States Challenge Trump Order on Federal Contracts

In Baltimore, attorneys general from 19 states and Washington, D. C. , filed a lawsuit against the Trump administration. They say federal agencies are adding new clauses to contracts that forbid “racially discriminatory DEI activities. ” The changes were made after a March executive order from President Trump aimed to remove diversity, equity and inclusion programs from government contractors. The plaintiffs argue the agencies acted without proper notice or public comment, violating the Administrative Procedure Act. The lawsuit claims that over 640, 000 contracts could be affected, involving more than 34, 000 unique contractors nationwide. States say these clauses threaten existing agreements worth billions of dollars. The legal action seeks to stop the new terms from being imposed on federal contracts.Separately, university faculty and minority business groups sued in the same court. They contend that Trump’s order infringes on First Amendment free‑speech rights for contractors. Their request for a preliminary injunction could halt the order while the case proceeds. Supporters of DEI argue that these initiatives help correct historic injustices for women, LGBTQ people and racial minorities. Critics, including Trump and many conservatives, claim DEI discriminates against white people and men and undermines merit‑based hiring. The Trump administration has issued multiple orders to dismantle DEI programs in federal agencies, higher education and grant recipients. The current lawsuit, Maryland v. Hegseth, is pending in the U. S. District Court for the District of Maryland.