Update Applicable to:	Effective Date
All Covered Employers	April 15, 2025

What happened?

On April 15, 2025, a federal court extended its earlier block on the Department of Labor (DOL) from enforcing key provisions of Executive Orders 14151 and 14173 that target Diversity, Equity, and Inclusion (DEI) programs. The court issued a preliminary injunction in Chicago Women in Trades v. Trump et al., finding the provisions likely unconstitutional. This ruling builds on a temporary restraining order issued in March and will remain in effect while the case proceeds.

Overview:

The Court Said: The Certification Provision was found to be unconstitutionally vague, leaving grantees uncertain about what constitutes “illegal DEI.” The court emphasized the urgency of protecting free speech rights and found CWIT likely to succeed on the merits of its claim.

• The Termination Provision was also found to pose imminent harm to CWIT, but the court limited its ruling to CWIT’s specific grant relationships, noting that other grantees could bring their own legal challenges.

Why This Matters to Employers

• No Immediate Certification Requirement: DOL grantees and contractors are not currently required to certify that they do not operate DEI programs—removing a significant compliance burden and legal risk.

• DEI Programs Can Continue: Organizations receiving DOL funding can maintain DEI initiatives without fear of immediate termination or penalties under these executive orders.

• Uncertainty Remains: The ruling applies only to the DOL. Other agencies may still attempt enforcement, and several lawsuits are pending.

• Conflicting rulings are expected, and the issue may be decided by the U.S. Supreme Court.

Additional Information:

Timeline of Key Events

• February 26, 2025: Chicago Women in Trades (CWIT) filed a lawsuit against President Trump, the DOL, and other federal agencies, arguing that Executive Orders 14151 and 14173 violate the First and Fifth Amendments and improperly condition federal funding on the suppression of protected speech.

• March 27, 2025: U.S. District Judge Matthew F. Kennelly issued a Temporary Restraining Order (TRO):
  
  • Blocked the DOL from enforcing the Certification Provision (EO 14173) nationwide.
  • Blocked the DOL from enforcing the Termination Provision (EO 14151) only as it applied to CWIT and its related grants.

• April 15, 2025: The court issued a Preliminary Injunction, extending the TRO:
  
  • The Certification Provision remains blocked nationwide (as applies to the DOL).
  • The Termination Provision remains blocked only for CWIT.
  • The court found the provisions likely violate the First Amendment, citing vagueness, coercion, and suppression of free speech.

• April 16, 2025: The Department of Justice (DOJ) filed a compliance report confirming it had notified relevant agencies of the court’s order.

Source References

• President Trump Executive Orders: EO 14151 and EO 14173 
• The U.S. District Court of Illinois – TRO
• Chicago Women in Trades v. Trump et al. (Case number 1:25-cv-02005)

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