In August's Trendline report, we highlight how major policy shifts are colliding: AI executive actions are encouraging innovation, federal enforcement is zeroing in on DEI programs, and new workforce efforts are connecting education directly to employer needs. At the same time, the SEC’s AI task force signals regulators are embracing AI tools, while shareholders—rejecting anti-DEI proposals totaling over $13 trillion—are reaffirming their support for diversity despite changing federal priorities.
In August's Trendline report, we highlight how major policy shifts are colliding: AI executive actions are encouraging innovation, federal enforcement is zeroing in on DEI programs, and new workforce efforts are connecting education directly to employer needs. At the same time, the SEC’s AI task force signals regulators are embracing AI tools, while shareholders—rejecting anti-DEI proposals totaling over $13 trillion—are reaffirming their support for diversity despite changing federal priorities.
Together, these shifts demand careful attention from business leaders navigating an environment where technology, regulatory enforcement, and workforce development are tightly entwined with political and stakeholder priorities.
Workforce
Trump Administration Seeks to Align Education Programs with Workforce Needs
The Trump Administration is seeking to drive workforce development by connecting the education system to the skills employers need. To make this a reality, the U.S. Departments of Labor and Education, have launched an initiative to create a more coordinated federal education and workforce system. Under this partnership, the Labor Department will help administer adult education and career and technical education programs, while the Department of Education retains overall oversight.
This initiative aligns with Executive Order (EO) 14278,Preparing Americans for High-Paying Skilled Trade Jobs of the Future, and EO 14242, Improving Education Outcomes by Empowering Parents, States, and Communities, reflecting the administration’s goal to return authority to states, reduce administrative burdens, and build a seamless system supporting youth and adults in accessing training and education for high-wage, high-demand careers.
DOJ Issues Guidance on Illegal Discrimination & Memo on Civil Enforcement Priorities
The Department of Justice (DOJ) issued a press release on July 30, highlighting a memorandum from Attorney General Pam Bondi to federal agencies reaffirming the federal government's commitment to enforcing nondiscrimination laws while cautioning that diversity, equity, and inclusion initiatives must not violate existing legal standards. Framed as a clarification of existing anti-discrimination laws, the directive highlights DOJ's intensified scrutiny of DEI programs, signaling a readiness to pursue enforcement actions against federal contractors and grant recipients it perceives as engaging in discriminatory practices.
This guidance aligns with ongoing efforts under EO 14173,"Ending Illegal Discrimination and Restoring Merit-Based Opportunity," reflecting broader governmental priorities to ensure fairness and legal compliance across public institutions.
Attorney General Bondi’s guidance comes on the heels of aJune memorandum from Assistant Attorney General Brett Shumate outlining the Civil Division's updated enforcement priorities, including combating discriminatory practices and policies, ending sanctuary jurisdictions, ending antisemitism, protecting women and children, and prioritizing denaturalization.
With the potential of heightened enforcement from DOJ, organizations should proactively assess their compliance frameworks to navigate this evolving landscape, particularly reviewing DEI programs and policies for legal soundness while preparing for potentially expanded False Claims Act across various operational areas.
Technology
Trump Administration Prioritizes AI Growth
& Targets “Woke AI” in Federal Systems
The Trump Administration is going all in on artificial intelligence. On July 23, the White House released Winning the Race: America’s AI Action Plan, a national directive aimed at “asserting U.S. dominance” in artificial intelligence by removing regulatory barriers, boosting domestic production capacity, and aligning national security priorities with AI innovation. The plan emphasizes deregulation, infrastructure expansion, and the mobilization of both federal and private-sector resources to accelerate technological leadership.
Concurrent with the drop of the AI Action Plan, President Trump also signed three executive orders outlining a coordinated approach to advancing infrastructure, extending U.S. technological leadership, and defining the principles guiding federal AI systems - principally focused on rooting out “Woke AI.”
Taken together, these actions illustrate the Administration’s goal of not only accelerating domestic AI capacity but also influencing the global AI ecosystem. However, their ambitious scope invites questions about how effectively such policies can be implemented, the balance between strategic advantage and open collaboration, and the long-term implications for innovation, governance, and international alignment.
Trendline’s overviews break down the latest executiveactionsand highlight key implications.
EO 14319, Preventing Woke AI in the Federal Government, mandates that all federal AI systems operate with ideological neutrality, requiring prompt engineering and system design to focus on factual accuracy and exclude politically biased or agenda-driven content.
Building on President Trump’s American AI Action Plan and AI executive orders, the Securities and Exchange Commission (SEC) announced the formation of an artificial intelligence task forceto promote innovation and improve operational efficiency, led by newly appointed Chief AI Officer Valerie Szczepanik. Formerly the director of the SEC’s FinHub, Szczepanik brings deep expertise in financial technology and crypto oversight to the role. The task force will centralize AI initiatives across the agency, remove barriers to adoption, and accelerate responsible AI integration to advance the SEC’s mission.
According to SEC Chairman Paul Atkins, the effort is intended to equip staff with AI-enabled tools, boost innovation, and enhance both accuracy and efficiency in carrying out the agency’s regulatory duties. While the initiative signals the SEC’s commitment to leveraging technology in oversight, it also invites questions about how AI-tools will impact SEC decision-making and enforcement efforts.
$13 Trillion in Shareholder Value Rejects Anti-DEI Proposals
Shareholders of 30 major corporations, collectively valued at more than $13 trillion, have overwhelmingly rejected anti-DEI proposals during the 2025 proxy season, delivering a decisive setback to conservative activist groups aiming to dismantle diversity, equity, and inclusion initiatives, according to Impactivize.
Despite a surge in efforts to scale back DEI programs, investors remain largely unconvinced. The majority of shareholders continue to stand firm voting to uphold DEI initiatives rather than dismantle them.
Trendline Updates
In our new series, Trendline Talks, we break down how key legal and policy developments impact business —showing you what they mean for your strategy, stakeholders, and bottom line. Whether you lead a Fortune 500 company, a growing nonprofit, or a mission-driven startup, you’ll find clear insights to help you make better decisions in a complex world.
You can catch the latest on YouTube and Instagram—find us @TrendlineStrategies.
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