On April 22, 2025, the U.S. Environmental Protection Agency (EPA) announced plans to terminate or reassign more than 450 employees involved in environmental justice and diversity, equity, and inclusion (DEI) initiatives. This move aligns with the Trump administration’s broader efforts to restructure federal agencies and reduce DEI programs.​

EPA Assistant Deputy Administrator Travis Voyles issued notices to staff within the Office of Environmental Justice and External Civil Rights, as well as regional employees working on environmental justice. The reduction in force will result in 280 employees being laid off and approximately 175 reassigned to other departments. These changes are part of the administration’s initiative to close the Office of Environmental Justice and External Civil Rights.​

The EPA stated that this action is necessary to align the workforce with the agency’s current and future needs, aiming to enhance the efficiency and effectiveness of its programs. However, critics argue that dismantling these offices could adversely affect disadvantaged communities that have historically faced higher levels of pollution and environmental hazards.​

Established in 1992 and expanded in 2022, the Office of Environmental Justice and External Civil Rights was designed to address environmental disparities affecting marginalized communities. The recent layoffs coincide with the removal of the agency’s environmental justice webpage and related resources, signaling a significant shift in the EPA’s focus and priorities.​

People walk past Target Store in Midtown Manhattan on March 6, 2025 in New York City, United States. Target CEO Brian Cornell met with the Rev. Al Sharpton in New York as the retailer faces calls for a boycott and a slowdown in foot traffic that began after it walked back key diversity, equity and inclusion programs, the civil rights leader told CNBC Wednesday.

Background on the Meeting

The meeting, which Target asked for, comes after some civil rights groups urged consumers not to shop at Target in response to the retailer’s decision to cut back on DEI. While Sharpton has not yet called for a boycott of Target, he has supported efforts from others to stop shopping at the retailer’s stores. “You can’t have an election come and all of a sudden, change your old positions,” Sharpton told CNBC in a Wednesday interview ahead of the meeting. “If an election determines your commitment to fairness then fine, you have a right to withdraw from us, but then we have a right to withdraw from you.”

Demands and Expectations

The civil rights leader said he would consider calling for a Target boycott if the company doesn’t confirm its commitment to the Black community and pledge to work with and invest in Black-owned businesses. “I said, ‘If [Cornell] wants to have a candid meeting, we’ll meet,'” Sharpton said of the phone call Target made to his office. “I want to first hear what he has to say.” A Target spokesman confirmed to CNBC that the company reached out to Sharpton for a meeting and that Cornell will talk to him in New York this week.

Aftermath of the Meeting

On Thursday afternoon, Sharpton issued a statement after the meeting, calling it “constructive and candid.” “I am going to inform our allies, including Rev. Dr. Jamal Bryant, of our discussion, what my feelings are, and we will go from there,” said Sharpton. Bryant, a pastor in the Atlanta area, organized a 40-day boycott of Target that began in early March. The pastor has weighed whether to extend it and Sharpton had considered taking the boycott national.

Impact on Target

In January, Target said it would end its three-year DEI goals, no longer share company reports with external diversity-focused groups like the Human Rights Campaign’s Corporate Equity Index and end specific efforts to get more products from Black- and minority-owned businesses on its shelves. Just days after the announcement, foot traffic at Target stores started to slow down. Since the week of Jan. 27, Target’s foot traffic has declined for 10 straight weeks compared to the year-ago period, according to Placer.ai, an analytics firm that uses anonymized data from mobile devices to estimate overall visits to locations.

Wider DEI Retreat

With its decision to roll back DEI efforts, the cheap chic retailer Target joined Walmart, McDonald’s, Tractor Supply and a slew of others that scrapped at least some DEI initiatives as they grew concerned that the programs could alienate some customers or land them in the crosshairs of President Donald Trump, who has vowed to end every DEI program across the federal government. Target’s decision contrasted with Costco, which shook off pressure from conservative activists to maintain its DEI programs.

Comparison with Other Companies

In the month of March, Target’s store traffic declined 6.5%, while the metric rose 7.5% year over year at Costco, Placer.ai data show. Target’s challenges run deeper than DEI backlash, and resistance to its policy change only added to its issues. The discounter’s annual revenue has been roughly flat for four years in a row as it’s struggled to drive consistent sales gains.

Questions and Commitments

In his meeting with Cornell, Sharpton said he will ask for Target to follow through on pledges it made after police killed George Floyd in the company’s hometown of Minneapolis. “You made commitments based on the George Floyd movement … what changed?” said Sharpton. “Are you trying to say … everything’s fine now, because the election changed? That’s insulting to us.” In the wake of Floyd’s murder, Cornell said the event moved him.

Conclusion

The meeting between Target CEO Brian Cornell and the Rev. Al Sharpton marks a significant moment in the ongoing debate over diversity, equity, and inclusion programs in corporate America. As companies face pressure from both sides, they must navigate complex issues of social responsibility, customer expectations, and bottom-line concerns. The outcome of this meeting and the subsequent actions of Target and other companies will be closely watched, as they have the potential to impact not only the companies themselves but also the broader social landscape.

FAQs

Q: What prompted the meeting between Target CEO Brian Cornell and the Rev. Al Sharpton?
A: The meeting was prompted by Target’s decision to roll back its diversity, equity, and inclusion (DEI) programs, which led to calls for a boycott and a slowdown in foot traffic at Target stores.

