The Daily Fuckup

California Attorney General Rob Bonta led a coalition of 20 attorneys general on June 10 in suing the Trump administration over new terms added to federal contracts in the name of blocking “diversity, equity and inclusion” activity. The case was filed in federal court in Maryland and targets the agencies carrying out the March 26 executive order that told them to insert the new clause into covered contracts, subcontracts and lower-tier subcontracts. ([oag.ca.gov](https://oag.ca.gov/news/press-releases/attorney-general-bonta-sues-trump-administration-over-unlawful-confusing-new))

The lawsuit says the agencies moved too fast and too vaguely. According to the complaint and California’s announcement, federal agencies began adding the terms in April and were directed to revise existing contracts by July 24. The coalition argues the administration did not give the public a proper chance to comment, did not adequately explain how the clause would work in practice and did not clearly show how the new terms differ from existing anti-discrimination law. ([oag.ca.gov](https://oag.ca.gov/news/press-releases/attorney-general-bonta-sues-trump-administration-over-unlawful-confusing-new))

The executive order defines “racially discriminatory DEI activities” as disparate treatment based on race or ethnicity in hiring, promotion, contracting, program participation or resource allocation. It also says noncompliance can lead to cancellation, termination, suspension or debarment from future federal work, and it directs the attorney general to consider False Claims Act cases. The order further tells the Federal Acquisition Regulatory Council to amend procurement rules so the clause becomes part of federal contracting language. ([whitehouse.gov](https://www.whitehouse.gov/presidential-actions/2026/03/addressing-dei-discrimination-by-federal-contractors/))

California said the federal government estimates the order could reach as many as 640,000 contracts and subcontracts nationwide, including more than 160,000 contracts with over 34,000 vendors. The state’s complaint says that kind of reach makes the lack of clear standards more than a paperwork problem: contractors, universities, nonprofits and other recipients of federal money may be forced to guess what counts as prohibited conduct or pull back lawful programs to avoid scrutiny. ([oag.ca.gov](https://oag.ca.gov/news/press-releases/attorney-general-bonta-sues-trump-administration-over-unlawful-confusing-new))

The coalition is asking the court to block enforcement of the contract terms. Its legal theory is straightforward: the agencies exceeded their authority, ignored required procedures and imposed a major policy change without giving regulated parties a workable rule to follow. Whether the court agrees or not, the case turns a culture-war directive into a procurement fight over who gets to write the rules for federal money. ([oag.ca.gov](https://oag.ca.gov/news/press-releases/attorney-general-bonta-sues-trump-administration-over-unlawful-confusing-new))