By Jan Wolfe

A federal appeals court allowed the Trump administration to implement bans on diversity, equity and inclusion programs at federal agencies and businesses that contract with the federal government.

In a late Friday decision, a three-judge panel of the Fourth U.S. Circuit Court of Appeals in Richmond, Va., lifted a lower court injunction that halted the enforcement of two Trump executive orders targeting DEI programs.

The ruling, which came in a lawsuit by the city of Baltimore and three advocacy groups, wasn't a final judgment on whether the orders are lawful, but allows the Trump administration to enforce them while litigation unfolds. The appeals court said it would set an expedited briefing schedule to hear arguments, but a decision could still take months.

Trump signed the two executive orders at issue in the litigation soon after retaking the White House.

One of the orders directed federal agencies to eliminate all DEI programs throughout the government. The other eliminated mandates for federal contractors to maintain affirmative-action programs, and required recipients of federal grants and contracts to certify that they don't operate unlawful DEI programs.

The three judges on the panel -- two of whom were appointed by President Barack Obama -- all wrote separate concurring opinions. While all three agreed to lift the Feb. 21 injunction imposed by U.S. District Judge Adam Abelson, they signaled potential disagreement on the ultimate question of whether Trump's executive orders are constitutional.

The two Obama appointees on the panel, Judges Albert Diaz and Pamela Harris, said they hadn't reached a final conclusion on whether the orders are lawful, adding that it might depend on how they are implemented.

"This is a difficult case that will benefit from more sustained attention than we can give it in the present posture," Harris wrote. "But for now, I believe the government has shown a sufficient likelihood of success to warrant a stay until we can hear and decide its appeal."

Judge Allison Jones Rushing, a Trump appointee, wrote separately to say the administration was likely to succeed in demonstrating the executive orders were constitutional.

Baltimore's city council filed the lawsuit, arguing Trump "cannot usurp Congress's exclusive power of the purse, nor can he silence those who disagree with him by threatening them with the loss of federal funds and other enforcement actions."

The city was joined by three co-plaintiffs that have received federal funding and promote DEI.

In his Feb. 21 ruling, Abelson said Trump's orders were unconstitutionally vague and infringed upon the First Amendment rights of private contractors that wish to support diversity efforts.

Write to Jan Wolfe at jan.wolfe@wsj.com

(END) Dow Jones Newswires

March 14, 2025 22:05 ET (02:05 GMT)

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