On February 21, 2025, the U.S. District Court for the District of Maryland issued a nationwide preliminary injunction barring implementation of key provisions of two executive orders issued by Pres. Trump related to diversity, equity, and inclusion (DEI) programs.
The case addresses challenges to Executive Order 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” and Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The injunction blocks the following provisions of those executive orders:
- The Termination Provision: This directed federal agencies to terminate “equity-related” grants or contracts. The court found that it likely violates the Fifth Amendment due to vagueness.
- The Certification Provision: This required contractors and grantees to certify they don’t operate DEI programs that violate federal anti-discrimination laws. The court found that it likely violates the First Amendment right to free speech.
- The Enforcement Threat Provision: This directed the Attorney General and heads of federal agencies to take measures to deter DEI programs in the private sector. Finding that aspects of this provision violate both the First and Fifth Amendments, the court barred the government from bringing any False Claims Act or other enforcement action pursuant to this provision. The court declined, however, to enjoin the part of this provision that directs the government to prepare a report and conduct investigations of DEI programs.
The ruling does not affect other parts of the executive orders that were not challenged in the lawsuit. Consequently, some provisions remain in place, such as the provision directing agencies to remove references to DEI and the provision rescinding Executive Order 11246 on nondiscrimination in employment by federal government and federal contracting.
AGC anticipates that the administration will appeal the ruling and will monitor developments. Contractors should stay informed and consult with qualified legal counsel for advice as to how the developments impact their operations.
A copy of the preliminary injunction is available here. A copy of the memorandum of opinion is available here.
For more information, contact Denise Gold, VP, Corporate & Labor Legal Matters, at denise.gold@agc.org.