Michigan AG Challenges Trump Administration’s DEI Contractor Ban
Attorney General Dana Nessel leads 21-state coalition challenging Trump’s ban on DEI activities by federal contractors, citing procedural violations and unclear terms.

LANSING, MICHIGAN β Michigan Attorney General Dana Nessel joined 20 other state attorneys general Wednesday in filing a federal lawsuit challenging the Trump administration’s executive order that prohibits federal contractors from engaging in diversity, equity, and inclusion activities.
The lawsuit, filed in federal district court in Maryland, targets an executive order signed March 26 that defines banned DEI programs as “disparate treatment based on race or ethnicity in the recruitment, employment (e.g., hiring, promotions), contracting (e.g., vendor agreements), program participation, or allocation or deployment of an entity’s resources.”
Legal Challenge Cites Procedural Violations
The multistate coalition argues that “the prescribed contract term is unclear and does not provide sufficient explanation of what it prohibits.” According to the lawsuit, “neither the Executive Order nor agency actions implementing it have provided any useful explanation of whether or how the contract term imposes requirements different from existing provisions of law.”
The legal challenge also alleges that federal agencies implementing the executive order violated the Administrative Procedure Act by failing to provide public notice or accept public comments on the changes. The states further contend the executive order exceeds the legal authority of the implementing agencies.
Michigan AG Criticizes Implementation Process
“Unsurprisingly, the Trump administration is at it again β unlawfully sidestepping procedures to impose vague and confusing conditions on federal contracts,” Nessel said in a press release. “The federal government rushed this process without providing proper notice to the public.”
The executive order is part of the Trump administration’s campaign against diversity, equity, and inclusion initiatives across federal operations. The March directive specifically targets contractors working with the federal government, requiring them to avoid what the administration characterizes as racially discriminatory practices.
Broader Context of DEI Restrictions
The legal action comes amid the Trump administration’s efforts to eliminate DEI programs from federal contracting and operations. The executive order applies to entities seeking federal contracts, potentially affecting thousands of businesses and organizations that work with government agencies.
The lawsuit seeks to block enforcement of the executive order while challenging both its substance and the manner in which it was implemented. The case will now proceed through the federal court system, with the states requesting judicial review of the administration’s actions.
Michigan’s participation in the lawsuit reflects the state’s opposition to what officials characterize as federal overreach in contracting requirements. The case joins other legal challenges to Trump administration policies affecting state interests and federal contracting procedures.

