The University of Michigan, long considered a national leader in diversity, equity, and inclusion (DEI) initiatives, has abruptly shut down its flagship DEI office and strategic plan—just months after investing over $250 million into the effort. The decision, which follows executive orders from former President Donald Trump and a federal advisory from the U.S. Department of Education, has sparked widespread debate and speculation about whether this is the death of DEI in higher education—or merely a rebrand designed to skirt the rules.
At the center of the controversy is a single word: “diversity.” For nearly a decade, the university’s DEI strategy was the gold standard, credited with boosting enrollment of first-generation students and underrepresented groups. But with the federal government now threatening to withdraw funding from institutions promoting what it calls “racially discriminatory” practices, Michigan officials have made a calculated pivot—scrubbing the DEI label while continuing many of its programs under new terminology.
So is this a smart survival tactic or a quiet retreat from inclusive values? Let’s break down what happened, what’s changing, and what it means for the future of campus equity in America.
What Triggered the Sudden DEI Shutdown?
Just a few years ago, DEI offices were expanding across the country. Now, they’re being dismantled. And the driving force behind this reversal? Politics—and the power of federal purse strings.
Trump Administration’s Executive Order
While President Trump is no longer in office, the recent executive orders issued by his political network and loyalists within federal agencies have reignited the war on DEI. These orders declare that federally funded institutions promoting diversity, equity, and inclusion—particularly programs perceived to favor race- or gender-based identity—are engaging in discriminatory practices.
The directive is blunt: shut down DEI or risk losing millions in federal funding.
For major public universities like Michigan, which rely heavily on research grants and student aid from Washington, that threat is more than symbolic—it’s existential.
Department of Education Advisory
Adding fuel to the fire, the Department of Education recently issued new advisories that clarify how colleges must now interpret federal anti-discrimination laws. These advisories specifically warn institutions against running programs that “prioritize identity characteristics” or use race as a determining factor in scholarships, admissions, or hiring.
That guidance, say legal experts, leaves little wiggle room. If a university wants to stay compliant, it must “eliminate or restructure” programs that fall under the DEI umbrella—even if the outcomes have been overwhelmingly positive for student inclusion.
That’s exactly what the University of Michigan has now done—at least in name.
DEI at the University of Michigan: A $250 Million Legacy
Few institutions have invested in DEI like Michigan has. Since 2016, the university has poured more than a quarter-billion dollars into building a campus that reflects the diversity of the state and the country. The results were impressive—but ultimately not enough to withstand federal pressure.
The Origins of DEI 1.0 and 2.0
The DEI 1.0 initiative began under former President Mark Schlissel with lofty goals: increase access, foster an inclusive climate, and diversify the faculty. In 2023, the program entered its second phase—DEI 2.0—with even more ambitious benchmarks and an expanded budget.
This wasn’t just lip service. The university created entire departments, hired hundreds of staff, and implemented sweeping programs that touched every college and administrative unit on campus.
Results of the DEI Initiative
So what did all that investment achieve?
- A 46% increase in first-generation undergraduates in just a few years.
- A 32% rise in Pell Grant recipients, indicating greater access for low-income students.
- Dozens of new scholarships, mentorship programs, and community-building events aimed at marginalized students.
In the eyes of many students and faculty, the DEI program didn’t just check boxes—it changed lives. But the federal crackdown has forced the university to rethink how it presents this work to the world.
