Most US companies remain committed to fair and inclusive workplaces, while federal contractors face unique threats

New York, May 12, 2026 – A new study by Catalyst and NYU School of Law’s Meltzer Center for Diversity, Inclusion, and Belonging finds that 77% of US organizations have shifted their diversity, equity, and inclusion (DEI) investments over the last three years. Fifty-one percent (51%) of federal contractors have decreased their inclusion efforts under regulatory pressure; conversely, a majority of organizations that are not federal contractors (52%) have increased their inclusion efforts.

Notably, most US organizations (80%) remain committed to workplace inclusion, even amid intense legal and cultural constraints that prevent companies from fully implementing these efforts.

"Despite a high-risk legal environment, our research shows that DEI is not dying—it is evolving,” said Joy Ohm, Vice President at Catalyst. “We see a majority of organizations adjusting their strategies, so this is a story of adaptation, not a broad rollback. Even in the face of a concerted assault on the values of inclusion and fairness, many organizations remain deeply committed to this work.”

For the new report, A new path to inclusion: How to overcome legal and cultural constraints on building fair workplaces, Catalyst and the Meltzer Center surveyed more than 2,000 employees and leaders from medium and large US organizations about how their workplace inclusion commitments have evolved in the last three years. This is the second time Catalyst and the Meltzer Center have joined forces to share solutions that HR, legal, and business leaders need in the current environment; last year’s report, Risks of retreat: The enduring inclusion imperative, found that most US business and legal leaders believe scaling back on inclusion initiatives increases legal, financial, talent, and reputational risk for corporations. 

Following the 2023 landmark Supreme Court decision in Students for Fair Admissions v. Harvard and the 2025 executive orders on DEI, organizations of all kinds have faced legal and political pressure to pull back from diversity-related programs.

According to the new report, however, the pressure is unevenly felt. More than half (51%) of federal contractors, who are facing more legal and regulatory scrutiny, reported decreasing inclusion efforts, while only 32% reported increasing inclusion efforts. By contrast, among organizations that are not federal contractors, 52% reported increasing inclusion efforts in the last three years, compared to only 20% that reported decreasing inclusion efforts.

“It’s been extremely challenging for organizations of all kinds to navigate the legal environment for DEI work over the past few years,” said David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion, and Belonging at NYU Law. "Yet we are seeing companies adopt nuanced approaches to inclusion based on their specific risk exposure. This survey suggests that the political and regulatory scrutiny faced by federal contractors is a stronger driver of DEI rollbacks than the legal environment more generally."

Organizations have signaled a retreat from inclusion efforts to a greater degree than they engaged in an actual substantive retreat. Over half (55%) of employees say their company signaled a public retreat from inclusion, but only 34% say it actually reduced work in this area. This finding suggests more inclusion work is happening behind the scenes than public narratives indicate.

“What organizations say publicly about their inclusion initiatives doesn’t always tell the full story,” said Christina Thomas, Project Director at the Meltzer Center for Diversity, Inclusion, and Belonging at NYU Law. “Some of the disconnect is intentional: organizations are responding to real legal and political pressure by changing their language and public posture. But the internal work is harder to undo. It’s embedded in people, processes, and culture in ways that don’t shift as quickly as a public statement. These findings indicate that the reality inside organizations is more complicated than the headlines suggest, and that matters for understanding where DEI actually stands.”

Despite the challenges of the current environment, a vast majority (80%) of employees and leaders said that their organization is still committed to diversity, fairness, and inclusion, and that it demonstrates such commitment through its actions.

A large majority (79%) of employees and leaders also feel positively about companies that are committed to inclusion efforts. Many (69%) are more likely to purchase products from companies that support inclusion efforts and 74% are more likely to apply for a job at a company that reaffirms support for inclusion.

“The legal and cultural attacks on inclusion are daunting, forcing organizations to reassess their strategies—but they haven't changed the fundamental math,” said Emily Shaffer, senior director at Catalyst. “Leaders and employees alike recognize that inclusive workplaces drive reputation, sales, and talent. This data proves that while the climate has shifted, the underlying commitment to the work remains unwavering."

Employees and leaders surveyed want inclusion efforts to benefit all employees while also prioritizing the needs of marginalized people—a seeming paradox that leaders committed to inclusion need to navigate.

The report provides a practical guide for organizations to move past legal hurdles and conflicting goals by using a strategy called “earned universalism.” This approach focuses on unifying people around what they have in common rather than focusing on separate groups. However, it suggests that an organization must first "earn" the right to focus on everyone equally by proving it is actively removing the specific barriers and biases that certain groups face along the way.

"While many leaders feel stuck in the current environment, they should know that a retreat is not necessary; there is a legal, popular, and effective path forward for inclusion—even for federal contractors,” added Glasgow. “By focusing on our three core recommendations, leaders can confidently advance their inclusion goals while overcoming today's cultural and legal constraints." 

This survey was fielded from January 13 to February 5, 2026, among 2,267 employees in medium and large organizations in the United States. Respondents answered a series of questions about their organizations’ inclusion efforts over the last three years, how these efforts have impacted key business outcomes, and their desired future direction for inclusion efforts. To ensure accurate responses, only respondents who indicated that their company had “diversity, equity, and inclusion” programs qualified to complete the survey. All analyses were performed using IBM SPSS version 30.

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Catalyst is a global nonprofit that has been the recognized expert at the forefront of women’s advancement and inclusion since the 1960s. Today, Catalyst accelerates organizational performance and women's progress through research-backed insights, high-impact convenings, proven solutions, and unparalleled support that fuel organizations to make inclusion a business practice at scale.

About the Meltzer Center

The Meltzer Center for Diversity, Inclusion, and Belonging at NYU School of Law offers rare expertise at the intersection of two fields: diversity, equity, and inclusion and the law. A research center at one of the world’s most diverse academic institutions, it aims to advance thought leadership on DEI and the law; support the NYU Law community; and share knowledge with external organizations, including through its Advancing DEI Initiative.