BBS:      TELESC.NET.BR
Assunto:  IBM to pay Feds $17 million
De:       Mike Powell
Data:     Wed, 15 Apr 2026 08:54:46 -0500
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The days of using federal funds to further discrimination are over: IBM to 
pay $17 million in first-of-its-kind Civil Rights Fraud Initiative settlement 
 Trump administration anti-DEI push seeks to strip businesses of inherently 
divisive policies

Date:
Tue, 14 Apr 2026 13:53:36 +0000

Description:
The first settlement claim under the Civil Rights Fraud Initiative will see 
IBM pay $17 million to the US government.

FULL STORY
IBM will pay $17 million in a settlement with the US government
The government alleged that IBM pursued discriminatory DEI policies
IBM said it was taking measures to remove DEI policies while also
denying it had any

IBM is set to pay over $17 million in a settlement after 
the Trump administration claimed the firm had discriminatory diversity, 
equity, and inclusion (DEI) policies. 

The settlement is the first successful claim made under the  Civil Rights 
Fraud Initiative , the US Department of Justice (DoJ) has claimed. The total 
payment includes civil penalties and $8.2 million in restitution to the 
government.  The Trump administration introduced the Civil Rights Fraud
Initiative in May 2025. The initiative allows the government to pursue 
federal funding recipients for damages and civil penalties by treating DEI 
policies as a false claim under the False Claims Act of 1863 . 

In its claim, the DoJ alleged that by failing to comply with 
anti-discrimination requirements in its federal contracts, IBM had therefore 
violated the False Claims Act. The DoJ explained that IBM had discriminated 
against employees during employment and applicants for employment because of 
race, color, national origin, or sex, and failed to treat employees during 
employment without regard to race, color, national origin, or sex. 

Alongside these claims, the DoJ also alleged that IBM made employment 
decisions by taking into account race, color, national origin, or sex and 
used a diversity modifier that tied bonus compensation to achieving 
demographic targets. 

Furthermore, the DoJ alleged that IBM developed race and sex demographic 
goals for business units and progressed these goals using DEI initiatives. 
The DoJ additionally claimed that IBM sought payment and reimbursement under 
its federal government contracts for the costs of the initiatives.

Speaking to Ars Technica , an IBM spokesperson said, "IBM is pleased to have
resolved this matter. Our workforce strategy is driven by a single principle: 
having the right people with the right skills that our clients depend on."

Confusingly, the settlement states that IBM has both ended the DEI 
initiatives it was accused of having, while also denying they ever took 
place. The settlement states that IBM is taking voluntary remedial measures, 
including the termination and/or modification of various programs, policies, 
or other activities described in the Covered Conduct, and then states, "IBM
denies that it engaged in the Covered Conduct."

The Trump administration has aggressively pursued the dismantling of DEI 
policies, with President Trump signing executive orders 14151 and 14173 
immediately following his inauguration in January 2025 - both of which sought 
to end the implementation of DEI policies by federal agencies and 
contractors. 

On the DoJ page for the Civil Rights Fraud Initiative, Deputy Attorney 
General Todd Blanche said, America has watched a tidal wave of anti-Semitism 
sweep our universities and seen public institutions codify inherently 
divisive policies like DEI at an unprecedented rate, adding that the days of 
using federal funds to further discrimination are over.

Link to news story:
https://www.techradar.com/pro/the-days-of-using-federal-funds-to-further-discr
imination-are-over-ibm-to-pay-usd17-million-in-first-of-its-kind-civil-rights-
fraud-initiative-settlement-trump-administration-anti-dei-push-seeks-to-strip-
businesses-of-inherently-divisive-policies

$$
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