On Oct. 28, 2026, the organizations challenging Executive Order (EO) 14398, “Addressing DEI Discrimination by Federal Contractors,” voluntarily dismissed their lawsuit without prejudice. The plaintiffs cited the court’s recent conclusion that the EO is limited to conduct already prohibited by federal antidiscrimination law.

As previously reported, in National Association of Diversity Officers in Higher Education v. Trump, the U.S. District Court for the District of Maryland declined to temporarily block the EO on Oct. 14, 2026. Plaintiffs had argued the language of the required contract certification clause under the EO was unconstitutionally vague. In rejecting the argument, the court interpreted the use of the term “disparate treatment” in the new contract clause to mean unlawful intentional discrimination. It also clarified that the required contract certification clause applies only to the work performed for the government under the contract containing that clause.

In their dismissal notice, the plaintiffs emphasized those limitations, explaining that the court provided enough clarity for contractors to know how to proceed. The plaintiffs also highlighted the court’s explanation that teaching and research about race, ethnicity, diversity, equity, or inclusion do not, on their own, constitute prohibited discrimination. The notice further cited the court’s recognition that contractors could potentially challenge federal enforcement actions targeting protected speech or activities beyond the EO’s scope.

Following the voluntary dismissal, the EO and its implementing contract certification requirements remain in place. Contractors should review applicable contract language and assess their programs in light of the court’s interpretation and existing antidiscrimination requirements.

If you have questions about your organization’s government contracts or EO 14398, contact a Jackson Lewis attorney.