State AGs warn retail giant Costco for doubling down on 'discriminatory' DEI

State AGs in 19 states urge Costco to end discriminatory DEI policies, aligning with Trump’s executive order to enforce civil rights laws and investigate violators.

Iowa Attorney General Brenna Bird and 18 other state AGs wrote a letter to Costco's CEO to urge an end to the DEI policies within the company. (Getty Images)

The order encourages private-sector entities to align with federal civil rights laws and discontinue "discriminatory" practices. Publicly traded companies, large nonprofits, foundations with significant assets, bar and medical associations and higher education institutions with substantial endowments are potential targets for DEI investigations.

Trump also dissolved all DEI within the federal government. While big companies like Target, McDonald's and Walmart backed off from their DEI policies, Costco shareholders voted last week to reject an anti-DEI proposal brought by activist shareholder group National Center for Public Policy Research. The measure would have required the wholesale grocery chain to issue a report on the risks associated with their DEI policies. 

The Costco board said its "commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information," according to reports.

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"Race-neutral practices, on the other hand, honor the founding ideals of this country," reads the letter sent to Costco CEO Ron Vachris by the 19 attorneys general. "Now, the federal government is also focusing on ensuring invidious racebased discrimination no longer finds a home in woke corporations."

The attorneys general want a response within the next 30 days to "either notify us that Costco has repealed its DEI policies or explain why Costco has failed to do so."

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Attorneys general from Alabama, Arkansas, Georgia, Idaho, Kentucky, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, Louisiana, Missouri, Montana, Nebraska and North Dakota also signed the letter.

Fox News Digital reached out to Costco but did not hear back by the time of publication.

Fox News Digital's David Spector contributed to this report.

Jamie Joseph is a writer who covers politics. She leads Fox News Digital coverage of the Senate. 

https://www.foxnews.com/politics/state-ags-warn-retail-giant-costco-doubling-down-discriminatory-dei