On January 30, 2026, the U.S. Court of Appeals for the Seventh Circuit heard oral argument in Chicago Women in Trades v. Trump, No. 25-2144, concerning whether the Trump administration can require federal contractors and grantees to certify that they do not operate diversity, equity, and inclusion (DEI) programs that violate federal antidiscrimination laws. The judges pressed both sides but reserved their sharpest criticism for the government, which has not defined what separates lawful DEI from unlawful DEI in briefing, argument, or otherwise.
For employers seeking clarity on federal policy and enforcement, the oral argument suggests that definitive answers as to what constitutes “unlawful DEI” remain elusive and may not be forthcoming, instead being discernible only from enforcement activity and the federal government’s interpretations.