A coalition of plaintiffs asked a Maryland judge to block President Trump’s executive order that targets diversity, equity and inclusion activities among federal contractors, arguing the order forces contractors into an “impossible bind” over speech and association. The lawsuit, represented by Democracy Forward and led by the National Association of Diversity Officers in Higher Education, argues the contract clause violates the First and Fifth Amendments and the Administrative Procedure Act. Plaintiffs seek a preliminary injunction, warning of irreparable harm if compliance requirements begin. The order directs executive departments and agencies to insert a clause into federal contracts and subcontracts requiring partners to agree they will “not engage in any racially discriminatory DEI activities” or risk cancellation. Agency leaders are set to comply by July 24. The coalition describes the policy as a “gag rule dressed up as a contract clause,” in court filings. The litigation is tied to a broader sequence of DEI actions, including prior executive orders that drew injunctions and appellate reversals, keeping the federal contractor framework in the center of campus legal risk planning for compliance offices and procurement-linked offices.