Sacrificing Excellence for Ideology: The Real Cost of DEI

House Subcommittee on Health Care and Financial Services

2025-06-25

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Source: Congress.gov

Summary

This meeting of the Subcommittee on Healthcare and Financial Services focused on the impact and implications of Diversity, Equity, and Inclusion (DEI) policies in American institutions, particularly in higher education, corporate workplaces, and government contracting. The discussion explored the historical origins and evolution of affirmative action and DEI, with starkly contrasting views on their effects and necessity [ 00:24:38-00:25:04 ]

. Witnesses and committee members debated whether these policies promote fairness and address systemic inequalities or, conversely, foster division and undermine meritocracy [ 00:29:03-00:29:11 ] [ 00:34:28-00:34:45 ] .

Themes

The Destructive Nature and Illegality of DEI Policies

Several speakers argued that DEI policies are destructive and illegal, contributing to discrimination and divisiveness rather than addressing it [ 00:24:38-00:25:54 ]

. DEI treats individuals as members of racial groups, aiming for "racial balancing," which has been deemed unlawful by the Supreme Court [ 00:34:28-00:34:45 ] . This approach prioritizes ideology over excellence, leading to situations where highly qualified individuals are denied opportunities in favor of those from preferred groups, such as in university admissions or government contracts [ 00:27:31-00:27:45 ] . Critics asserted that the concept of "equity," ensuring equal outcomes, is Marxist and intentionally divisive, setting groups against each other . The policies are seen as undermining academic rigor, penalizing dissent, and promoting the notion that minority students are "too fragile" for challenging ideas, ultimately hindering intellectual growth [ 00:40:20-00:40:33 ] . Furthermore, DEI in government contracting was highlighted as expensive, prone to fraud, degrading infrastructure and national defense, and failing to genuinely help the disadvantaged [ 00:43:48-00:43:59 ] .

DEI as a Necessary Tool for Addressing Systemic Injustice

Conversely, proponents of DEI argued that these policies are essential to redress historical and ongoing systemic inequalities . They emphasized that America has a history of racism, evidenced by the denial of GI Bill benefits to Black veterans, housing discrimination, and disproportionate health outcomes for people of color [ 01:12:40-01:13:46 ]

. The economic benefits of diversity were underscored, citing studies showing that diverse teams make faster and better decisions, and companies with more diverse leadership outperform others . It was argued that DEI aims to level the playing field, ensuring everyone can compete and achieve excellence, rather than giving unfair advantages [ 00:29:03-00:29:11 ] . Speakers highlighted the "real costs of inequity," such as significantly higher maternal mortality rates for Black and Indigenous women and billions lost in GDP due to racial gaps in health and education . These disparities, it was contended, demonstrate the continued need for proactive measures like DEI.

Political and Procedural Critiques of the Hearing

The hearing itself faced criticism for deviating from the subcommittee's stated jurisdiction of healthcare and financial services [ 00:28:14-00:28:18 ]

. The Ranking Member argued that the discussion on DEI was a "distraction" from critical issues like Medicaid cuts and the "large, lousy law" impacting health and housing assistance [ 00:28:22-00:28:58 ] . Democratic members accused the Republican majority and the Trump administration of "lurching from the farcical to the cruel" in their anti-DEI efforts, citing actions such as threatening historical monuments, making unqualified appointments, and eliminating an LGBTQ youth suicide hotline that had bipartisan support . This stance was characterized as a "coordinated effort" to push America back to a segregated society, driven by a "fear of a multiracial and multicultural democracy" . The Chair, in turn, defended the hearing's topic by stating that DEI intentionally fosters division and attempts to destroy the country by promoting the idea of a racist society .

Tone of the Meeting

The tone of the meeting was highly contentious and deeply polarized [ 00:28:08-00:28:18 ]

. There was a clear ideological divide between members, with frequent accusations of misunderstanding, misrepresentation, and hypocrisy from both sides . Emotional appeals were common, particularly from Democratic representatives who spoke about personal experiences with racism and the impact of discriminatory policies . Interruptions and heated exchanges, especially during witness testimony and questioning, marked the session [ 01:17:21 ] [ 01:17:35 ] [ 01:17:54 ] . The Ranking Member expressed disappointment that the subcommittee was not engaging in bipartisan oversight on its mandated topics, suggesting a breakdown in civil dialogue and unity [ 01:46:25-01:48:04 ] .

Participants

Transcript

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Dr. Erec Smith, Ph.D.
Without objection, the chair may declare a recess at any time.  I recognize myself for the purposes of making an opening statement.  But before I do that, just a little bit of house cleaning.  I'm going to ask that Congresswoman Beth Van Dyne and Congressman Scott Perry be allowed to sit in here.  And they both expressed an interest in showing up, and of course, the more the merrier.   Okay, now welcome to the Subcommittee on Healthcare and Financial Services.  Today's hearing will focus on the destructive diversity, equity, and inclusion, or DEI policies that radical Democrats have tried to insert in American institutions, and really going back a little bit more than that, all the way back to affirmative action and the executive order put into place by President Johnson in 1965.  I think it's important we all understand the effect and the scope   of these policies have had on American life the last 60 years.  On September 24th, 1965, we gotta remember to celebrate that anniversary, almost 60 years ago, Lyndon Johnson signed Executive Order 11246, which mandated affirmative action programs and policies which facilitated discrimination.  In 1965, minority groups,   had faced a generation of despicable and repugnant discrimination, though I know individual universities were already practicing affirmative action 10 years before that.  I know Princeton was practicing in 1955.  At the time, these nation DEI policies were nobly aimed at reversing that harm.  Unfortunately, even well-intentioned bad policy is still bad policy.  Discrimination should never be fought with more discrimination.   That is exactly what affirmative action and DEI policies have done over the last 60 years.  These policies have infiltrated nearly every type of institution in America, including higher education, corporate workplaces, the military, and more.