Republican attorneys general call on Costco to end DEI programs

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Nineteen Republican attorneys general called on Costco Wholesale Corp. to end its workforce diversity policies after the bulk retailer become one of few companies to defend its practice.

The state officials said in a letter to Costco Chief Executive Officer Ron Vachris on Monday that the retailer’s decision to defend its diversity, equity and inclusion efforts goes against the Supreme Court’s 2023 ruling against affirmative action.

Last week, Costco fought off an investor proposal at its annual shareholder meeting from a conservative group seeking details of the risks attached to so-called DEI policies.

“I’m putting Costco on notice to do the right thing and eliminate discriminatory DEI,” Iowa Attorney General Brenna Bird said in a statement.

The pushback from state Republicans comes as President Donald Trump’s new administration lashes out at DEI programs and tries to eliminate them in the federal government and corporate America. Walmart Inc. and Meta Platforms Inc. are among companies that have rolled back DEI programs under pressure from conservatives.

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Costco declined to comment. Last week, the company defended the legality of its DEI programs, saying that its “commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.”

The attorneys general, which include those from Texas and Georgia, are demanding Costco say within 30 days whether it has repealed its DEI policies or explain why it hasn’t done so.

The move comes after Texas Attorney General Ken Paxton asked last week that Wall Street firms answer questions about their DEI measures.