CHICAGO (AP) — A federal judge has issued a temporary injunction preventing the U.S. Department of Labor from enforcing certain aspects of President Donald Trump’s executive orders aimed at limiting diversity, equity, and inclusion (DEI) initiatives among federal contractors and grant recipients.
Judge Matthew Kennelly of the U.S. District Court for the Northern District of Illinois has stopped the Labor Department from mandating that federal contractors and grant recipients certify that they do not have any programs that violate Trump’s anti-DEI executive orders.
This certification requirement has increased pressure on companies and various organizations to reassess their DEI strategies; if the government finds they are not in compliance, they could face severe financial repercussions under the False Claims Act.
Thursday’s ruling responds to a lawsuit filed by Chicago Women in Trades, a nonprofit established in 1981 that assists women in training for skilled construction careers and holds multiple contracts with the Department of Labor. There was no immediate response from Chicago Women in Trades regarding Kennelly’s order, and the Department of Justice has not yet commented.
A hearing for Chicago Women in Trades’ request for a longer-term injunction against Trump’s anti-DEI executive orders is set for April 10.
This lawsuit is one of several challenging Trump’s executive orders that target DEI initiatives in both public and private sectors.
On his first day in office, Trump signed an order instructing federal agencies to terminate all “equity-related” grants or contracts, followed by another order requiring that federal contractors and grantees confirm they do not “operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.”
Kennelly’s ruling comes just under two weeks after an appeals court removed a broader nationwide injunction against Trump’s anti-DEI executive orders in a different lawsuit in Baltimore. However, Thursday’s ruling is limited in scope, as Kennelly chose not to extend the temporary restraining order to other federal agencies.
In its case against the Trump administration, Chicago Women in Trades argued that the executive orders regarding DEI are so vague and broad that the organization cannot guarantee compliance, thus jeopardizing its fundamental mission.
Kennelly noted that Chicago Women in Trades, represented by the Lawyers’ Committee for Civil Rights Under Law, is likely to prevail in its argument that certain aspects of the executive orders infringe upon free speech rights and are unconstitutionally vague.
The government maintained that the certification provision “only relates to illegal DEI programs,” yet it has failed to clarify what this entails. The implications are anything but clear,” Kennelly remarked.
He decided to expand his ruling to include all Labor Department contractors and grant recipients, citing that the ambiguity of Trump’s executive orders, combined with the threat of financial penalties, would likely coerce organizations to limit DEI efforts, potentially violating free speech rights.
To avoid severe penalties, “many of these grantees are likely to take the safer option and refrain from discussing anything that the government may consider to promote DEI or equity. A nationwide restraining order is necessary to protect grantees who cannot afford to take the risks involved in challenging the government,” Kennelly stated.
The judge also prohibited the DOL from halting or withdrawing funding from Chicago Women in Trades, and from pursuing any False Claims Act enforcement actions against them.
During a hearing on Tuesday, the Trump administration argued that Chicago Women in Trades’ plea for relief arose prematurely since its assertions are based on speculation about how the executive orders will be enforced.
However, Chicago Women in Trades highlighted in court documents that they have received multiple communications from the Department of Labor directing them to comply with both DEI executive orders. They also reported in court that they have already lost a subcontract due to efforts from a contractor trying to adhere to the executive order.
Chicago Women in Trades has a longstanding history of collaborating with companies, state and federal agencies, and other industry stakeholders to provide training and guidance on effective practices for recruiting and retaining women in the trades— including initiatives to combat bias and harassment pervasive in one of the country’s most male-dominated fields.
The organization’s grant work with the federal government spans many years, including two grants awarded during the first Trump administration under the Women in Apprenticeship and Nontraditional Occupations program, which aims to broaden pathways for women entering skilled trades.
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