New England Biz Law Update
A federal judge in California has temporarily blocked the enforcement of key provisions in three executive orders issued by President Donald J. Trump that sought to restrict federal funding for diversity, equity, and inclusion (DEI) programs and initiatives supporting transgender individuals.
U.S. District Court Judge Jon Tigar granted a preliminary injunction in a case brought by nine nonprofit organizations that provide healthcare and social services to LGBTQ communities.
National plaintiffs group
The plaintiffs include the San Francisco AIDS Foundation; the Los Angeles LGBT Center; the New York LGBT Center; the Bradbury-Sullivan LGBT Community Center in Allentown, Pennsylvania; Baltimore Safe Haven in Maryland; FORGE, a trans and nonbinary trauma recovery group based in Milwaukee, Wisconsin; Prisma, a healthcare organization in Phoenix, Arizona; and others.
These organizations collectively receive tens of millions of dollars in federal funding, and as of February 1, 2025, several had already received grant termination notices citing the executive orders. The plaintiffs argued that the challenged executive orders are unconstitutional and jeopardize their ability to deliver essential services.
Court opinion
The court agreed in part, blocking three provisions that directed federal agencies to cut off funding for equity-related efforts and any programs deemed to promote “gender ideology.”
In a 52-page ruling, Tigar wrote that these funding restrictions “reflect an effort to censor constitutionally protected speech and services promoting DEI and recognizing the existence of transgender individuals.”
He continued: “While the Executive requires some degree of freedom to implement its political agenda, it is still bound by the Constitution. And even in the context of federal subsidies, it cannot weaponize Congressionally appropriated funds to single out protected communities for disfavored treatment or suppress ideas that it does not like or has deemed dangerous.”
The judge found that the plaintiffs had shown a likelihood of success on several constitutional claims, including violations of the First and Fifth Amendments, as well as the separation of powers doctrine. He noted that the affected organizations faced an “imminent loss of federal funding critical to their ability to provide lifesaving healthcare and support services.”
At the same time, the court declined to block a separate provision requiring grant recipients to certify they are not operating DEI programs that violate federal antidiscrimination laws. Tigar said that the plaintiffs had not yet demonstrated that this requirement exceeds existing legal obligations.
Although the injunction is limited to the plaintiff organizations, the court’s reasoning could serve as a blueprint for other affected groups seeking to challenge the executive orders.
