Federal court blocks Trump’s DEI restrictions—What it means for employers

A federal court in Maryland recently issued a nationwide injunction blocking key parts of President Donald Trump’s Executive Orders (EOs) that sought to limit diversity, equity, and inclusion (DEI) programs in workplaces across the country. The ruling temporarily halts enforcement of key provisions affecting DEI initiatives, particularly for federal contractors, grant recipients, and private companies that faced uncertainty, compliance risks, and potential penalties. The court found that the provisions were vague, potentially unconstitutional, and could unlawfully restrict free speech. For now, businesses can continue their DEI efforts without immediate government intervention.

What was blocked?

The court’s decision prevents the government from:

• Stopping or canceling federal contracts or grants related to DEI;
• Forcing federal contractors or grant recipients to declare that they do not have DEI programs; and
• Investigating or penalizing private employers for having DEI programs or engaging in diversity-related discussions.

For now, both federal contractors and private employers can continue their DEI programs without fear of federal enforcement actions.

How private employers are affected

Although the EOs primarily targeted federal contractors and grant recipients, they also contained provisions that could negatively affect private companies that engage in DEI initiatives in the following ways: