States Challenge Federal Contractor DEI Executive Order

Short summary

Nineteen states and DC sued the federal government over Executive Order 14398, which prohibits federal contractors from engaging in racially discriminatory DEI activities and imposes reporting and compliance obligations. Plaintiffs argue the EO's requirements are vague, overlap with existing law, and were implemented without proper notice-and-comment procedures. The case is pending in Maryland federal court alongside separate higher-education challenges.

• •19 states and DC challenge EO 14398 prohibiting racially discriminatory DEI activities by federal contractors
• •Plaintiffs claim vague terms and lack of notice-and-comment violate the APA and procurement laws
• •Compliance obligations include flow-down clauses, subcontractor reporting, and False Claims Act exposure

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