Fourth Circuit Lifts Injunction on Key DEI Executive Order Provisions

By James C. King and Kimberly J. Korando

The Fourth Circuit recently lifted the nationwide preliminary injunction that had blocked federal agencies from carrying out key provisions in two of President Trump’s Executive Orders on Diversity, Equity and Inclusion:

• Executive Order 14151 “Ending Radical and Wasteful Government DEI Programs and Preferencing;” and
• Executive Order 14173 “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.”

The preliminary injunction had been issued by the district court on February 21, 2025. See Court Puts Key DEI Executive Order Provisions on Indefinite Hold. The Trump administration filed a motion to lift the injunction shortly after it went into effect. On March 14, 2025, the Fourth Circuit granted the request pending the administration’s appeal of the lower court’s decision. Although the three judge panel voted unanimously to stay injunction, each judge provided a separate concurring opinion.

As a result, the Trump administration is no longer restricted from:

• pausing, freezing, impeding, blocking, canceling, or terminating any awards, contracts or change the terms of any contract or obligation based on the Termination Provision;
• requiring any grantee or contractor to make any “certification” or other representation pursuant to the Certification Provision; or
• bringing any False Claims Act enforcement action, or other enforcement action, pursuant to the Enforcement Threat Provision, including but not limited to any False Claims Act enforcement action premised on any certification made pursuant to the Certification Provision.

The underlying dispute regarding the legality of the Executive Orders remains ongoing. Accordingly, we will continue to monitor these developments and will provide additional updates as necessary. For now, information regarding options for compliance is available in our February 19, 2025 White Paper The DEI Executive Orders: Considerations for Assessing and Addressing Private Employer and Federal Contractor Programs.