February 27, 2025 – On February 21, 2025, United States District Judge Adam B. Abelson issued a nationwide preliminary injunction in a Maryland federal lawsuit, halting key provisions of two executive orders (EOs) issued by President Donald Trump. The two EOs—Exec. Order 14151, Ending Radical and Wasteful Government DEI Programs and Preferencing, Executive Order of January 20, 2025, 90 Fed. Reg. 8339 (Jan. 29, 2024) (“J20 Order”) and Exec. Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, Executive Order of January 21, 2025, 90 Fed. Reg. 8633 (Jan. 31, 2025) (“J21 Order”)—include provisions that, among other things, direct the federal government to dismantle illegal “diversity, equity, and inclusion” (DEI) and “diversity, equity, inclusion, and accessibility” (DEIA) programs within federal agencies and contractors.

In early February, the National Association of Diversity Officers in Higher Education, the American Association of University Professors, Restaurant Opportunities Centers United, and the Mayor and City Council of Baltimore filed the lawsuit against President Trump, the Attorney General, and various other federal agencies and agency heads, alleging that specific provisions of the EOs violated the U.S. Constitution.

The plaintiffs sought a preliminary injunction over three provisions of the EOs:

1. J20 Order’s Termination Provision: This provision required federal agencies to terminate “equity-related” grants or contracts within 60 days.
2. J21 Order’s Certification Provision: This provision required federal contractors and grantees to certify compliance with federal anti-discrimination laws and affirm they do not operate any DEI programs that violate those laws, under the threat of False Claims Act (FCA) liability.
3. J21 Order’s Enforcement Threat Provision: This provision instructed the Attorney General to develop a strategic enforcement plan to deter DEI programs or principles characterized as “illegal discrimination” or “preferences,” including those in private sector organizations, by initiating investigations into large corporations, non-profits, and universities.

The Injunction

The Court granted the preliminary injunction, pausing the enforcement of these provisions nationwide. Therefore, the court’s ruling prevents the federal agencies that are Defendants in this case from:

• Terminating or altering any current federal contracts or grants based on the Termination Provision.
• Requiring contractors or grantees to make certifications under the Certification Provision.
• Bringing enforcement actions under the Enforcement Threat Provision, including actions under the False Claims Act based on the certifications required by the Certification Provision.

The Impact

The injunction’s immediate effect is to halt the Trump Administration’s efforts to roll back DEI programs within federal agencies, federal contractors, and private sector entities targeted for investigation. Specifically, the injunction:

• Relieves federal contractors of the obligation to execute certifications under threat of FCA liability.
• Prevents the government from impeding or terminating any existing contracts or grants based on the DEI-related provisions of the EOs.
• Bars the government from taking enforcement actions against contractors, grantees, and private sector entities under the False Claims Act related to these provisions.

However, certain aspects of the EOs remain unaffected by the injunction. Notably, the Attorney General is still permitted to prepare the report called for under the Enforcement Threat Provision (which may include investigating large private sector entities for possibly unconstitutional and discriminatory practices by maintaining unlawful DEI initiatives or employment practices).

The ruling is expected to be appealed by the Department of Justice, and the case could ultimately reach the U.S. Supreme Court.