Fourth Circuit Allows Implementation Of DEI Executive Orders To Proceed

On February 6, 2026, The U.S. Court of Appeals for the Fourth Circuit issued a final published opinion vacating the district court's preliminary injunction against several elements of Executive Order 14151, Ending Radical and Wasteful Government DEI Programs and Preferencing and Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, which imposed certain requirements on federal contractors and grantees of federal funds regarding DEI. Recipients of federal grants brought this action based on a claim that the requirements were unconstitutional on their face. While the Fourth Circuit's decision does not preclude future challenges to the administration's views as to what constitutes unlawful DEI or when contracts or grants may be terminated, the court has held that such challenges will have to be based on specific allegations that the executive orders are being implemented unlawfully. This means that federal contractors and grant