In late March 2025, a federal court put the brakes on portions of two executive orders aimed at ending federal support for Diversity, Equity, and Inclusion (DEI) programs, citing First Amendment concerns. The case involved a nonprofit supporting women in skilled trades (CHICAGO WOMEN IN TRADES) that faced harm due to directives from the Department of Labor (DOL) requiring grantees to cease DEI-related activities.
The court ruled that these directives likely violated free speech protections by discouraging DEI-related expression.
The court issued a nationwide injunction barring the DOL from enforcing a certification requirement for grantees to confirm they don’t promote DEI programs, while blocking a termination provision only for the nonprofit that sued. The injunction is temporary, and an appeal is expected.
Now what?
We wait for the final decision. In the meantime, employers should stay cautious, avoid overcorrecting, and avoid expanding federally funded DEI initiatives until further clarity.
It’s also important to review grant terms for potential risks and stay updated on legal developments. This ruling creates legal uncertainty for DEI programs tied to federal funds, and employers should be prepared to adjust as the case progresses.
Get the full case docket here https://storage.courtlistener.com/recap/gov.uscourts.ilnd.473983/gov.uscourts.ilnd.473983.52.0_2.pdf
