Maryland AG Joins Coalition Suing Over Federal Contractor Mandates Targeting DEI

Maryland Attorney General Anthony G. Brown has co-led a coalition of 20 state attorneys general in filing a lawsuit challenging new federal contract requirements that target diversity, equity, and inclusion (DEI) initiatives. According to a press release from the Maryland Attorney General’s office, the lawsuit, filed in the U.S. District Court for the District of Maryland, argues that these mandates impose unclear and potentially discriminatory conditions on federal contractors without proper public input or clear guidance.

The executive order at the center of the legal challenge directs federal agencies to incorporate new terms into contracts that prohibit what are termed “racially discriminatory DEI activities” in relation to federal contract work. The coalition contends that the federal agencies bypassed standard procedures, such as soliciting public comments, in their haste to implement President Trump’s executive order issued in March 2026. This lack of a transparent process, the attorneys general argue, has left contractors with no clear understanding of what is expected of them or how these new requirements differ from existing anti-discrimination laws. The potential penalties for non-compliance are severe, including contract termination, debarment from future federal contracts, and legal action under the False Claims Act.

The lawsuit further alleges that these vague and confusing contract terms could inadvertently increase costs for contractors and potentially stifle legitimate efforts to prevent, identify, and address discrimination. Maryland, along with the other coalition states, has existing federal contracts worth billions of dollars. Federal agencies began implementing these new contract terms in April 2026, with a directive to modify existing contracts by July 24, 2026. The federal government estimates that these changes could affect as many as 640,000 contracts and subcontracts nationwide, impacting over 34,000 unique vendors. State agencies in Maryland, including universities involved in scientific research and veterans’ medical treatment, are among those that perform significant work for the federal government under contract.

The coalition’s legal arguments center on violations of the Administrative Procedure Act. They assert that federal agencies failed to provide adequate notice to the public, did not accept public comments as required by federal procurement law, exceeded their legal authority, and did not offer sufficient explanation or justification for the new requirements. The lawsuit seeks a court order declaring the agencies’ actions unlawful and preventing them from enforcing these new contract terms. The attorneys general joining Maryland in this action represent California, Colorado, Connecticut, the District of Columbia, Hawaiʻi, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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