A federal commission voted Tuesday in favor of a Trump administration proposal to rescind requirements that larger employers report the demographics of their workers — information that’s used to help enforce racial and gender antidiscrimination laws.

Most employers with 100 or more workers have been required to submit data annually on staff sex, race and ethnicity since 1966 to the U.S. Equal Employment Opportunity Commission. Earlier this summer, the administration submitted a proposed rule that would eliminate that reporting requirement for companies as well as for state and local governments. 

The EEOC contends that demographics reporting requirements place an “impermissible focus on ‘minorities’ and women.” The commission argues the forms “may encourage employers to discriminate against employees who are not considered ‘minorities.’” The proposed rule will be posted to the Federal Register for a public comment period of 30 days, and a public hearing will be held Aug. 11, with requests to testify due Aug. 7.

Bloomberg Law reported that the commission voted 2-1 along party lines to advance the plan.  

Since President Donald Trump took office, the administration has been focused on eliminating diversity, equity and inclusion initiatives. The new proposal, if finalized, would roll back federal oversight and limit employer transparency, experts say. 

If the federal requirements end, states might step in to create their own requirements, said Alexandra Garrison Barnett, a partner at the law firm Alston & Bird in Atlanta, Georgia.

“We might see more states imposing those kinds of requirements in the absence of a federal requirement, or we could see states banning or prohibiting employers from collecting (demographic information),” said Barnett, a labor and employment attorney who helps employers evaluate their DEI policies and strategies.

A handful of states already have requirements that employers collect and report on workplace demographic information, she noted. 

The commission’s vote comes on Black Women’s Equal Pay Day. Tuesday marks how far into the year Black women must work to equal the average pay earned by a white man by the end of the previous year.

The lack of demographic data will hinder accountability for employers, said labor economist Valerie Rawlston Wilson, director of the Economic Policy Institute’s Program on Race, Ethnicity, and the Economy.

“(The proposal) is consistent with the general anti-equity push of this administration to eliminate pretty much all of the infrastructure that have been in place for equal employment in this country,” Wilson said. “We have laws in place that prohibit discrimination, but the effectiveness of those laws is really dependent on our ability to enforce those laws. And the enforcement of those laws is facilitated by having consistent reliable data.”

The Institute for Women’s Policy Research reports that Black women make 64 cents for every dollar paid to white men — across all education levels and positions, including leadership positions. 

Broken down by state, the gap widens: In Idaho, for example, Black women make 36 cents for every dollar white men make, across all workers with earnings.

The rule, Wilson said, would “severely hinder the ability of the EEOC to carry out its enforcement responsibilities.”

Stateline reporter Nada Hassanein can be reached at nhassanen@stateline.org.

The Federal Emergency Management Agency’s guidelines to states on how to request funding under counterterrorism grant programs include potentially illegal demands related to election administration, Democrats on the U.S. House Homeland Security Committee said Thursday.

The Department of Homeland Security, which includes FEMA, sent states last month notices of available federal funding for non-disaster grants under the Homeland Security Grant Program, the Nonprofit Security Grant Program and the Transit Security Grant Program.

Those notices included “blatant attempts to force communities to comply with the Trump administration’s political demands” or risk losing $200 million in federal funds, the letter said.

“As we approach the 25th anniversary of September 11th, it is deeply alarming that DHS and FEMA, under Donald Trump, continue to manipulate the very funding born out of a national tragedy,” they wrote. “Playing political games with counterterrorism funding undermines public safety and deprives first responders of the resources they need to do their jobs.”

The panel’s 15 Democrats, led by ranking member Bennie Thompson of Mississippi, signed the letter to Homeland Security Secretary Markwayne Mullin and acting FEMA Administrator Robert Fenton.

Spokespeople for DHS, FEMA and the committee’s Republicans did not immediately return messages seeking comment late Thursday. A White House spokesperson referred a request for comment to DHS.

SAVE computer system

The department is withholding up to 20% of the programs’ congressionally appropriated grant funding unless states and cities update their election laws, the Democrats wrote. The administration wants states to use the department’s powerful SAVE computer system to verify the citizenship of every voter, among other demands, the letter said.

The department also continues to retain more than $600 million in 2025 funding, the lawmakers said.

Some of the administration’s demands are unworkable or illegal under federal court decisions or state law, they said.

For example, two days before the notice went to states, a federal judge ruled that states could not use the SAVE system to check voter eligibility.

“It is unclear how or why DHS and FEMA published (notice of funding opportunity) guidance that would deliberately conflict with a court ruling,” they wrote. “To date, FEMA has not provided a revised (notice) that complies with court orders on the use of the SAVE system.”

‘Costly and impossible’ for states

Several requirements, demanded barely five months before midterm elections in November and one month before grant applications are due, “are costly and impossible to achieve on the unrealistic timeline dictated by the administration,” the letter said.

Other criteria were unclear, such as a requirement to “reconcile voters and ballots using a methodology the Secretary has not disclosed,” the Democrats wrote. The department has also not said how post-election manual audits must be conducted.

The lawmakers asked the administration to revert to 2024 guidance, which would remove confusion about the grant programs’ requirements and their legality, release materials that informed the department’s decision to tie the grant funding to election security and to immediately release all holds “explicit or de facto” on last year’s grants.

Constitutional mandate 

The changes would “very likely harm” states’ election integrity, David Becker, the executive director and founder of the nonpartisan Center for Election Innovation & Research, said in a media briefing earlier Thursday. 

Becker predicted that the order would be “very easy to block” in court.

The department’s requirements are not authorized by Congress or the Constitution, which empowers states to administer elections, Becker said.

“This administration continues to either fail to understand or openly defy the constitutional mandate that gives authority to run elections to the states,” he said.