On February 21, 2025, a federal court[1] preliminarily blocked the Trump administration from enforcing key provisions of the recent executive orders (EOs) to eliminate “illegal” diversity, equity, and inclusion (DEI) programs and initiatives from the federal government and federal contractors. The court found the provisions to be unconstitutionally vague and likely to infringe on free speech. This PilieroMazza client alert outlines the current status of the EOs and potential impacts on federal contractors.
EOs 14151 and 14173, issued by the Trump administration on January 20 and 21, respectively, required termination of all contracts or grants that included diversity, equity, inclusion, and accessibility (DEIA) mandates, policies, programs, preferences, and activities. It also terminated any federal government employee position or organization related to DEIA efforts, directed the Attorney General to prosecute private sector entities that maintain DEIA programs, and required certification by federal contractors that they discontinued all “illegal” DEIA programs. See PilieroMazza’s client alert here.
The U.S. District Court for the District of Maryland found these aspects of the EOs overly broad because they failed to define key terms such as DEIA or to advise contractors on what constitutes an “illegal DEI” program. The ruling gives some reprieve to organizations promoting DEIA and provides at least temporary relief for federal contractors and subcontractors and other private employers who were faced with a high degree of uncertainty regarding the prospect of False Claims Act liability for false certification without any guidance as to what an illegal DEIA program might be. Other civil rights organizations filed challenges in the U.S. District Court for the District of Columbia and the U.S. District Court for the Northern District of California against the two DEI EOs and another EO that rejected gender identity.
It is important to note that certain aspects of the EOs (and related EOs) are still in place; for example, the aspects of EO 14173 revoking EO 11246 and stripping the Office of Federal Contract Compliance Programs of many of its responsibilities. The Trump administration is expected to appeal the ruling.
Join Nichole Atallah and Sarah Nash, partners in PilieroMazza’s Labor and Employment Group and members of PilieroMazza’s Executive Order Response Team, on February 27 for a webinar that will guide federal government contractors through the executive orders relating to DEIA and provide insights on ongoing compliance obligations.
[1] National Association of Diversity Officers in Higher Education et al. v. Trump et al., Dkt. No. 1:25-cv-00333 (D. Md. Feb. 21, 2025) (NADOHE v. Trump).
