In Chicago, a federal judge has issued a temporary injunction against certain actions by the U.S. Department of Labor related to President Donald Trump’s executive measures aimed at constraining diversity, equity, and inclusion (DEI) efforts among federal contractors and grant recipients. The ruling from Judge Matthew Kennelly of the U.S. District Court for the Northern District of Illinois prevents the Labor Department from mandating federal contractors or grant recipients to affirm that their programs do not breach Trump’s executive orders on DEI.
The certification requirement has increased pressure on businesses and other entities to reevaluate their DEI strategies, as non-compliance could result in severe financial consequences under the False Claims Act. This court decision originated from a lawsuit filed by the Chicago Women in Trades, a nonprofit organization formed in 1981 dedicated to preparing women for careers in skilled construction trades, and which benefits from several Department of Labor grants.
The organization claims that the president’s DEI-related executive orders are overly broad and ambiguous, posing a threat to its mission due to the lack of clear guidance for compliance. Consequently, the judge restrained the Labor Department from withholding or canceling financial assistance to the organization and barred the Trump administration from pursuing False Claims Act actions against it.
Sabrina Talukder, senior counsel for the Lawyers’ Committee for Civil Rights Under Law, representing the nonprofit, emphasized the ruling’s importance in ensuring the organization’s continued impact in aiding women to achieve financial stability through careers in trades and enhancing workplace safety for women over the last forty years. A Department of Justice representative declined to comment on the temporary injunction beyond what was filed in court, with a hearing for a more permanent halt to the executive orders slated for April 10.
The case from Chicago Women in Trades is not an isolated instance, as it joins other legal challenges against Trump’s executive directives affecting DEI initiatives in both private and public sectors. The president initially issued an order on his first day aiming to terminate all contracts and grants related to equity. A subsequent order required federal contractors and grantees to certify the absence of DEI-promoting programs that violate federal anti-discrimination regulations.
Judge Kennelly’s ruling follows a broader lifting of an injunction affecting Trump’s executive orders in a separate Baltimore lawsuit. However, his decision is limited to the Labor Department contractors and grant recipients because of the executive orders’ vagueness and the financial risks tied to them, which likely intimidate organizations into limiting DEI initiatives that could otherwise infringe on their free speech rights.
Instead of risking significant penalties, “many grantees are expected to take the cautious path and avoid discussing or supporting DEI or equity initiatives,” Kennelly noted. He emphasized that a nationwide restraining order is necessary to shield grantees who are unable to withstand the risks of defying government stipulations, suggesting the potential threat to free speech is tangible.
In a recent hearing, the Trump administration contested the lawsuit, arguing that Chicago Women in Trades’ concerns were speculative regarding the implementation of the executive orders. Nevertheless, the judge underscored that the apprehension about grant recipients being targeted by the Certification Provision is well-founded, citing a Department of Labor email on March 20 directing 60 organizations, including Chicago Women in Trades, to cease all DEI activities in alignment with the executive orders.
Judge Kennelly also noted the loss of a subcontract by Chicago Women in Trades with a Department of Labor contractor adhering to the executive guidelines. The nonprofit, known for its collaborations to increase female participation in skilled trades, has a longstanding history with government grant work, including during the first Trump administration under the Women in Apprenticeship and Nontraditional Occupations initiative.