By: Paul Goldberg – Senior Correspondent | LGBT Politics USA
SAN FRANCISCO, CA — (July 10, 2026) — A federal judge has temporarily blocked the Trump administration from enforcing new diversity, equity and inclusion (DEI) restrictions tied to billions of dollars in federal grant funding, marking another legal setback for the administration’s efforts to reshape federal spending policies.
The ruling, issued Thursday by U.S. District Judge William Orrick in California, grants a preliminary injunction preventing four federal agencies—the Departments of Justice, Homeland Security, Interior, and the Federal Emergency Management Agency (FEMA)—from imposing the challenged grant conditions on 11 municipalities across California and Oregon while the lawsuit proceeds.
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Judge Says Grant Conditions Exceed Congressional Authority
In his decision, Judge Orrick concluded that the administration’s anti-DEI funding requirements likely violate constitutional principles governing federal spending.
According to the ruling, Congress—not the executive branch—determines how federal grant programs are funded and what conditions recipients must satisfy. Orrick also found that several of the challenged requirements were either unrelated to the purpose of the grant programs or conflicted with congressional intent.
The judge noted that numerous federal grant programs specifically direct resources toward historically underserved communities, including initiatives addressing human trafficking, public safety, emergency preparedness, and disaster recovery.
In the opinion, Orrick wrote that the plaintiffs correctly argued that neither the Constitution nor existing federal law authorizes executive agencies to impose the disputed DEI-related conditions on congressionally approved grant programs.
California and Oregon Municipalities Filed the Challenge
The lawsuit was brought by several cities and counties that argued the new requirements could jeopardize critical public safety and emergency funding.
The plaintiffs include:
- San Diego County
- Los Angeles County
- Santa Barbara County
- City of Fresno
- City of Santa Clara
- Redwood City
- Santa Cruz
- Stockton
- Beaverton
- Corvallis
- Hillsboro
The disputed grants support a wide range of programs, including law enforcement, emergency management, disaster relief, anti-terrorism initiatives, immigration services, and wildfire response.
Latest Court Defeat for Trump Administration’s DEI Policy
The California ruling is the latest in a growing series of federal court decisions challenging the administration’s efforts to attach anti-DEI conditions to federal funding.
Last week, a federal judge in Seattle also issued a preliminary injunction blocking similar grant requirements involving funding distributed through the Departments of Transportation and Housing and Urban Development (HUD). That case was filed by Seattle, Cleveland, Columbia, Durham, Portland, and several local governments, arguing that the executive branch exceeded its legal authority by adding conditions not authorized by Congress.
The growing number of injunctions means the administration’s anti-DEI funding policies continue to face significant legal scrutiny as multiple lawsuits move through the federal court system.
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