Mitigate Risk, Lead with Clarity |
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IN THIS ISSUEALSO INCLUDED |
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PREVIOUSLY ISSUED EXECUTIVE ORDERS | For continued reference these are the EOs targeting DEI and LGBTQ+ protections that have been issued: We will continue to monitor activities that relate to these EOs either directly or indirectly. |
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EXECUTIVE ORDERS & FEDERAL POLICY |
| | | | | | OVERVIEWOn January 27, 2026, the U.S. State Department published final rules expanding the scope of the Mexico City Policy, significantly broadening restrictions on U.S. foreign assistance. The Mexico City Policy, first introduced in 1984, conditions U.S. foreign aid on recipient organizations certifying that they do not perform or promote abortion services using non-U.S. funds.
The January 2026 expansion extends those conditions beyond abortion-related activities to include organizations that promote what the administration defines as “gender ideology” or diversity, equity, and inclusion (DEI) programs. The revised policy applies to approximately $30 billion in non-military U.S. foreign assistance, including global health, humanitarian, and development funding administered by the State Department and the U.S. Agency for International Development.
Under the expanded framework, organizations seeking covered U.S. assistance must certify compliance with the new restrictions as a condition of funding eligibility. Organizations that decline to certify remain legally permitted to operate but are ineligible for covered funds.
The policy change drew condemnation from international aid organizations, public health groups, and human rights advocates, who warned that the expanded restrictions could disrupt healthcare delivery, humanitarian relief, and development programs, particularly those serving women and LGBTQ+ populations. LEGAL INTERPRETATIONThe Mexico City Policy operates through executive authority governing the terms and conditions of U.S. foreign assistance rather than through statute. Its expansion does not amend federal civil rights law or foreign assistance statutes, but instead conditions eligibility for covered U.S. funding on recipient certifications, making compliance a prerequisite for participation in designated programs.
The Supreme Court has upheld the federal government’s authority to attach conditions to funding, including in Rust v. Sullivan, which recognized that the government may define the scope of programs it funds without regulating private conduct outside those programs. Organizations remain legally permitted to engage in restricted activities but may not do so while receiving covered assistance.
The January 2026 expansion introduces new legal considerations related to administrative implementation and definitional clarity. Because the policy extends beyond abortion-related activities to concepts such as “gender ideology” and DEI, any challenges would likely focus on how those terms are defined and applied, rather than on the legality of DEI or gender-related programming itself. BRIDGE POV The expansion of the Mexico City Policy underscores how executive authority over federal funding can be used to reshape operating conditions without changing underlying law. While the policy does not prohibit DEI or gender-related programming, it materially alters the risk and compliance landscape for organizations that rely on U.S. foreign assistance.
Funding conditions are being used as a lever to enforce policy preferences across a widening set of activities, increasing the importance of clarity, documentation, and disciplined decision-making. Organizations that conflate funding eligibility with legality risk overcorrecting in ways that are neither required nor strategically sound.
Leaders must distinguish between what the government can condition, what the law permits, and what their institutions are prepared to defend operationally and reputationally.
ACTIONABLE STRATEGIES - Separate Funding Eligibility from Program Legality: Ensure leadership teams clearly distinguish between activities that are legally permissible and those that may affect eligibility for specific federal funds. Avoid broad program withdrawals driven by funding conditions alone.
- Audit Certification Exposure and Dependencies: Identify where certification requirements attach, which programs are affected, and what proportion of operations depend on covered U.S. assistance. Decisions should be based on concrete exposure, not generalized risk assumptions
Align Governance Before External Pressure Increases: Establish a shared executive position on compliance, risk tolerance, and continuity of mission-critical programs. Alignment across legal, compliance, and leadership functions reduces reactive decision-making when scrutiny intensifies.
See also: State Department Moves to Classify DEI as a “Human Rights Violation,” Rewriting Global Rights Standards Through an Ideological Lens (Issue 40) | | | | | |
| | | | | | OVERVIEWOn January 24, 2026, U.S. Immigration and Customs Enforcement (ICE), through Homeland Security Investigations, issued a Request for Information (RFI) as market research seeking information from vendors on “commercial Big Data and Ad Tech” products. The RFI states that ICE is seeking information to better understand how commercially available Big Data and advertising-technology products could support investigative activities.
Following the RFI, tech workers organized public pressure campaigns urging corporate leaders to take positions on ICE engagement. One effort, “Tech Demands ICE Out of Our Cities,” organized by Anne Diemer, a former Stripe employee and human resources consultant, circulated an open letter calling on chief executives to take three specific actions: contact the White House to demand ICE withdraw from cities, cancel existing company contracts with ICE, and publicly oppose what the campaign characterizes as ICE violence.
The pushback reflects growing employee-led scrutiny of corporate relationships with federal law enforcement agencies, particularly where commercial data, surveillance technologies, or government contracts are involved. LEGAL INTERPRETATIONICE’s January 24, 2026 Request for Information seeks information about commercially available data products that could support investigative activities. While the RFI itself does not authorize data collection or use, it sits within an ongoing legal debate over when government access to commercially sourced personal data constitutes a search under the Fourth Amendment.
In Carpenter v. United States (2018), the Supreme Court held that individuals retain a reasonable expectation of privacy in extensive historical cell-site location information, and that government access to such data generally requires a warrant. That decision has shaped scrutiny of law enforcement reliance on third-party data, particularly where location, tracking, or behavioral information is involved.
