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flag Federal agencies are cracking down on workplace DEI programs, sparking legal challenges over their constitutionality and legality.

flag In early 2026, federal agencies are intensifying oversight of workplace DEI programs, with the EEOC, FTC, and DOJ pursuing investigations and novel legal theories, including False Claims Act liability for federal contractors. flag The Seventh Circuit heard arguments in *Chicago Women in Trades v. Trump*, questioning the constitutionality of a certification requirement tied to DEI compliance, citing lack of clear standards. flag Meanwhile, the Fourth Circuit ruled that two Trump-era executive orders on DEI survive constitutional challenges, but did not define lawful vs. unlawful DEI activities, leaving employers in legal uncertainty.

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