Insight

Fourth Circuit Court of Appeals Allows for Enforcement of DEI-Related Executive Orders Pending Appeal

On March 14, 2025, The U.S. Court of Appeals for the Fourth Circuit granted the government’s request to stay a nationwide preliminary injunction.

Matthew F. Wagner

Written by Matthew F. Wagner

Published: June 18, 2026

On March 14, 2025, The U.S. Court of Appeals for the Fourth Circuit granted the government’s request to stay a nationwide preliminary injunction that blocked enforcement of elements of President Trump’s Executive Order 14173 (signed January 21, 2025) ending DEI programs within federal grant and contract processes, and his similar Executive Order 14151 (signed January 20, 2025) ending the federal government’s DEI initiatives, programs, and equity-related grants or contracts (collectively, the “Executive Orders”).

The February 21, 2025 nationwide preliminary injunction, entered by Judge Abelson of the U.S. District Court for the District of Maryland, blocked enforcement of multiple provisions of the Executive Orders relating to DEI programs. The three-judge panel of the Fourth Circuit unanimously granted the government’s request to stay the preliminary injunction. The panel found that the government had demonstrated a likelihood of success on the merits of its appeal, thus satisfying the requirements for a stay of the injunction. The effect of the stay is that the government will be able to enforce the Executive Orders without restriction while the appeal of the preliminary injunction is pending.

Specifically, federal agencies may now do the following:

  • Require federal contractors and grantees to certify that they do not operate any programs “promoting DEI that violate any applicable Federal anti-discrimination laws” and that they are in compliance with applicable Federal anti-discrimination laws. Federal contractors and grantees also must acknowledge that compliance is “material to the government’s payment decisions,” thus triggering potential liability under the False Claims Act for violating the certification requirement. Note, however, that EO 14173 allowed federal contractors to continue operating under the prior regulatory scheme for 90 days from the date of the Order (i.e., until April 21, 2025). At this point, it is unclear what the new rules will be for entities that bid on federal or federally funded contracts.
  • Develop a strategic enforcement plan, with the Attorney General’s assistance, to end illegal discrimination and preferences, including DEI, in the private sector. Agency strategic enforcement plans may lead to investigations of and enforcement actions against private sector organizations.
  • Terminate all “equity related” grants or contracts within 60 days as directed in EO 14151.

WHAT IS NEXT?

Federal contractors should expect updates from the Office of Federal Contract Compliance Programs (OFCCP) regarding compliance with EO 14173 as the 90-day deadline approaches. The Fourth Circuit has ordered an expedited briefing schedule for the full appeal of the preliminary injunction, with the government’s opening brief due on April 8, 2025, and the Plaintiffs’ response brief due on May 8, 2025. The appeals process will likely take several months, and the Court is unlikely to issue an opinion before early summer 2025. In the meantime, federal contractors and grantees should be prepared to comply with direction from the OFCCP as it comes out. Hahn Loeser & Parks will continue to monitor this issue and provide updates as they become available.

Trending Articles

Recognizing Legal Leaders: The 2027 Best Lawyers Awards in Australia, Japan and Singapore


by Jamilla Tabbara

Market drivers, diversity trends and the elite practitioners shaping the legal landscape.

Illustrated maps of Australia, Japan and Singapore displayed with their national flags, representing

How Far Back Can the IRS Audit You?


by Bryan Driscoll

Clear answers on IRS statutes of limitations, recordkeeping and what to do if you are under review.

Gloved hand holding a spread of one-hundred-dollar bills near an IRS tax document

Musk v. Altman: The Lawyers Behind the Case


by Jamilla Tabbara

Meet the Trial Lawyers Shaping One of AI's Biggest Legal Disputes.

Portrait photos of Elon Musk and Sam Altman positioned in front of the OpenAI logo.

The Best Lawyers in France 2027: Peer-Reviewed Excellence


by Jamilla Tabbara

Seventeen editions of peer trust, a growing profession and a dynamic legal market.

3D Map of France with National Flag Graphic

Announcing the 2027 Best Lawyers Awards: Austria, Germany and Switzerland


by Jamilla Tabbara

Celebrating the legal professionals throughout Central Europe.

Graphic displaying three-dimensional map cutouts of Austria, Germany and Switzerland.

The Legal Teams Behind the Blake Lively–Justin Baldoni Settlement


by Grace Greer

A closer look at the legal teams and attorneys involved in the Blake Lively–Justin Baldoni litigation and its resolution.

Split-screen image of Blake Lively and Justin Baldoni

How AI Is Changing the Way Clients Find Lawyers


by Jamilla Tabbara

Best Lawyers CEO Phil Greer explains how AI-driven search tools are reshaping legal marketing and why credibility markers matter.

AI chat bubble icon with stars representing artificial intelligence transforming client-lawyer conne

Colorado’s 2026 Water Rights Battles


by Bryan Driscoll

A new era of conflict begins.

Colorado Water Rights 2026: A New Era of Conflict headline

When Is It Too Late to Stop Foreclosure?


by Bryan Driscoll

Understanding the foreclosure timeline, critical deadlines and the legal options that may still protect your home.

Miniature house model on orange background surrounded by thumbtacks representing foreclosure

Can You Go to Jail at an Arraignment?


by Bryan Driscoll

Understanding What Happens at Your First Court Appearance.

A heavy chain lying on the ground in the foreground with a blurred figure standing in the background

What’s the Difference Between DUI and DWI?


by Bryan Driscoll

Understanding the terminology and consequences of impaired driving charges.

Driver during nighttime police traffic stop with officer's flashlight shining through car window

How to Choose a Personal Injury Lawyer


by Bryan Driscoll

Finding the right legal representation after an injury is a critical decision that requires careful evaluation. 

3D scene representing the deliberative process of choosing a personal injury attorney

What Happens if You Don't File Taxes


by Bryan Driscoll

The penalties are real, but so are your options. Here's what the IRS can do and what you can do about it.

A torn dollar bill revealing a watchful eye, surrounded by flying documents

When to Get a Lawyer for Work Injury


by Bryan Driscoll

Understanding your rights and navigating the complexity of workers’ compensation claims.

Injured worker receiving medical attention at workplace

What Disqualifies You From Filing Bankruptcies


by Bryan Driscoll

A guide to navigating eligibility, the means test and the legal hurdles of declaring bankruptcy.

A silhouette of a large hand pushing over a row of falling dominos toward a small figure standing be

Legal Separation vs. Divorce


by Bryan Driscoll

A clear guide to understanding the legal, financial and emotional differences between separating and ending a marriage.

Miniature figures of two people standing apart with a child figure between them on a cracked surface