Illinois Federal Court Upholds Nationwide Injunction of Key Part of DEI Executive Order

Quick Hits

• An Illinois federal judge refused to limit a preliminary injunction blocking the enforcement of a provision in President Trump’s Executive Order 14173 aimed at restricting federal funding recipients from operating DEI programs.
• A trade group successfully challenged the provision, arguing it violated the First Amendment and created a chilling effect on collaborative efforts within the skilled trades industry.
• The ruling signifies a victory for challengers to the Trump administration’s efforts to limit DEI initiatives, despite the Supreme Court’s recent decision suggesting restrictions on universal injunctions.

CWIT is a nonprofit that promotes gender equality in the skilled trades industry with nationwide training and technical assistance. CWIT challenged EO 14173 and Executive Order 14151. On April 14, 2025, the same district court issued a universal preliminary injunction enjoining DOL from enforcing EO 14173’s Certification Provision against any DOL grantee or contractor. The Certification Provision directs federal agency heads to include two terms in every contract or grant award:

• Materiality term: The recipient agrees that compliance with all applicable federal anti-discrimination laws is material to the government’s payment decisions for the purposes of the False Claims Act; and
• DEI certification: The recipient certifies “it does not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.”

Applying the Supreme Court’s guidance in Trump v. CASA, on October 30, 2025, the court held that enjoining enforcement of the Certification Provision against all DOL grant recipients is necessary to provide complete relief to CWIT. The district court found that CWIT was likely to succeed on the merits of its First Amendment challenge, as the Certification Provision regulated speech and conduct beyond the scope of federal grants.

The district court further held that the broad scope of the injunction was necessary to provide complete relief to CWIT and to prevent the chilling effect on protected speech of other grantees and contractors. In particular, the district court found the lack of definition of the Certification Provision, which is backed by the False Claims Act risk, created a widespread chilling effect on recipients’ speech and non-grant programs. Citing the inherent collaborative mission of CWIT, the court noted that limiting relief to CWIT or named partners would leave a barrier in place as potential collaborators could still face certification risk and be deterred from engaging with CWIT.

“The government’s argument assumes that a cognizable injury occurs only when the Certification Provision cuts off CWIT’s relationship with another recipient who is ready to partner, or has already partnered, with CWIT,” the district court said. “In reality, the chilling effect from the Certification Provision harms CWIT much sooner. It disrupts CWIT’s existing collaborations, as the government focuses on, but it also risks dissuading others from beginning discussions with CWIT; from reaching out to CWIT themselves; or from contemplating, internally, whether to do so.

“That effect—and the corresponding harm to CWIT—applies to anyone subject to the Certification Provision (including those who are considering applying for federal funding in the future), not just those CWIT is currently or likely to be partnered with,” the district court continued.

Next Steps

The government’s appeal of the April 14 injunction is pending in the Seventh Circuit. The district court’s October 30 decision confirms that, under CASA’s complete relief principle, a DOL-wide injunction remains appropriate to prevent First Amendment chilling and to protect CWIT’s collaborative work.

The injunction in this matter only bars DOL from enforcing the Certification Provision against DOL grantees and contractors. The decision does not reach other federal agencies.

Ogletree Deakins’ Diversity, Equity, and Inclusion Compliance, Government Contracting and Reporting, and Workforce Analytics and Compliance practice groups will continue to monitor developments and will provide updates on the Diversity, Equity, and Inclusion Compliance, Construction, Employment Law, Government Contracting and Reporting, and Workforce Analytics and Compliance blogs.

This article and more information on how the Trump administration’s actions impact employers can be found on Ogletree Deakins’ Administration Resource Hub.

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