Court Lets Federal Contractor DEI Order Stand During Litigation

A federal court declined to block EO 14398, keeping contractor DEI restrictions in effect.

HR Solution Journal News Desk

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A Maryland federal court refused to preliminarily block Executive Order 14398, which requires federal contracts to include a clause prohibiting what it defines as racially discriminatory DEI activities. In its October 14, 2026 ruling, the court interpreted the prohibition as targeting only unlawful intentional discrimination already barred under federal law, and limited its reach to work performed under contracts containing the clause. The case is ongoing and no final ruling has been issued. HR and procurement teams at federal contractors should review applicable contract language and evaluate how their DEI programs relate to covered contract work.

Source: HR Daily Advisor. Original announcement: November 09, 2026.