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PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

We previously wrote about a Maryland District Court that issued preliminary injunctions barring the enforcement of the Trump administration’s Anti-DEI executive orders. Now a three-judge panel for the Fourth Circuit Court of Appeals has lifted the injunction, staying it while the litigation proceeds. Morrison Foerster writes about the development:

“The Fourth Circuit held that the government had satisfied the standards to stay the preliminary injunction while the case proceeds. The Fourth Circuit found that the government has demonstrated a likelihood of success on the merits of its appeals, but the judges appear to disagree on whether the administration’s enforcement of the DEI executive orders would be constitutional.”

This ruling isn’t dispositive on the merits of the case but allows the Trump administration to proceed with its anti-DEI policies while the case advances through the courts. While the ruling isn’t final, it is clear that irreversible damage will be done to DEI at the federal level while the case proceeds (see the next blog). This includes terminating equity-related government contracts and grants, and targeting DEI programs in the private sector with legal action. Although, while this injunction has been stayed, the Anti-DEI executive orders are being challenged in a number of other cases so it is possible that another injunction will be issued by another court in a different circuit. While the legal fight from DEI is far from over, the federal government’s actions will continue to have a chilling effect while the court battles play out.

*This blog has been edited to remove language regarding federal anti-discrimination requirements on federal contractors. We apologize for this oversight.

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The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile