Court used to strike down affirmative action▶ 0:32:17.

• Dr. Erec Smith, Cato Institute▶ 0:33:57: Said DEI has devolved into ideology rooted in critical theory that undermines merit▶ 0:34:56, described being labeled a "white supremacist" for questioning DEI tenets▶ 0:36:09, and criticized concepts like "ethnomathematics" as divisive▶ 1:36:39.

• Dr. Judge Glock, Manhattan Institute▶ 0:39:21: Said the federal government spent over $750 billion on contracts last year, with race/sex-based preference programs costing tens of billions▶ 0:39:46, and cited a DOT Inspector General finding a third of active fraud cases involved disadvantaged-business-enterprise fraud▶ 0:40:58.

• Dr. Shaun Harper, University of Southern California▶ 0:44:27: Argued America owes debts to enslaved people, women, and others harmed by discrimination▶ 0:44:57, presented data showing white Americans dominate leadership roles (77% of managers, 87% of Fortune 500 CEOs)▶ 0:46:15, and cited a Kellogg Foundation estimate that closing racial gaps could add $8 trillion to GDP▶ 0:48:22.

• Rep. Scott Perry (R)▶ 0:59:54: Introduced the "Merit Act" to bar affirmative action in federal hiring and contracting▶ 1:00:21, and questioned witnesses on the legal consequences of DEI-related civil rights violations▶ 1:02:24.

• Rep. Robin Randall (D)▶ 1:05:23: Traced DEI's origins to historical racism, citing exclusion of Black Americans from the Homeowners Loan Corporation and GI Bill▶ 1:08:10 and a Black homeownership rate of 46% versus 75% for white Americans▶ 1:10:01.

• Rep. McGuire (R)▶ 1:12:24: Argued DEI stands for "didn't earn it" and proposed legislation barring utility rate recovery tied to ESG/DEI frameworks▶ 1:14:57; asked all witnesses whether DEI is rooted in Marxist ideology▶ 1:15:50.

• Rep. Simon (D)▶ 1:18:18: Said the hearing represented an attack on people of color's place in government, invoking her ancestry and Dr. King's legacy▶ 1:18:44, and cited mass federal worker terminations and forced-out transgender service members▶ 1:22:33.

• Rep. Gill (R)▶ 1:23:51: Questioned Dr. Harper on ageism, colorblindness, and whether race should factor into hiring and college admissions▶ 1:23:51.

• Rep. Randall (second appearance) (D)▶ 1:29:56: Asked panelists about Black maternal mortality rates, citing roughly triple the rate for Black women versus white women, and low representation of Black OB-GYNs (8–11% vs. 68%)▶ 1:31:32▶ 1:32:34.

• Rep. Christy (D)▶ 1:38:55: Pressed on the elimination of the LGBTQ National Suicide Hotline created under Trump, citing 1.3 million calls/texts received▶ 1:38:55▶ 1:39:56.

Key moments

• Lennington said WILL has represented over 80 clients from 25 states harmed by DEI policies and filed six lawsuits against the Biden administration▶ 0:30:07.

• Krishnamoorthi and Harper agreed the House reconciliation bill will lead to at least 16 million people losing health insurance, with the Senate version worse▶ 0:57:45.

• Harper presented statistics showing 84% of Fortune 100 C-suite executives and 94% of U.S. governors are white, challenging claims that white employees face systemic discrimination▶ 0:46:15.

• Krishnamoorthi noted the Trump administration's CDC found LGBTQ youth suicide risk is roughly four times higher than peers, and that ending the National Suicide Hotline in the name of eliminating DEI was opposed even by Republican Reps. Lawler and Kim▶ 0:55:18▶ 0:56:37.

• Glock testified a California study found ending race/sex-based contracting preferences cut state highway costs by about 5.5% relative to federally funded projects▶ 0:42:15.

• A tense exchange between Rep. Gill and Dr. Harper over whether race should factor into hiring, with Harper repeatedly declining to answer "yes or no" and Gill accusing him of dodging▶ 1:26:03.

• Randall cited that the Black homeownership rate is 46% versus 75% for white Americans, and that Black maternal mortality is roughly three times the rate for white women▶ 1:10:01▶ 1:31:59.

• Rep. Christy noted his name appeared in the notes of the Minnesota shooter and cited a bipartisan floor resolution condemning political violence as a model for civility▶ 1:45:00.

• All four witnesses agreed, when asked directly, that DEI is rooted in Marxist or similar equity-based ideology, except Harper who said he didn't understand the question▶ 1:15:50.

• Chairman Rothman closed by arguing preference programs constitute "reverse discrimination," noting that a person from a family of multimillionaires can still be classified as disadvantaged under current law▶ 1:50:03.

Metadata

CommitteeHouse Oversight and Government Reform Subcommittee on Health Care and Financial Services
Chamber / CongressHouse · 119th Congress
DateJune 25, 2025
TypeHearing
Witnesses
Dr. Shaun Harper, Ph.D. — Provost Professor of Public Policy, Business, and Education, University of Southern California
Mr. Dan Lennington — Managing Vice President and Deputy Counsel, Wisconsin Institute for Law & Liberty
Dr. Judge Glock, Ph.D. — Director of Research and Senior Fellow, Manhattan Institute
Dr. Erec Smith, Ph.D. — Research Fellow, Cato Institute
Videoyoutube
Transcript215 caption blocks · 14,035 words · 1:51:55 runtime
EventCongress.gov 118424