Fourth Circuit Stays Enforcement of Injunction on IE&D Executive Orders

On March 14, 2025, the U.S. Court of Appeals for the Fourth Circuit stayed enforcement of a preliminary injunction issued by a Maryland district court judge. This injunction had barred the Trump administration from proceeding with several elements of Trump’s executive orders regarding Diversity, Equity, Inclusion, and Accessibility (DEI or DEIA). The appellate panel, consisting of three judges, issued a short order indicating that the government had satisfied the factors for a stay as set forth by the U.S. Supreme Court. The decision appears to stem from a disagreement with the lower court’s determination that the plaintiffs are likely to prevail on the merits. While the judges agreed that actions taken by federal agencies pursuant to the executive orders could be unconstitutional, they found that the orders themselves are not unconstitutional.

Judge Harris provided the most detailed explanation for her vote, stating that the executive orders are of limited scope and do not establish the illegality of all efforts to advance DEI. The “Certification” and “Enforcement Threat” provisions apply only to conduct that violates existing federal anti-discrimination law. The “Termination” provision directs the termination of grants based on the nature of the grant-funded activity itself, subject to legal limits. However, Judge Harris noted that agency enforcement actions that exceed the orders’ narrow scope may raise serious First Amendment and Due Process concerns.

This decision allows executive agencies to require contractors and grant recipients to certify that they do not operate programs violating federal anti-discrimination laws. However, the manner in which agencies proceed may still face challenges on constitutional grounds and for failing to comply with required administrative procedures. Federal contractors and grant recipients should consult legal counsel before agreeing to these provisions due to potential legal consequences, including exposure to claims under the False Claims Act.

The Fourth Circuit’s decision will impact IE&D programs by increasing scrutiny, necessitating compliance reviews, modifying training programs, and requiring clear communication strategies with employees.

This is an excerpt: To read the original blog please click here.
Fourth Circuit Stays Enforcement of Injunction on IE&D Executive Orders