A federal judge in the United States has refused to temporarily block President Donald Trump’s efforts to restrict diversity, equity and inclusion (DEI) programmes among companies that do business with the federal government.
US District Judge Adam Abelson, sitting in Baltimore, Maryland, ruled on Wednesday that groups representing university faculty members and minority business owners had not demonstrated that Trump’s executive order issued in March was overly broad.
The order prohibits what the administration describes as “racially discriminatory DEI activities” by federal contractors and requires companies to certify in writing that they comply with the directive. Businesses that fail to meet the requirements could lose government contracts or face investigations under the federal False Claims Act.
The groups challenging the policy argued that the order wrongly treats all DEI initiatives as illegal racial discrimination and could restrict speech protected by the US Constitution.
However, Abelson, who was appointed by former President Joe Biden, said the order’s definition of prohibited conduct was narrower than the plaintiffs had suggested.
“The Contractors Order only prohibits contractors from engaging in conduct that is already prohibited by federal law: intentional discrimination on the basis of race or ethnicity,” the judge wrote.
The ruling means the order will remain in effect while the lawsuit, filed in April, proceeds through the courts. Abelson rejected the plaintiffs’ request for an injunction that would have temporarily prevented the administration from enforcing the policy.
The plaintiffs are represented by Democracy Forward, a progressive legal organisation. Following the decision, the group said the ruling should reassure federal contractors that the order does not impose a blanket ban on diversity programmes.
It also said the court had confirmed that the order applies only to work performed for the federal government under the specific contract containing the relevant language.
The US Department of Justice did not immediately respond to requests for comment on the ruling.
A separate legal challenge has also been brought by 19 states led by Democrats and Washington, DC, in the same court. That lawsuit seeks to prevent federal agencies from modifying contracts to comply with Trump’s order.
The dispute could have significant implications for businesses across the United States, as many major companies in the defence, technology, food service and logistics industries hold federal contracts. Some businesses rely heavily on government contracts for their operations.
Supporters of DEI initiatives argue that such programmes help address longstanding inequalities affecting women, LGBTQ people and ethnic minorities.
Trump and many conservatives, however, contend that DEI policies undermine merit-based decisions and discriminate against groups such as white people and men. Since returning to office, the administration has moved to dismantle DEI initiatives across government institutions, universities and the private sector.
Trump has already prohibited DEI programmes within federal agencies and revoked a 1965 executive order that required federal contractors to take affirmative action to recruit minorities and women.
The latest ruling does not determine the final outcome of the lawsuit but allows the challenged executive order to remain in force while the legal battle continues.
