Nineteen state attorneys general have issued a challenge to Costco's diversity, equity, and inclusion (DEI) policies, citing potential legal conflicts. This action follows a recent executive order by President Trump eliminating DEI initiatives from federal agencies and suggesting similar action for private companies.

Kansas Attorney General Kris Kobach emphasized the illegality of race-based hiring, stating his commitment to enforcing the law. The attorneys general are tasked with identifying organizations potentially engaging in discriminatory DEI practices under the executive order.

Led by Iowa Attorney General Brenna Bird, the group sent a letter to Costco's CEO urging the company to discontinue its DEI policies. They argue that such policies may violate federal civil rights laws. The executive order specifically targets publicly traded companies, large nonprofits, and certain other organizations for DEI scrutiny.

While some major corporations like Target, McDonald's, and Walmart have scaled back their DEI programs, Costco shareholders recently voted against a proposal requiring the company to report on the risks associated with its DEI policies. Costco's board defended its DEI commitment as "appropriate and necessary."

Attorney General Bird criticized Costco for "doubling down" on DEI while other companies are abandoning such policies. She called on Costco to "eliminate discriminatory DEI" and ensure equal opportunities for all, regardless of whether they "fit the woke mold." The Rev. Al Sharpton organized a shopping event at a Harlem Costco in support of the company's DEI stance.

The attorneys general's letter to Costco's CEO argues for race-neutral practices and highlights the federal government's focus on eliminating race-based discrimination in corporations. They have requested a response from Costco within 30 days, outlining either the repeal of the policies or a justification for maintaining them. Attorneys general from several other states also signed the letter. Fox News reached out to Costco for comment but did not receive a response.