State AGs File Suit To Block Agency Actions Implementing DEI Executive Order

Attorneys general from 19 states and the District of Columbia (State AGs) recently sued to block the federal government’s implementation of Executive Order 14398, “Addressing DEI Discrimination by Federal Contractors” (Order or EO). The State AGs argue that the actions federal agencies are taking to execute the Order violate the Administrative Procedure Act (APA) because, among other reasons, the agencies subverted the statutorily required “notice and comment” process and the rule change fails to provide guidance on what is now forbidden, given existing anti-discrimination requirements. The State AGs allege that, in their capacity as federal contractors, the Order places “hundreds of contracts worth billions of dollars” at risk.