A federal judge has put a temporary stop to parts of President Donald Trump's orders that limit Diversity, Equity, and Inclusion (DEI) programs for federal contractors and grant recipients. Judge Matthew Kennelly from the Northern District of Illinois ruled that the U.S. Department of Labour cannot require federal contractors or grant recipients to certify that they do not run programs violating Trump's anti-DEI orders. 

A new certification rule is putting pressure on companies and organisations to review their Diversity, Equity, and Inclusion (DEI) policies. If the government finds that they violate this rule, they could face severe financial penalties under the False Claims Act. The ruling, issued on Thursday, is related to a lawsuit filed by Chicago Women in Trades, a nonprofit established in 1981. This organisation helps women enter skilled construction jobs and has several contracts with the Department of Labor. So far, Chicago Women in Trades has not responded to the court order and the Department of Justice has also not commented on the ruling. A hearing is set for April 10 on Chicago Women in Trades' request to extend the pause on Trump's executive orders against DEI programs.

The organisation is among several groups suing to challenge Trump's orders, which target diversity, equity, and inclusion (DEI) programs in both public and private sectors. On his first day in office, Trump signed an order directing federal agencies to end all grants or contracts related to diversity, equity, and inclusion (DEI). He later signed another order requiring federal contractors and grant recipients to confirm that their DEI programs comply with federal anti-discrimination laws. Nearly two weeks after an appeals court removed a nationwide block on Trump's anti-DEI orders in a separate Baltimore case, Judge Kennelly issued a ruling. However, his decision is more limited, as he did not extend the temporary restraining order to other federal agencies. Chicago Women in Trades sued the Trump administration last month, arguing that the president's executive orders on diversity, equity, and inclusion (DEI) are too vague and broad. Because of this, the organisation struggled to understand how to follow the rules, which could harm its core mission.

Judge Kennelly stated that the organisation, represented by the Lawyers' Committee for Civil Rights Under Law, is likely to win its case. He noted that parts of the executive orders may violate free speech rights and are unclear in their wording, making them unconstitutional. Judge Kennelly explained that the government claims the certification rule only affects illegal DEI programs, but it has not clarified what that actually means, making the issue unclear. He also stated that he expanded his order to include all Labour Department contractors and grant recipients because Trump's executive orders are vague. Combined with the risk of financial penalties, this uncertainty could force organisations to limit their DEI programs in a way that might violate free speech rights. “Rather than face potentially crippling penalties, it is likely that many of these grantees will take the safer route and choose to simply stop speaking on anything remotely related to what the government might consider to promote DEI or equity. A nationwide restraining order is appropriate to protect grantees who cannot afford the risks inherent in biting the hand that feeds them," Kennelly wrote.

The judge ruled that the Department of Labour (DOL) cannot freeze or cancel any funding for Chicago Women in Trades. The ruling also prevents the Trump administration from taking legal action against them under the False Claims Act. During a hearing on Tuesday, the Trump administration argued that Chicago Women in Trades' request for protection was premature, claiming that their concerns were based on speculation about how the executive orders would be enforced. However, Chicago Women in Trades pointed out in court that they had received multiple communications from the DOL instructing them to comply with the diversity, equity, and inclusion (DEI) executive orders. They also stated that they had already lost a subcontract with a contractor trying to follow the new rules. Chicago Women in Trades has been working for a long time with companies, state and federal agencies, and industry leaders to offer guidance and training on how to recruit and support women in skilled trades. They also provide training to address bias and harassment, which are common in this male-dominated field.

Their collaboration with the federal government goes back many years, including receiving two grants during the first Trump administration under the Women in Apprenticeship and Nontraditional Occupations program. This program is designed to create more opportunities for women to enter skilled trades.