On February 21, 2025 the U.S. District Court for Maryland issued a preliminary injunction enjoining the Administration from enforcing the anti-DEI provisions of two DEI-focused Executive Orders.
- Executive Order 14151, Ending Radical and Wasteful Government DEI Programs and Preferences, directs federal agencies to terminate all “equity-related” grants or contracts within 60 days.
- Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, rescinds Executive Order 11246, directs federal agencies to “terminate all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements,” and orders that all federal contracts and grant awards include a provision requiring recipients to certify that they are in compliance with all applicable federal anti-discrimination laws material to the government’s payment decisions, including for False Claims Act (FCA) purposes.
Background
On February 3, the National Association of Diversity Officers in Higher Education, American Association of University Professors, Restaurant Opportunities Centers United, and the City of Baltimore (Plaintiffs) filed suit in the U.S. District Court in Baltimore alleging that Executive Orders 14151 and 14173 exceed the President’s authority and violate the First and Fifth Amendments of the U.S. Constitution. The Court found that the complaint demonstrates that Plaintiffs have standing to bring this action and are likely to prove that the Executive Orders are unconstitutional, at least in part, because they are vague and chill the Plaintiffs’ free speech.
Key Takeaways
- The preliminary injunction temporarily pauses enforcement of Executive Orders 14151 and 14173. However, the Administration is likely to appeal the Order.
- The Court’s Order does not address the rescission of Executive Order 11246.
- Notably, the Order does not expressly prohibit federal or state agencies from investigating or pursuing claims against entities that are perceived to be engaging in “illegal DEI.”
Employers are advised to conduct a comprehensive review of all current DEI programs and initiatives to confirm that they are in compliance with the President’s Order and current legal precedent. Reviews should be conducted under the attorney-client privilege and results and actions taken, if any, should be documented.
