Judge stops new anti-DEI conditions for federal grants in California and Oregon

SAN FRANCISCO (CN) — A federal judge halted the Trump administration from imposing and enforcing “unlawful and unauthorized” grant conditions targeting federal funds allocated for public safety, public health and environmental programs.

U.S. District Judge William Orrick indicated inJune that he would grant a preliminary injunction blocking the Department of Homeland Security, the Federal Emergency Management Agency, the Department of the Interior and the Department of Justice from enforcing the challenged grant conditions against a coalition of California and Oregon cities. He issued the order Thursday evening.

“What defendants seek to do likely violates the Constitution and the Administrative Procedures Act,” the Barack Obama appointee wrote. “The result of their imposition of the challenged conditions would irreparably injure plaintiffs and their ability to provide critical services, as well as would threaten public safety.”

The plaintiffs, including the California cities of Fresno, Santa Clara, Redwood City, Santa Cruz and Stockton; San Diego, Los Angeles and Santa Barbara counties; and the Oregon cities of Beaverton, Corvallis and Hillsboro, said they have received, applied for or intended to apply for funding from the departments but objected to a series of new conditions.

The counties and cities accused the agencies of unlawfully conditioning congressionally appropriated funds on compliance with President Donald Trump’s anti-diversity, equity and inclusion policies, cooperation with federal immigration enforcement and adherence to executive orders related to grants.

Funding for terrorism preparedness, hazard mitigation, flood assistance, forensic science programs, anti-human trafficking initiatives and crime victim services could be defunded under the new conditions.

Orrick noted the interests of the plaintiffs outweigh the federal government’s need to impose new grant conditions.

“So does the general public, which is interested in seeing its communities receive funding for critical infrastructure and public safety initiatives — funding that is paid for by their federal tax dollars,” he wrote. “It is also interested in seeing that regulations passed by Congress are properly implemented; should relief not be granted, many grant programs will be contradicted or impermissibly overridden by the president’s executive orders. These interests also strongly weigh in favor of granting a preliminary injunction.”

In August 2025, Fresno and other entities sued the Department of Housing and Urban Development, Health and Human Services, Transportation and the Environmental Protection Agency over grant conditions requiring compliance with Trump’s policy preferences related to DEI, “gender ideology,” “elective abortion” and federal immigration enforcement.

Chief U.S. District Judge Richard Seeborg, a Barack Obama appointee, later granted the plaintiffs’ request for a preliminary injunction, and in August 2026, extended the injunction to cover additional plaintiff localities.

Additionally, in November, Orrick blocked the Department of Homeland Security from withholding disaster preparedness grants from local governments that refuse to adhere to federal anti-DEI policies and vague conditions requiring compliance with unspecified grant-related executive orders.

Attorneys representing the cities and federal agencies did not immediately respond to requests for comment.