# Maryland Court Allows DEI Contract Rules

On October 16, 2026, U.S. District Judge Adam B. Abelson denied a preliminary injunction against Executive Order 14398, signed March 26, 2026, leaving its provisions for covered federal contracts in effect while the lawsuit proceeds. The court read the restrictions narrowly as addressing intentional race- or ethnicity-based discrimination and applying to work under contracts with the relevant provisions; the ruling does not resolve the order’s legality or automatically extend the restrictions to all contractor activities.

- Contractors with applicable contract clauses must assess the order’s requirements and review related policies and compliance certifications. The decision leaves those provisions operative for covered work during the litigation.
- A breach may lead to contract termination or suspension, and could create False Claims Act exposure where statutory requirements are met.
- Companies should identify which contracts contain the relevant provisions and evaluate their policies and certifications against those clauses, rather than assuming the ruling applies to all company activities.

**Jurisdictions:** federal
**Topics:** Regulatory Compliance, Policy
**Published:** October 15, 2026

### Government Entities
- U.S. District Court for the District of Maryland
- U.S. federal government

### Sources
- [Trump DEI Contractor Order Survives Court Challenge](https://www.lawyer-monthly.com/2026/10/us-judge-refuses-to-block-trump-dei-order-for-federal-contractors) - Lawyer Monthly