On February 21, 2025, a federal district court judge issued a preliminary nationwide injunction against clauses of Trump’s Executive Orders set to dismantle Diversity, Equity, Inclusion (DEI) programs for federal contractors and organizations receiving federal grants.
Specifically, the court ruled that following provisions of Executive Order 14151 and Executive Order 14173 were unconstitutional based upon the First Amendment Freedom of Speech and the Fifth Amendment’s Due Process Clause of the United States Constitution:
- The Termination Provision – This section required federal agencies to terminate "equity related" grants or contracts. The injunction found key terms of this provision including “equity,” “equity-related,” and “DEI,” to be unconstitutionally vague and thus, left federal contractors and grantees unable to determine if their DEI programs are in compliance with the executive orders;
- The Certification Provision – This section required federal contractors and grantees to certify that they do not operate any programs promoting DEI that violate any applicable Federal antidiscrimination laws, which was found to violate the First Amendment;
- The Enforcement Provision –This section directed the US Attorney General to identify and target organizations with illegal DEI practices. The injunction found key terms of this provision including “equity,” “equity-related,” and “DEI,” be unconstitutionally vague and a violation of the First Amendment as it threatened enforcement actions against private sector employers for engaging in undefined DEI programs.
Next Steps
The Trump Administration will likely appeal this injunction. It is important to remember that the ruling only impacts federal government actions related to DEI programs for federal contractors and grantees regarding the aforementioned provisions.
This injunction does not shield private parties, state agencies such as BOLI or federal agencies like the EEOC and DOJ from investigating and pursuing discrimination claims related to perceived illegal DEI practices. However, it’s important to reiterate most DEI efforts remain lawful and promote non-discrimination and equal employment opportunities. To ensure legal compliance, employers should proactively review their DEI programs. These executive orders, even prior to the injunction, did not prohibit all DEI efforts, but only those that violate federal anti-discrimination laws. For example, practices that could violate the law (and already do) are DEI programs with quotas based on protected class, employee resources exclusively for certain protected groups, hiring preferences and DEI training that mandates specific ideologies, as these risk violation of anti-discrimination laws.
Cascade is actively monitoring this and will keep you alerted of any developments. In the meantime, we encourage you to read our recent white paper on why now is not the time to abandon your DEI efforts.