States Sue to Block Agencies from Adding Anti-DEI Clauses to Government Contracts

Short summary

Nineteen states sued to block Executive Order 14398, which requires federal contractors to prohibit DEI activities in government contracts by July 24. States argue the EO exceeded agency authority with vague language and improper False Claims Act materiality clauses. The case reflects DOJ's escalating enforcement against DEI-related contractor practices, exemplified by IBM's $17M settlement.

• •19 states filed suit challenging EO 14398's mandatory anti-DEI contract clause
• •States argue the order violates Administrative Procedure Act and contains unenforceable vague language
• •DOJ pursuing aggressive DEI-related contractor investigations, as shown by IBM's $17M settlement

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