Court Upholds Executive Order Prohibiting 'Racially Discriminatory DEI Activities' by Federal Contractors

A court has declined to block Executive Order 14398, which directs federal executive departments and agencies to include a clause in contracts and subcontracts prohibiting 'racially discriminatory DEI activities.' The order defines these activities as disparate treatment based on race or ethnicity in areas such as recruitment, employment, and resource allocation, with noncompliance potentially leading to contract termination or ineligibility for future government contracts.