The Daily Fuckup

Nineteen states and the District of Columbia filed suit on June 10 in federal court in Maryland, seeking to block the Trump administration from enforcing new contract language tied to President Trump’s March 26 executive order on federal contractors and DEI. The plaintiffs say the government moved ahead without giving contractors a workable explanation of what the clause requires or how agencies are supposed to apply it. ([oag.ca.gov](https://oag.ca.gov/system/files/attachments/press-docs/001%202026-06-10%20Complaint.pdf))

The complaint challenges an order that directs agencies to insert a certification into covered contracts and subcontracts barring what the White House describes as “racially discriminatory DEI activities.” It also says agencies may cancel or suspend awards, pursue debarment, and treat the certification as material to payment decisions under the False Claims Act. ([whitehouse.gov](https://www.whitehouse.gov/presidential-actions/2026/03/addressing-dei-discrimination-by-federal-contractors/))

According to the complaint, agencies began rolling out the clause in April and were instructed to extend it to existing contracts by July 24, 2026. The states say that process skipped the notice-and-comment requirements they say should have applied before the government changed the terms that contractors must accept. The filing also says the administration estimated the policy could affect as many as 640,000 contracts and subcontracts, involving more than 34,000 vendors. ([oag.ca.gov](https://oag.ca.gov/system/files/attachments/press-docs/001%202026-06-10%20Complaint.pdf))

The lawsuit argues the administration acted beyond its authority, violated the Administrative Procedure Act, and failed to distinguish the new clause from longstanding anti-discrimination rules already built into federal contracting. The plaintiffs are asking the court to stop the agencies from enforcing the new requirements while the case proceeds. ([oag.ca.gov](https://oag.ca.gov/system/files/attachments/press-docs/001%202026-06-10%20Complaint.pdf))