Twenty attorneys general sue over federal contractor DEI EO

On Wednesday, June 10, 2026, a coalition of 20 states and the District of Columbia filed suit in the federal district court for the District of Maryland challenging the actions taken to implement Executive Order (EO) 14398, “Addressing DEI Discrimination by Federal Contractors.” The lawsuit alleges the actions exceed statutory authority and were issued without notice and comment required by Administrative Procedure Act as well as being arbitrary and capricious. A previous lawsuit alleged EO 14398 is unconstitutional. 

House Republicans move to eliminate OFCCP 

House Republicans have proposed a 27% decrease in the Department of Labor’s (DOL) fiscal year (FY) 2027 budget. The bill would eliminate the Office of Federal Contract Compliance Programs (OFCCP) as proposed by the Trump administration for FY2026 as well as FY2027. The Senate had reinstated the budget for the OFCCP last year, providing it with over $100 million. 

OMB proposes new grant regulations for all 

The Office of Management and Budget (OMB) and over 40 other federal agencies are proposing sweeping revisions to the federal grant process. The new process will allow political appointees to terminate grants “in the interest of the federal agency or pass-through entity,” including when an award “no longer effectuates program goals, federal agency priorities, or the national interest.”