Federal Court Permanently Lifts Block on Anti-DEI Executive Order

The Fourth Circuit Court of Appeals permanently lifted an injunction blocking enforcement of President Trump’s Executive Order targeting DEI practices and initiatives.  

Why it matters: The decision allows the administration to move fully forward with its anti-DEI agenda, including requiring federal contractors to certify that their DEI practices do not violate the law, putting more pressure on companies to end their DEI efforts. 

The Executive Order and subsequent lawsuits: Trump issued the Executive Order “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” almost immediately after taking office last year.  

• Among other things, the EO requires federal contractors to certify that they are in compliance with federal anti-discrimination laws and do not have any DEI programs that violate such laws.   
• The Order was challenged in court by various parties, and in February 2025, a Maryland district court judge temporarily blocked the administration from enforcing several provisions of the EO, on the grounds that it could violate free speech and did not adequately define “illegal DEI.”  
• The Fourth Circuit temporarily lifted that injunction a month later, finding that the Order was likely lawful as long as it merely enforced existing anti-discrimination law.  

Injunction fully lifted: In a full decision on the merits last week, the Fourth Circuit echoed its temporary decision from last year and found that the EO was not unlawful on its face, as it in theory only enforces existing anti-discrimination law.  

• The court noted that future parties could still challenge the way the EO is enforced in practice moving forward – i.e., a federal contractor could challenge the administration’s certification requirement if it is based on a definition of “illegal DEI” clearly at odds with anti-discrimination law.  
• The case could eventually make its way up to the Supreme Court, which is likely to agree with the Fourth Circuit’s decision.  

What employers need to know:  

• While the administration has already not been shy about targeting employers for allegedly unlawful DEI practices, the decision removes any remaining legal barriers to  including certification requirements for federal contractors, as well as ongoing DOJ investigations into private companies.  
• The certification requirements create significant risk for contractors, as the administration continues to be vague about what it considers “illegal DEI.”  
• EEOC Chair Lucas has stated that the Commission is unlikely to provide specific guidance on “illegal DEI” beyond what was already articulated by the DOJ.  
• Companies will continue to face legal and reputational pressure from the administration over DEI initiatives, while being left in the dark about what exactly constitutes “illegal DEI” until enforcement actions are taken. 
  • From the administration’s point of view, any DEI practice is potentially unlawful – a stance that has yet to gain traction in court.