Q: What did Sharpton say about Target’s decision to end its DEI goals?
A: Sharpton expressed disappointment and frustration, stating that Target’s decision was insulting and suggested that the company was abandoning its commitments to the Black community.

Q: How has Target’s foot traffic been affected since the announcement?
A: According to Placer.ai, Target’s foot traffic has declined for 10 straight weeks compared to the year-ago period, with a 6.5% decline in March.

Q: How does Target’s decision compare to other companies?
A: Target’s decision to roll back DEI efforts is part of a wider trend, with companies like Walmart, McDonald’s, and Tractor Supply also scaling back their DEI initiatives. However, companies like Costco have maintained their commitment to DEI programs.

Q: What is the potential impact of the meeting between Cornell and Sharpton?
A: The meeting could lead to Target reaffirming its commitment to DEI programs or facing further backlash, including a potential boycott. The outcome will be closely watched, as it has implications for the company, its customers, and the broader social landscape.

The Minority Business Development Agency, the only federal agency solely focused on the growth of minority-owned businesses, has undergone a significant reduction in operations. In March 2025, the Continuing the Reduction of the Federal Bureaucracy executive order mandated that nearly all of its roughly 50 employees received Reduction in Force notices. The remaining five career employees received reassignment to other agencies on Wednesday April 9, 2025 leaving the agency to be staffed by one political appointee. While the agency remains statutorily authorized, this shift effectively guts the agency and ensures its dormancy.

This marks a major change in the federal government’s engagement with minority business enterprises, a sector that has historically faced structural barriers to capital, contracts, and market access.

A Legacy Of Impact

Established by Executive Order in 1969 and codified by Congress in 2021, the MBDA operated for more than five decades as the federal government’s primary resource for minority business development. According to its FY 2024 Annual Performance Report, the agency helped facilitate over $5.6 billion in capital, contracts, and export deals for minority-owned businesses and contributed to the creation or retention of over 22,000 jobs.

Through a network of more than 47 business centers, MBDA provided technical assistance to African American, Latino, Asian American, Pacific Islander, Native American, and Hasidic Jewish entrepreneurs. The agency also partnered with Historically Black Colleges and Universities (HBCUs), tribal colleges, chambers of commerce, and trade associations to expand outreach and service delivery.

Federal Statute And Sudden Scale-Back

The Consolidated Appropriations Act of 2021 made MBDA a permanent federal agency, granting expanded authority to establish regional offices, enter cooperative agreements, and conduct research on economic disparities. While this statute affirms MBDA’s long-term mission, the recent staffing reductions raise questions about its capacity to fulfill these responsibilities in practice.

Although the agency remains authorized, the reduction to a core staff—now also subject to RIF—marks a significant limitation in federal support infrastructure for MBEs.

Impact On Business Networks And Supplier Diversity

There are more than 9.9 million minority-owned businesses in the U.S., generating over $1.8 trillion in annual revenue and employing 8.9 million workers. According to the Federal Reserve, these businesses are more likely to be denied financing or offered less favorable terms than their white-owned counterparts. MBDA played a vital role in helping businesses navigate these inequities.

The agency also served as a key federal partner in advancing supplier diversity. It worked in close coordination with the National Minority Supplier Development Council (NMSDC) and co-hosted the annual Minority Enterprise Development (MED) Week—a signature event convening policymakers, corporations, and business leaders to celebrate and support MBEs. Due to the agency’s recent restructuring, MED Week has been cancelled for 2025 with no clear directive for future reengagement.

A Shift In The Minority Business Ecosystem

MBDA’s partnerships with regional development organizations, supply chains, and nonprofit intermediaries helped shape a national framework for minority business support. Its contraction leaves a gap in coordination, data, and federal investment that previously supported equitable economic development.

As the agency’s future remains uncertain, stakeholders across government, philanthropy, and the private sector may face greater pressure to meet the needs of diverse entrepreneurs. This shift could prompt reassessments of how technical assistance, capital access, and procurement opportunities are delivered. Meanwhile, evolving federal policy and mounting DEI rollbacks in the corporate sector may lead to further scale-backs—leaving the future of supplier diversity in limbo.

For over 50 years, MBDA helped expand economic participation for communities historically excluded from traditional business pathways. Its reduction marks a critical inflection point—not just for the agency, but for the broader pursuit of inclusive economic growth.

Conclusion

The reduction of the Minority Business Development Agency marks a significant change in the federal government’s engagement with minority business enterprises. The agency’s legacy of impact and its sudden scale-back have raised concerns about the future of supplier diversity and the support infrastructure for minority-owned businesses. As the agency’s future remains uncertain, stakeholders must reassess how to meet the needs of diverse entrepreneurs and ensure equitable economic development.

Frequently Asked Questions

Q: What is the Minority Business Development Agency (MBDA)?
A: The MBDA is a federal agency that provides support and resources to minority-owned businesses.

Q: Why was the MBDA reduced?
A: The reduction was a result of the Continuing the Reduction of the Federal Bureaucracy executive order, which mandated Reduction in Force notices for nearly all of the agency’s employees.

Q: What impact will the reduction have on minority-owned businesses?
A: The reduction may limit access to capital, contracts, and market access for minority-owned businesses, which have historically faced structural barriers to these resources.

Q: What is the future of the MBDA?
A: The agency remains statutorily authorized, but its future is uncertain due to the significant reduction in staff and resources.