Federal Judge Blocks Trump Administration’s Ban on DEI Grants and Contracts

A federal judge in Maryland has issued a nationwide injunction blocking the Trump administration from enforcing an executive order terminating federal grants and contracts related to Diversity, Equity, and Inclusion (DEI) programs.

U.S. District Judge Adam Abelson ruled Friday that the administration’s ban on equity-related programs was too vague and risked arbitrary enforcement over billions in federal funding.

Plaintiffs have amply established a likelihood that they will succeed in proving that the Termination Provision invites arbitrary and discriminatory enforcement over billions of dollars in government funding,” Abelson wrote in his decision.

The ruling prevents federal agencies from:

  • Terminating grants and contracts due to alleged DEI-related activity.
  • Forcing contractors and grant recipients to certify that they do not engage in “equity-related” initiatives.
  • Pursuing enforcement actions against those who continue such programs.

The Justice Department and the White House did not immediately respond to requests for comment.


Why Was the DEI Ban Blocked?

In January 2025, President Donald Trump signed an executive order directing all federal agencies to eliminate DEI-related programs from federal contracts, grants, and funding initiatives. The order required recipients of federal funds to certify that they do not engage in any equity-related activities.

However, the court found the language too broad and vague to be enforceable.

If an elementary school receives Department of Education funding for technology access, and a teacher uses a computer to teach the history of Jim Crow laws, does that risk the grant being deemed ‘equity-related’ and the school being stripped of funding?” Abelson questioned in his ruling.

The judge concluded that the lack of clarity could lead to selective enforcement and political weaponization of federal funding.


Impact of the Ruling

The temporary injunction halts enforcement of the executive order nationwide, protecting thousands of organizations, including:
✅ Universities and research institutions
✅ Nonprofits providing community services
✅ Businesses with federal contracts
✅ Public school districts and local governments

Without the injunction, billions in federal grants and contracts could have been revoked, impacting programs related to education, healthcare, workforce development, and civil rights initiatives.

Legal Experts Weigh In

  • David Cole, legal director of the ACLU, said the ruling “prevents the federal government from using vague, politically motivated criteria to punish organizations engaging in lawful activities.”
  • Kristen Clarke, head of the Lawyers’ Committee for Civil Rights Under Law, praised the decision as a “critical defense against overreach that could disproportionately harm marginalized communities.”

However, conservative legal groups have vowed to challenge the ruling, arguing that DEI initiatives lead to government overreach and unfair advantages for specific groups.

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