Congress has also considered statutory limits on government purchases of personal data from data brokers. In the 118th Congress, the House passed the Fourth Amendment Is Not For Sale Act, which would require federal agencies to obtain court authorization before acquiring certain categories of personal information, though the measure has not been enacted.
Employee-led campaigns urging companies to sever or limit engagement with ICE do not impose legal obligations on employers, but they intersect with governance, contractual decision-making, and workforce relations for companies that provide data, technology, or services to government agencies. BRIDGE POV ICE’s request to explore the use of commercial surveillance and advertising data is a serious overreach. It represents a breach of privacy, civil liberties and a violation of public trust. Turning data collected for advertising and consumer targeting into a tool for government enforcement collapses the boundary between commercial tracking and state surveillance.
The reaction from tech workers reflects how stark this feels. Employees are responding to the normalization of surveillance through private data markets and the use of that surveillance to support enforcement practices they believe cause real harm. The demands directed at corporate leaders are direct. Companies should not be enabling government access to personal data in ways that bypass accountability, consent, and basic expectations of restraint.
This raises a responsibility question for leadership. When companies provide data, tools, or infrastructure that expand the government’s ability to monitor and track people, they are making an affirmative choice. This is not abstract risk management. It is about whether there are limits on how personal data is used and whether companies are willing to draw those limits when public trust and fundamental rights are at stake.
ACTIONABLE STRATEGIES - Set Explicit Limits on Government Use of Commercial Data: Define, in writing, what categories of data your company will not sell, license, or make accessible for law enforcement or immigration enforcement purposes, regardless of legality. Clear internal boundaries prevent ad hoc decisions driven by pressure or opportunity.
- Require Executive Review for High-Risk Government Engagements: Elevate any request involving surveillance, tracking, or behavioral data to the executive level. These decisions should not be delegated to sales, procurement, or technical teams. Accountability must sit with leadership.
- Be Clear with Employees About Where the Company Draws the Line: Silence fuels mistrust. Communicate plainly about whether the company will engage with agencies like ICE, under what conditions, and where it will refuse to participate. Clarity reduces internal conflict and avoids reactive decision-making after public exposure.
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On January 22, shareholders of Intuit voted 99–1 to defeat an anti-DEI shareholder proposal submitted by the National Center for Public Policy Research. The proposal requested reporting on the return on investment of Intuit’s diversity programs and an assessment of legal and reputational risks associated with DEI initiatives.
Intuit’s Board of Directors unanimously recommended that shareholders vote against the proposal, stating in its proxy materials that the requested report was unnecessary and duplicative of existing disclosures.
The Intuit vote continues a pattern of shareholder rejection of similar anti-DEI proposals. In 2025, shareholders at multiple large public companies voted down comparable measures by wide margins.
See also: Proxy Season 2025: A Defining Line on DEI (Issue 18) | | | | | |
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After weeks of intensified federal immigration enforcement activity in Minnesota, including the reported killings of Renée Good and Alex Pretti during separate federal operations in Minneapolis, chief executives of several major Minnesota-based companies publicly addressed the situation for the first time. On January 25, more than 60 CEOs signed a joint statement calling for “de-escalation” and urging federal, state, and local officials to work together to reduce harm and restore stability.
The statement marked a shift after an extended period of corporate silence as enforcement activity escalated and community outrage grew. However, the letter did not name ICE or other federal agencies involved, nor did it name the individuals who were killed. Instead, it framed the events as tragic and emphasized calm, cooperation, and dialogue.
The response drew mixed reactions. Some viewed the statement as an overdue acknowledgment of the human cost of federal enforcement actions. Others criticized it as insufficient, arguing that calls for de-escalation without naming the conduct or the people harmed avoid accountability rather than demonstrate leadership.
This underscores the growing pressure on corporate leaders to respond when government action results in loss of life. It also raises a sharper question about corporate voice in moments of state violence: whether leadership means issuing generalized appeals for calm, or speaking plainly about what has occurred and who has been harmed. |
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COMMUNITY EVENTS | Please join BRIDGE on February 12 in New York City for The System for Inclusive Growth Roadshow.
This FREE half-day, in-person executive briefing brings together senior leaders across brands, agencies, and platforms to explore how inclusion can be applied as a measurable growth capability, embedded into the systems that drive performance, reduce exposure, and support long-term business outcomes.
Agenda details can be found here or feel free to register here. | | | | | That conversation continues and expands at our annual retreat, BRIDGE26: Beyond the Line, taking place May 3–5 in Newport Beach.
BRIDGE26 is where leaders come together to sharpen how they think, how they decide, and how they build growth capabilities that endure. | | |
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ABOUT PROJECT FORWARD | | | | | | | Led by BRIDGE, Project FORWARD is a weekly leadership briefing that distills the most consequential legal, political, and reputational developments shaping DEI and inclusive growth. Each issue provides legal interpretation, BRIDGE’s point of view, and actionable strategies to help leaders safeguard trust, anticipate risk and make credible value-based decisions in a volatile environment. Who it’s for: CMOs, CCOs, Chief DEI Officers, GCs, Heads of Risk, CHROs, and senior leaders across DEI, marketing, brand, policy, and legal functions. FOR PAST ISSUES OF PROJECT FORWARD WEEKLY GUIDANCE PLEASE VISIT HERE. *These Project FORWARD updates should not be construed as legal advice or counsel. They are for educational and instructive purposes only, to aid our understanding about how best to actively continue our mission in response to this moment. | | | | | |
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