4th Circuit vacates injunction on anti-DEI Executive Orders

On February 6, 2026, the U.S. 4th Circuit Court of Appeals (whose rulings apply to employers in Maryland and Virginia) issued a significant ruling vacating a preliminary injunction that had blocked key provisions of President Trump’s Executive Orders (EOs) targeting diversity, equity, and inclusion (DEI) programs. 

Clearing the path

In its decision, the three-judge panel concluded that the EOs—which direct federal agencies to terminate “equity-related” grants and contracts and require federal contractors and grant recipients to certify compliance with antidiscrimination laws—are likely constitutional and do not impermissibly chill protected speech. Chief Judge Albert Diaz wrote that “President Trump has decided that equity isn’t a priority in his administration and so has directed his subordinates to terminate funding that supports equity-related projects to the maximum extent allowed by law,” adding that “whether that’s sound policy or not isn’t our call.”

The EOs were challenged by a group that included the city of Baltimore and several academic associations, and the court addressed three provisions they challenged. First, regarding the “Termination Provision,” which directs agencies to terminate all equity-related grants and contracts, the court held that because the provision is an internal directive to executive-branch actors instructing them to act only “to the maximum extent allowed by law,” it is not unconstitutionally vague and does not directly regulate private conduct.