Trump’s DEI battle impacts nonprofits managing labor gaps

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    CHICAGO — Efforts to recruit more women into the construction industry have gained significant momentum, with support surfacing across bipartisan lines and from within the industry itself due to continuous labor shortages. However, recent moves by former President Donald Trump to dismantle diversity and inclusion (DEI) initiatives may obstruct community organizations vital to this progress.

    The Trump administration quickly terminated federal funding for many community groups, including those that manage apprenticeship programs for women, conduct anti-harassment training, and provide necessary support like child care and transportation for workers. These changes follow two executive orders aimed at cutting “equity-related” grants and mandating federal contractors and fund recipients to certify they do not operate DEI programs allegedly breaching anti-discrimination laws.

    The transportation and construction sector are notably affected, with numerous corporations, universities, law firms, and philanthropies scrambling to adjust their DEI policies to avoid losing their federal funding. For nonprofit organizations serving marginalized communities, these executive orders pose a significant existential threat, leading to multiple legal challenges against the administration.

    The construction industry eagerly watches litigation initiated by the Chicago Women in Trades, founded in 1981 to facilitate women’s entry into skilled trades. The organization and others like it face uncertainty after federal funding was revoked. Approximately 40% of Chicago Women in Trades’ funding is provided by the federal government, and as legal battles continue, the organization’s executive director Jayne Vellinga expressed concerns over halted hiring and future programming.

    A recent training session held by Chicago Women in Trades at the Ironworkers Local 63 training center exemplifies the initiative’s impact. Around two dozen women, equipped with safety gear, engaged in hands-on training sessions essential for skill development. These programs enable approximately 70% of participants to progress into apprenticeships, offering career paths previously perceived as inaccessible. Sam Barraza, a participant and nonbinary individual, emphasized the program’s crucial role in their newfound excitement for a career in construction.

    Efforts to enhance workforce diversity have been substantial, with billions invested by government agencies, construction firms, and labor unions to expand apprenticeships and similar initiatives. This push coincides with increased federal investment in infrastructure projects under the Biden administration. These initiatives aim to foster a more inclusive work environment, moving beyond the historically homogeneous nature of the construction field.

    The proportion of women in skilled trades stands at just 4%, but this figure signifies a nearly 30% increase since 2018, reaching a record high. This progress is heralded by both women’s advocacy organizations and industry agents, as recruiting more women and minorities mitigates labor shortages while simultaneously addressing wage gaps.

    Under Trump’s first presidential term, Chicago Women in Trades received grants via the Women in Apprenticeship and Nontraditional Occupations (WANTO) program, a federally funded initiative originating from a 1992 Congressional act. Although funding initially increased under Trump, the Biden administration further boosted it, awarding nearly $18 million in grants. However, the future of WANTO remains uncertain following recent notices of grant terminations.

    Rescinding funding impacts various organizations, such as Vermont Works for Women, threatening newly planned apprenticeship programs within semiconductor manufacturing. Despite a temporary court order protecting Chicago Women in Trades’ WANTO grant, the situation remains dire for organizations nationwide, uncertain of their future funding.

    The Labor Department has not clarified intentions concerning WANTO, casting doubts over ongoing and future projects. In a 2026 budget request, Trump proposed continued investment in apprenticeship expansions but shifted funding strategies towards state and local management. His administration argues that DEI policies may impose unfair hiring practices.

    Other organizations, like the Maryland Center for Construction Education & Innovation, express concern over discontinued federal funding, jeopardizing programs critical in fields experiencing labor shortages. They stress the tangible impact of missing these opportunities, which translate into hamper economic and community growth.

    The industry’s demand for skilled workers remains high, with Jessica Jester, Director of Community and Citizenship for Turner Construction in Ohio, emphasizing the necessity of leveraging all available talent sources. Turner Construction and other firms have partnered with initiatives like Chicago Women in Trades to introduce the next generation to construction work, crucial for sustaining industry growth.

    The urgency of these efforts is underscored by Turner Construction’s involvement in the “Culture of Care” program, designed to eliminate workplace harassment and bias. Although prompted to review its DEI guidelines following Trump’s executive orders, the Associated General Contractors of America remains committed to creating a discrimination-free environment to retain more women and minorities in the sector.

    As organizations across the country work to navigate legal and legislative avenues to counteract federal policy changes, the construction industry stands at a crossroads, balancing compliance with a commitment to inclusivity and workforce diversity essential for future viability.