While I agree with your assessment of the situation, even then I wouldn't have a government policy which forces the DEI policies out. If the management, board, and ultimately shareholders of business want to run the most "progressive"/"woke" hiring and HR policies imaginable: they have the right to do so. Mind you I probably wouldn't want to even be a customer of such a company let alone work for it, but a private entity should be able to act as they see their best interest dictates.