The Subcommittee on Health Care and Financial Services conducted a hearing titled “Sacrificing Excellence for Ideology: The Real Cost of DEI,” addressing the implications of diversity, equity, and inclusion (DEI) initiatives. During the session, members expressed concerns that DEI practices encouraged by Democrats contribute to division, silence differing opinions, undermine excellence, and reinforce racism and sexism.
Subcommittee Chairman Glenn Grothman (R-Wis.) opened with remarks stating that DEI policies have “evolved and infiltrated nearly every type of institution in America,” including education and workplaces. He argued these policies divide Americans by grouping them rather than encouraging individualism.
Dr. Judge Glock from the Manhattan Institute highlighted two race contracting programs—8(a) Program and Disadvantaged Business Enterprise Program—that prioritize minority-owned businesses in federal contracts. He noted concerns about fraud within these programs due to the substantial financial stakes involved.
Dr. Erec Smith from The Cato Institute critiqued DEI as a sprawling ideology that replaces education with political conditioning. While supporting racial equality in principle, he warned against current DEI practices rooted in Marxist critical theory.
Dan Lennington from the Wisconsin Institute for Law and Liberty suggested reforms to federal laws to eliminate benefits based on race while advocating increased funding for agencies enforcing civil rights laws.
During member discussions, Subcommittee Chairman Grothman questioned how self-identification impacts Affirmative Action policies. Rep. Paul Gosar (R-Ariz.) explored the origins of modern DEI practices and their legal implications under the Civil Rights Act.
Rep. Brandon Gill (R-Texas) engaged Dr. Shaun Harper regarding race considerations in hiring practices, where Dr. Harper emphasized reflecting America’s diversity without preferring a single race.
The hearing provided varied perspectives on DEI’s impact across sectors while underscoring ongoing debates about its role in achieving equality.



