President Trump recently enacted several executive orders to reduce the use of Diversity, Equity, and Inclusion (“DEI”) and Diversity, Equity, Inclusion, and Accessibility (“DEIA”) programs and policies by organizations that receive federal funding, grants, and/or contracts. These orders include:
- Executive Order No. 14151—Ending Radical and Wasteful Government DEI Programs and Preferencing: Ends the provision of federal “equity related” grants and contracts as well as DEI/DEIA employee performance requirements for contractors and grantees.
- Executive Order No. 14168—Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government: Orders agencies to end federal funding of “gender ideology,” which the Order defines as a “replace[ment] [for] the biological category of sex” and an “ever-shifting concept of self-assessed gender identity
. . . [which] all institutions . . . [must] regard . . . as true.” - Executive Order 14173—Ending Illegal Discrimination and Restoring Merit-Based Opportunity: Conditions the receipt of federal contracts and grants on a certification from recipients that they do not operate DEI/DEIA programs.
- Executive Order 14187—Protecting Children from Chemical and Surgical Mutilation: Prevents the provision of federal research or education grants to medical institutions that provide permanent and semi-permanent gender-affirming procedures.
- Executive Order 14201—Keeping Men Out of Women’s Sports: Prevents the provision of federal funding to educational programs that allow transgender girls and women to participate in women’s sports.
Judicial Challenges to Executive Orders
The Fourth Circuit Court of Appeals recently lifted a nationwide block which prevented the enforcement of Executive Orders 14151, 14168, and 14173 in their entirety. Nat’l Ass’n of Diversity Officers in Higher Educ. v. Trump, No. 25-1189, 2025 WL 750690 (4th Cir. March 14, 2025). However, individual parts of these executive orders have been rendered unenforceable by other courts. In Minnesota specifically, provisions of these executive orders which cut federal funding for programs promoting “gender ideology” and healthcare providers offering gender-affirming care for those under the age of nineteen have been rendered unenforceable. Washington v. Trump, No. 2:25-cv-00244-LK, 2025 WL 659057 (W.D. Wash. Feb. 28, 2025). In short, the landscape related to these Executive Orders and legal changes is changing rapidly. It is therefore important to monitor the Orders that relate to your organization carefully, and frequently.
How Will These Executive Orders Impact Organizations?
Impacts on Federal Grant and Contract Recipients
Organizations that receive federal grants or contracts related to DEI/DEIA or environmental justice should anticipate the termination of these grants and/or contracts altogether. Recipients of general federal grants and/or contracts (i.e. Grants and/or contracts awarded for purposes unrelated to DEI/DEIA or environmental justice) should be prepared to certify that they do not promote DEI/DEIA as a condition of their receipt of these federal benefits. Since federal agencies are encouraged to prioritize investigation into organizations that receive federal grants or contracts and are or may be engaged in DEI/DEIA activities, these organizations should anticipate legal and compliance costs associated with preventing or addressing administrative proceedings.
Internally, organizations receiving federal funding or contracts need to ensure that their hiring practices do not involve DEI/DEIA-based criteria that could be seen as giving preferential treatment based on race, gender, or other protected categories. DEI/DEIA training and policies—as well as training and policies that may be construed as relating to DEI/DEIA—may need to be modified or removed to ensure compliance with these executive orders.
Finally, these executive orders will very likely impact employee recruitment and retention for organizations receiving federal funding, grants, and/or contracts.
Impacts on Educational and Healthcare Institutions
Places of higher education and medical providers that receive federal funding must revise or end their DEI/DEIA programs and policies to avoid funding cuts or administrative proceedings. Further, institutions which allow transgender women to play in women’s sports programs may face similar federal funding cuts or administrative proceedings.
It is important to note that in Minnesota, at least for now, funding may not be cut to healthcare providers on the basis that they offer gender-affirming care to those under the age of nineteen.
Next Steps for Impacted Organizations
Organizations impacted by these executive orders should consider taking the following steps to ensure compliance and reduced risk:
- conduct internal audits to assess the use of DEI/DEIA in hiring practices and company policies and make necessary changes to comply with these executive orders;
- stay informed about ongoing litigation and court rulings on these executive orders; and
- consult an attorney to develop legal strategies to ensure compliance or defend against policy challenges or enforcement actions.
* A special thanks to Fidelina G. Valverde-Rivera for her assistance with this post.