Pete Hegseth Hates DEI. His Deputy Put Tens Of Millions Into It.

Forbes

The defense secretary once claimed the root of diversity, equity and inclusion is a “Marxist philosophy.” His very-capitalist deputy, billionaire Steve Feinberg, happens to be one of its largest funders.  Read the full story on Forbes: https://www.forbes.com/sites/danalexander/2025/04/23/pete-hegseth-hates-dei-his-deputy-put-tens-of-millions-into-it/  Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1  Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:  https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

00:00Today on Forbes, Pete Hegseth hates DEI.

00:04His deputy put tens of millions into it.

00:08Embattled Secretary of Defense Pete Hegseth assumed his role with a clear mission in mind.

00:14Four days after taking office, he said on Fox News, quote,

00:17DEI is going to be ripped out root and branch.

00:21His deputy secretary, billionaire investor Steve Feinberg, has a different perspective,

00:27having spent nearly $40 million on scholarship programs for black students in recent years,

00:32making diversity, equity, and inclusion initiatives the largest recipients of grants from his foundation.

00:39Feinberg's commitment to the cause began in 2020, the year George Floyd's murder sparked

00:43a national outcry.

00:45The biggest beneficiary appears to be Tuskegee University, which received a $5 million grant

00:50from Feinberg's foundation that year, one of the largest gifts ever for the historically

00:55black school.

00:57A press release issued at the time said the money would go toward scholarships for needy

01:01students.

01:02The famously private Feinberg did not provide any quotes for the announcement, but his foundation

01:07issued a statement with no name attached to it.

01:10It said, quote,

01:11We're very pleased to honor our founder's philanthropic vision with a grant that has real potential

01:16to advance racial equity in post-secondary education.

01:21Money continued to pour in from Feinberg's foundation over the ensuing years, eventually

01:26reaching about $20 million.

01:29The investor also bankrolled a similar effort through the Thurgood Marshall College Fund,

01:33to which he gave another $5 million in 2020.

01:37That organization then provided $8,500 a year to about 60 students, who had to be black or

01:42of African descent, to qualify.

01:46Another organization that received big money from Feinberg, the Congressional Black Caucus

01:49Foundation, a nonprofit connected to the all-Democrat group on Capitol Hill.

01:55The Black Caucus Foundation helps with the Steven Feinberg Multi-Year Scholarship Program, which

01:59provides African American and black undergrads with $10,000 a year for up to four years.

02:06Feinberg has now contributed at least $13 million to the group.

02:10Asked about all of this, and how it jibed with Secretary Hegseth's comments, the spokesperson

02:15for Feinberg issued a carefully worded statement that tried to make it seem like the Defense

02:20Department leaders are on the same page about DEI matters, without actually saying that explicitly.

02:26The spokesperson, Eric Pahan, said in a statement, quote, Deputy Secretary Feinberg is fully aligned

02:32with Secretary Hegseth's priorities.

02:34His many charitable donations have gone to organizations that prioritize merit and performance

02:40to build a stronger America, and today he is working with Secretary Hegseth to advance

02:44those same values for a stronger military.

02:48Feinberg grew up in a modest home in Spring Valley, New York, then worked on Wall Street,

02:52where he eventually opened his own firm, Cerberus Capital Management.

02:57It invested in Chrysler, Fila, and debt tied to Donald Trump's tower in Chicago, ultimately

03:02growing to manage about $70 billion in assets.

03:06Overseeing so much money for others provided Feinberg with plenty of his own—an estimated

03:11$5 billion.

03:13At the end of 2015, he dumped $130 million into a private foundation.

03:19He initially gave to the sorts of causes that lots of billionaires support—a hospital near

03:23his home, and the university he attended, Princeton.

03:27The world changed in 2020 with the COVID-19 pandemic and protests in response to Floyd's

03:32murder—and Feinberg's philanthropic strategy adapted with it.

03:36Like many corporate leaders, Feinberg decided to do something.

03:40For help, he turned to Greg Nixon, a black executive at Cerberus, with a personal story

03:45that underscored the promise of historically black universities.

03:49After graduating from Tuskegee, Nixon joined the U.S. Air Force, became an intellectual

03:53property attorney inside the government, and moved into the private sector.

03:57He ultimately became the head of strategic investments at Cerberus.

04:02With Nixon at his side, Feinberg funneled tens of millions of dollars to DEI initiatives.

04:07Feinberg's Wall Street firm, meanwhile, launched internal committees to support women and promote

04:12inclusion.

04:13On a panel hosted by one of the firm's legal partners, Nixon explained, quote, Cerberus

04:18is fully committed to DEI.

04:22For full coverage, check out Dan Alexander's piece on Forbes.com.

04:27This is Kieran Meadows from Forbes.

04:29Thanks for tuning in.

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