Reflecting on the Biden administration’s time in power, it’s clear that the Treasury Department became ground zero for the administration’s radical “diversity, equity, and inclusion” (DEI) agenda. Under Secretary Janet Yellen, an institution meant to guard America’s financial health was instead hijacked to push left-wing racial and gender ideologies. The transformation wasn’t superficial—it fundamentally altered federal financial policies, prioritizing racial favoritism over equal treatment under the law. What was supposed to be an impartial arm of government became a key player in a broader campaign to divide Americans along racial lines.
As Chris Rufo reported in City Journal, Yellen’s early statement to Treasury employees, timed to coincide with the anniversary of George Floyd’s death, set the tone for the department’s new ideological mission. Rufo exposed how Yellen’s Treasury, empowered by Biden’s executive orders, directed billions in taxpayer dollars to racially-favored groups, established a centralized DEI apparatus, and began hiring radical race activists, like Janis Bowdler, to push a divisive agenda throughout the agency.
Treasury’s racial policies extended beyond mere messaging. The department actively prioritized minority-owned businesses and other “underserved” groups in federal contracting and tax audits, subordinating traditional financial standards to racial politics. Programs like the State Small Business Capital Initiative funneled billions to racially-preferred groups, while contracts were awarded based on racial quotas rather than merit. As Rufo writes, this DEI-driven initiative “openly discriminates” in favor of “diverse” businesses, reshaping the way our government interacts with private industry.
Yellen’s DEI crusade was more than bureaucratic tinkering. It threatened the integrity of our financial system and encouraged lawlessness, as evidenced by the IRS’s new audit policies, which prioritized “equity” over accuracy. This radicalization of the Treasury Department serves as a cautionary tale about how racial ideology can corrupt even the most vital institutions in America. If left unchecked, it will only sow division and weaken the very foundation of our economic system.
This post originally appeared at https://www.phyllisschlafly.com/family/lgbt/the-dei-treasury/
Phyllis Schlafly