Chicago Jobs Council Response to Executive Orders and Federal Funding Freeze
The Chicago Jobs Council (CJC) strongly opposes the recent executive actions taken by the Trump administration that dismantle essential Diversity, Equity, Inclusion, and Accessibility (DEIA) programs and impose a broad freeze on federal funding. These measures directly threaten workforce development initiatives, economic equity, and the livelihoods of millions of Americans. As an organization dedicated to creating an antiracist workforce development system, we stand in solidarity with those affected and urge policymakers to reject these harmful policies.
The Impact of Executive Orders on DEIA Initiatives
The administration eliminates essential DEIA programs within federal agencies, claiming that such initiatives represent “illegal and immoral discrimination” and hinder merit-based hiring. These orders include:
Termination of Federal DEIA Programs: Employees supporting DEIA efforts have been placed on administrative leave, with dismissal plans, removing institutional efforts to promote equitable hiring and workplace inclusion.
Revocation of Executive Order 11246: This longstanding order, which required federal contractors to implement affirmative action policies, has been rescinded, eliminating crucial protections against employment discrimination.
Ban on DEIA Practices for Federal Contractors: Federal contractors are now prohibited from enforcing DEIA frameworks, significantly reducing equal opportunity efforts in federally funded employment.
Increased Scrutiny of Private Sector DEIA Efforts: Federal agencies have been directed to investigate private organizations' DEIA initiatives, potentially stifling corporate efforts to advance workplace equity.
The Harmful Consequences of the Federal Funding Freeze
In addition to reversing DEIA policies, the administration announced a funding freeze to take effect on January 28th. This freeze would have stopped almost all federal grants, loans, and financial assistance programs. This decision put up to $3 trillion in vital funding at risk, affecting state, local, and tribal governments, nonprofit organizations, small businesses, and marginalized communities would have threatened the following:
Public Transit Systems: Federal Transit Formula Grants, which fund city buses and trains, may be suspended, disrupting essential transportation services.
Child and Food Assistance Programs: The National School Lunch Program and childcare funding are at risk, exacerbating food insecurity and economic instability for low-income families.
Workforce Development Programs: Skills-based training initiatives, career readiness programs, and support services for job seekers may be defunded, further restricting employment opportunities for vulnerable populations.
Education and Disability Services: Special Education Grants to States that provide critical resources for students with disabilities face potential cuts, harming the most vulnerable learners.
Public Safety and Economic Development: The High-Intensity Drug Trafficking Areas Program and the CHIPS Incentives Program, which supports semiconductor manufacturing, are at risk, potentially jeopardizing local economies and national security. The CHIPS program encourages domestic semiconductor production and offers essential career pathways in technology, engineering, and advanced manufacturing. If funding is discontinued, job seekers will lose access to high-quality training programs, apprenticeships, and well-paying job opportunities in this rapidly growing industry.
While the Office of Management and Budget (OMB) has rescinded its initial memo advocating the freeze, the White House clarified that this does not mean the freeze has been reversed. Instead, agencies are instructed to consult legal advisors for guidance on implementing the administration’s policies. Programs like Social Security and SNAP remain unaffected, but confusion persists regarding intermediary funding to nonprofits and state governments. The legal stay allows federal funds to continue flowing temporarily, but uncertainty looms as agencies prepare reports due by February 10 on potentially affected programs.
CJC’s Stance and Commitment to Action
CJC is dedicated to eliminating systemic barriers to employment and economic opportunity. The current executive actions disproportionately impact marginalized communities, worsening economic disparities and hindering progress toward a more inclusive workforce. In response, CJC is committed to the following:
Advocacy for Workforce Equity: We will continue collaborating with state and national partners to challenge these harmful policies and advocate for restoring essential funding streams.
Legal and Policy Action: CJC supports ongoing litigation efforts led by the National Council of Nonprofits and 23 attorneys general to oppose the funding freeze and executive orders, emphasizing the need for equitable workforce policies.
Community and Employer Engagement: We urge employers, workforce practitioners, and local leaders to unite against these detrimental policies and promote inclusive employment practices.
Collaboration with Local Leadership and Sector Partners: We will work with city, county, and state officials, the philanthropic community, and Community-Based Organizations to advocate for policies that maintain economic opportunities, such as partnerships with Chicago Mayor Brandon Johnson and support for Illinois’ Climate and Equitable Jobs Act (CEJA) initiatives. We also take this opportunity to urge Governor Pritzker to prioritize implementing all the Governor's Commission on Workforce Equity and Access recommendations to support the State’s commitment to equity.
Call to Action
Now, more than ever, we must unite to safeguard equitable workforce development and economic inclusion. CJC calls on all stakeholders—employers, workforce organizations, policymakers, and community members—to oppose regressive measures and advocate for policies that create opportunities for everyone.
We are dedicated to supporting job seekers, pushing for systemic change, and ensuring workforce policies align with our shared equity, inclusion, and justice values.
