New Jersey Joins Lawsuit Against Trump’s Federal Contractor DEI Ban

New Jersey has joined a coalition of 20 states in suing the Trump administration over its contractor policies they say are vague and depart from established antidiscrimination law. 

The Trump administration froze funding last year for the New York and New Jersey Gateway Tunnel project, citing “unconstitutional DEI practices.” This delay affected one of the nation’s most critical infrastructure projects: a new tunnel that would replace aging tubes damaged during Hurricane Sandy and carry roughly 200,000 passengers daily.

“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,” said Attorney General Jennifer Davenport of the lawsuit.

The lawsuit challenges President Donald Trump’s Executive Order 14398, which bans “diversity, equity and inclusion” practices in federal contracting, referring to them as “racially discriminatory.”

“DEI activities also create unnecessary costs by reducing the pool of available labor by artificially limiting companies to hiring or promoting certain individuals, suppliers, or intermediaries based on their race or ethnicity,” the executive order said.

The coalition argues the order’s requirements are too vague to comply with and that federal agencies bypassed required public comment periods, leaving contractors without clear guidance — while still facing penalties including contract cancellation.

According to the press release, this executive order could affect around 640,000 contracts and subcontracts around the country. The same anti-DEI funding pressure has also delayed other transportation projects, such as New York’s Second Avenue subway extension.

Other states joining the lawsuit are California, Colorado, Connecticut, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington and Wisconsin.