Twenty attorneys general sued the Trump administration over a March 26 executive order affecting diversity, equity and inclusion programs among federal contractors. The lawsuit filed by Maryland and others (Maryland, et al. v. Hegseth et al.) argues the order impedes states’ efforts to prevent racial discrimination and is unclear about what contract provisions prohibit or require. Plaintiffs say the executive order offers no useful explanation of how it imposes obligations beyond existing law. They also point to reporting demands—including “books, records and accounts”—and the order’s penalty structure, which can include canceling or suspending contracts for noncompliance. The administration faces another lawsuit from a coalition led by the National Association of Diversity Officers in Higher Education, which warned federal contractors are placed in an “impossible bind” between signing away freedoms or losing business. The case matters for universities and contractors tied to federal work, especially where campus services and procurement intersect with DEI-related compliance.