Key implications of the February 21, 2025 injunction and what’s next for federal contractors, universities, and corporations
For employers and contractors: The Maryland District Court’s February 21, 2025 injunction immediately pauses major provisions of Trump’s DEI executive orders – here’s how it impacts your organization.
What’s Blocked (and What’s Not)
The preliminary injunction halts enforcement of three contested provisions:
- Termination of Equity Grants
- Blocked: Pending appeal, federal agencies cannot cancel “equity-related” contracts/grants under J20 Order § 2(b)(i)
- Impact: $2.1B in active DEI grants (e.g., higher education training programs) remain protected.
- Mandatory DEI Certifications
- Paused: For now, contractors are not required to certify DEI programs comply with anti-discrimination laws (J21 Order § 3(b)(iv)).
- Relief: Avoids False Claims Act risks for existing diversity initiatives.
- Targeted Enforcement Plan
- Blocked: DOJ’s pending report identifying “up to nine” DEI investigations against large corporations/universities (J21 Order § 4(b)(iii)).
Still Active: Non-DEI provisions, including merit-based hiring mandates for federal agencies. The preliminary injunction does not block the Attorney General “from preparing a report [containing specific steps or measures to deter DEI programs or principles that constitute illegal discrimination] pursuant to the J21 Order. However, it prevents the Attorney General from acting on any report recommendations.
“The orders are unconstitutionally vague in defining ‘DEI-related’ activities.” – Judge Abelson
Three Immediate Action Items
- Audit Vulnerable Contracts: Review federally funded DEI programs paused since January. Resume activities covered by the injunction
- Audit Existing DEI Programs: Audit existing DEI programs to ensure alignment with federal civil rights laws. Avoid efforts that exclude specific groups.
- Implement Periodic Risk Assessments: Perform periodic non-discrimination analysis. Analyzing workplace or organizational decisions will help proactively uncover any risks associated with Title VII.
What’s Next: Timeline to Watch
|
Date |
Event |
Risk Level |
|
Mar. 15 |
The DOJ’s appeal of the Maryland injunction is due by March 15 |
High |
|
Apr. 2 |
Supreme Court’s argument session runs from March 24 to April 2, The DOJ’s appeal of the Maryland injunction could reach the Supreme Court later in 2025. The April 2 conference signals how the Court might approach ruling. |
Moderate |
|
Weekly Updates |
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Up Next: Helpful Resources
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