20 Attorneys General Sue Trump Admin Over DEI Mandates for Federal Contractors

A coalition of 20 attorneys general filed a lawsuit against the Trump administration on Wednesday, alleging that federal agencies ignored legally required procedures and imposed unclear restrictions on contractors as part of the administration’s effort to stop diversity, equity, and inclusion (DEI) practices in government operations.

The lawsuit, filed in U.S. District Court for the District of Maryland, challenges an executive order signed by President Donald Trump on March 26 that prohibits racial discrimination.

The order requires agencies to use specific clauses in federal contracts and subcontracts to prohibit contractors from practicing “racially discriminatory DEI activities” while carrying out federal contract work.

Non-compliant institutions face penalties in the form of canceled contracts, termination, suspension, removal from future contract consideration, and potential liability under the False Claims Act.

The coalition of Democratic-led states contends that the agencies ran afoul of the Administrative Procedure Act and federal procurement laws by failing to provide public notice or solicit comments on the new requirements.

The attorneys general allege that the agencies acted outside the bounds of their legal authority and failed to adequately explain or justify the new policies.

The White House didn’t immediately return a request for comment.

The lawsuit seeks a declaration that the agencies’ actions are unlawful and an injunction barring enforcement of the new contract terms.

“This is yet another example of haphazard actions designed to confuse and intimidate rather than provide clear guidance to people and businesses – in this case, federal contractors,” Massachusetts Attorney General Andrea Joy Campbell said in a statement. “The Trump Administration is yet again showing that it is more interested in cutting corners to make headlines about eliminating DEI efforts than following the law, and we are taking action to protect contractors in Massachusetts and beyond.”

California Attorney General Rob Bonta expressed a similar sentiment.

“The Trump Administration keeps moving the goal posts, most recently imposing vague, confusing, and unsupported new conditions on billions of dollars in federal contracts,” Bonta said. “It is not doing so for the sake of efficiency or good government — and it is certainly not doing so out of concern for preventing racial discrimination. Instead, this appears to be yet another attack on lawful diversity, equity, and inclusion initiatives. We’re going to court — again — to protect the interests of our state and put a stop to the Trump Administration’s latest unlawfulness.”

The coalition includes attorneys general representing California, Colorado, Connecticut, District of Columbia, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and Maryland.

The Trump administration has worked to remove DEI programs in the federal government, starting shortly after Trump took office in January 2025, signing multiple executive orders to eliminate Biden-era DEI policies.

Trump’s March executive order defines DEI-based activities as practices in which entities treat employees or contractors based on race or ethnicity rather than merit.

“DEI activities also create unnecessary costs by reducing the pool of available labor by artificially limiting companies to hiring or promoting certain individuals, suppliers, or intermediaries based on their race or ethnicity,” Trump said in the order.