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Kentucky attorney general among Republican officials pressuring Costco to drop DEI policies

Reuters

Kentucky Attorney General Russell Coleman joined 18 other Republican attorneys general in calling on Costco Wholesale to abandon its diversity, equity and inclusion policies, according to a signed letter sent Monday.

The GOP officials cited concerns about discrimination and legal risks. This comes after 98% of the U.S. retailer's shareholders voted last week against a proposal requesting a report on the risks tied to its diversity and inclusion initiatives, pushing back against the growing scrutiny such policies face. Costco has four stores in Kentucky, including two in Louisville.

Costco did not immediately respond to a Reuters request for comment outside regular business hours.

State officials in a letter to Costco's top boss Ron Vachris accused his company of doubling down on policies they allege violate merit-based principles and federal law.

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The 19 Republican officials, co-led by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird have demanded Costco notify the states within 30 days whether it will repeal its DEI policies or provide an explanation for maintaining them.

The pressure from the Republicans comes after President Donald Trump issued an executive order directing government agency chiefs to dismantle DEI policies at federal agencies, federal contractors, and in the private sector.

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Companies such as Meta, Amazon, JPMorgan Chase, and Boeing have modified their initiatives, scrapped their DEI goals, or ended participation in the Human Rights Campaign Foundation's corporate equity index.