Financial Titans Across 17 States Unite with Kimberly Yee to Challenge Corporate DEI Policies

By Matthew Holloway |

Financial leaders from 17 states, including 13 State Treasurers, one Commissioner of Revenue, and three state auditors, have jointly challenged members of Congress to reconsider their support for Diversity, Equity, and Inclusion (DEI) policies among Fortune 1000 companies. The group, led by Arizona Treasurer Kimberly Yee, issued a letter expressing their concerns about the financial implications of these policies.

In the correspondence, the officials stated, “We the undersigned are state financial officials responsible for state investment vehicles that hold ownership positions in your companies. We write concerning recent calls from Congressional members that your companies reaffirm their commitments to Diversity, Equity, and Inclusion (DEI).” They argued that these policies may not necessarily contribute to a company’s financial health, contrary to claims that they “benefit employees, customers, and the bottom line.”

Yee’s response comes after a coalition of Democrat politicians urged Fortune 1000 companies to adopt DEI agendas, claiming that such programs foster a culture of equality and enhance competitiveness, as reported by the Daily Wire. The financial officials firmly rejected these assertions, advocating for a removal of DEI initiatives.

Jeremy Tedesco, Senior Vice President of Corporate Engagement at Alliance Defending Freedom, commented on the issue, stating that many of America’s major companies have already pulled back on DEI strategies. “Businesses should listen to their employees, customers, and shareholders, rather than politicians,” he emphasized, urging firms to abandon DEI principles entirely.

The letter referenced studies from sources like Econ Journal Watch and Harvard Law School Forum on Corporate Governance, which challenge the notion that DEI efforts enhance corporate performance. They noted that the authors of the Econ Journal Watch article found the results of previous McKinsey studies questionable, indicating they should not be used to justify the view that diversity among executives leads to better financial outcomes.

The officials highlighted findings from a New York Times article, which examined the backlash against DEI programs at the University of Michigan. The piece described students reacting negatively to the program, citing it as “shallow” or “stifling.” Many expressed frustration over the excessive focus on identity and perceived grievances, rather than fostering genuine inclusion.

Moreover, Michigan’s internal surveys suggested that the implementation of DEI initiatives may have had a detrimental effect on the campus climate, reducing students’ sense of belonging and their willingness to engage with individuals from different backgrounds.

The letter concluded with a reference to a recent Ipsos survey conducted by Freedom at Work, revealing that 40% of respondents believe DEI policies actually create divisions in the workplace. This sentiment echoes Chief Justice Roberts’ assertion that, “The way to stop discrimination on the basis of race is to stop discriminating on the basis of race.” The financial officials warned that race-based theories inherent in DEI programs contradict constitutional ideals of equality.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.