AG Davenport joins lawsuit challenging Trump administration’s federal contractor requirements
TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport has joined a coalition of 20 attorneys general in a lawsuit challenging new federal contracting requirements imposed by the Trump administration, arguing the rules are vague, unlawful and could increase costs for state governments and contractors.
The lawsuit, filed in the U.S. District Court for the District of Maryland, challenges the implementation of Executive Order 14398, which directs federal agencies to add new provisions to federal contracts prohibiting contractors from engaging in unspecified diversity, equity and inclusion, or DEI, activities.
According to the attorneys general, the new contract terms were implemented without following required federal procedures and fail to clearly define what activities are prohibited.
“Once again, the Trump Administration is making it more difficult to do business with the State and to efficiently deliver government services,” said Attorney General Davenport. “If left unchecked, this latest demand will result in the squandering of limited state resources and drive up costs, all in service of the Administration’s ideological war on diversity.”
The coalition is seeking a court order declaring the agencies’ actions unlawful and preventing the federal government from enforcing the new contract provisions.
The executive order was issued March 26 and federal agencies began incorporating the new requirements into contracts in April. Agencies have been directed to modify existing contracts by July 24.
According to the lawsuit, contractors that fail to comply with the new requirements could face penalties including contract termination, exclusion from future federal contracting opportunities and potential liability under the False Claims Act.
The attorneys general argue that federal agencies violated the Administrative Procedure Act by failing to provide public notice and an opportunity for comment before implementing the changes. They also contend the agencies exceeded their legal authority and failed to adequately explain or justify the new requirements.
The federal government has estimated the order could affect as many as 640,000 contracts and subcontracts nationwide, including more than 160,000 contracts involving more than 34,000 vendors.
New Jersey and its agencies maintain federal contracts worth billions of dollars, according to the lawsuit.
Joining Davenport in the lawsuit are the attorneys general of California, Colorado, Connecticut, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin.
