Costco Engages with Iowa AG Over DEI Policies Amid Conservative Scrutiny

Costco (NASDAQ:COST) has held productive discussions with Iowa Attorney General Brenna Bird regarding its diversity, equity, and inclusion (DEI) policies, following a wave of conservative challenges led by President Donald Trump.

In January, Bird and 18 other Republican state attorneys general sent a letter to Costco CEO Ron Vachris urging the company to reconsider what they called “unlawful discrimination” within its DEI initiatives. Since then, Costco and Bird have engaged in constructive talks about the company’s hiring practices, according to a source familiar with the matter. Although the details remain confidential, Bird’s office confirmed the conversation took place and emphasized Costco’s commitment to non-discriminatory practices.

“Attorney General Bird had a productive meeting with Costco, where the company reaffirmed its commitment to not discriminating based on race,” said Alyssa Brouillet, Bird’s communications director.

Costco, which employs over 300,000 people worldwide—including 219,000 in the U.S.—has not issued a public response to the latest developments.

The political pressure comes amid growing conservative opposition to DEI programs. Trump has called on law enforcement agencies to investigate companies with active diversity policies. The backlash also follows a shareholder meeting where 98% of Costco investors rejected a conservative-backed proposal to evaluate the risks of its DEI efforts. The company’s board unanimously recommended voting against the proposal.

Other major corporations like Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and JPMorgan Chase (NYSE:JPM) have already revised their diversity statements in response to similar scrutiny.

As debates around workplace diversity continue, Costco’s quiet but strategic dialogue with government officials may shape how corporations navigate DEI in a changing political landscape.