Donald Trump has been a party to discrimination cases in three distinct arenas: a 1973 federal housing discrimination lawsuit brought by the U.S. Department of Justice against him, his father, and their company; a 1991 casino discrimination penalty at Trump Plaza in Atlantic City; and, most recently, litigation challenging his second-term administration’s 2026 executive order restricting diversity, equity, and inclusion programs among federal contractors. The Trump discrimination lawsuits stretch across more than 50 years and involve both allegations made against him and, now, legal challenges to the discrimination rules his administration is imposing on others.
The 1973 Housing Discrimination Case
On October 15, 1973, the Justice Department’s Civil Rights Division filed suit against Fred C. Trump, Donald Trump, and Trump Management, Inc. in the U.S. District Court for the Eastern District of New York. Fred Trump was chairman; Donald, 27 at the time, was president. The complaint alleged a “pattern and practice of resistance” to the Fair Housing Act of 1968 across a rental portfolio of more than 14,000 units.1PBS. Trump FHA Complaint
Prosecutors said the company refused to rent to Black applicants, imposed different terms on them, lied about apartment availability, and made statements indicating racial preferences. The properties named ran across Brooklyn, Queens, Staten Island, and Norfolk, Virginia.2Civil Rights Litigation Clearinghouse. United States v. Fred C. Trump, Donald Trump, and Trump Management, Inc.3The Virginian-Pilot. Trump Rental Properties in Norfolk Were Part of 1970s Federal Discrimination Suit
What the Government Said It Found
Much of the evidence came from paired “testers” — Black and white applicants sent to inquire about the same apartments. White testers were offered units; Black testers at the same buildings were told nothing was available.2Civil Rights Litigation Clearinghouse. United States v. Fred C. Trump, Donald Trump, and Trump Management, Inc.
Employee testimony added detail. Thomas Miranda, a former building superintendent, testified that staff were told to clip a sheet marked with a large “C” — for “colored” — to applications from Black tenants. Stanley Leibowitz, a former rental agent, said Fred Trump told him to take those applications and “put it in a drawer and leave it there.” Asked how many Black tenants lived in Trump properties, Leibowitz said, “To the best of my knowledge, none.”4NBC News. Not Wanted: Black Applicants Rejected by Trump Housing Speak Out5U.S. Congress. House Government Operations Committee Document A former Brooklyn doorman later told the FBI a supervisor instructed him to quote Black applicants double the actual rent.6Politico. Trump FBI Files Discrimination Case
The 1975 Consent Decree
Rather than settle quickly, the Trumps hired Roy Cohn and filed a $100 million countersuit against the government. Judge Edward R. Neaher dismissed the countersuit as a waste of “time and paper.”7Politico. Donald Trump and Roy Cohn
On June 10, 1975, the parties signed a consent decree. The agreement said it was “in no way an admission” of any violation, and the complaint was dismissed with prejudice against Fred and Donald Trump personally.8Civil Rights Litigation Clearinghouse. Consent Decree, United States v. Fred C. Trump It also imposed concrete obligations on Trump Management:
- An injunction against discriminating in the rental or sale of any dwelling, including lying about availability.
- An order that Fred and Donald Trump personally “thoroughly acquaint themselves” with the Fair Housing Act.
- A requirement to advertise equal housing opportunities to minorities.
- Weekly reporting of all vacancies to the New York Urban League for two years, with the League given three days to present qualified applicants for every fifth vacancy in buildings where fewer than 10 percent of tenants were Black.2Civil Rights Litigation Clearinghouse. United States v. Fred C. Trump, Donald Trump, and Trump Management, Inc.
The court retained jurisdiction until June 10, 1977.
The 1978 Compliance Dispute
The decree didn’t end the matter. On March 6, 1978, the Justice Department filed a motion for supplemental relief in Brooklyn federal court, alleging that Trump Management was continuing to discriminate. The government said an “underlying pattern of discrimination continues to exist” and pointed to “racial steering” — permitting Black families to rent, but confining them to a small number of complexes.9The New York Times. Trump Charged With Rental Bias5U.S. Congress. House Government Operations Committee Document
The Trumps contested the allegations. The government could not accumulate enough evidence before the original decree expired, and the matter closed in the spring of 1982. By 1983, reports indicated 95 percent of tenants at two specific Trump properties were still exclusively white.10NBC News. Release of FBI Documents Resurrect Past Racial Controversies for Trump Housing
Trump has denied any discrimination. In The Art of the Deal, he wrote: “What we didn’t do was rent to welfare cases, white or black.”10NBC News. Release of FBI Documents Resurrect Past Racial Controversies for Trump Housing
The 1991 Trump Plaza Casino Fine
The next major finding came in Atlantic City. In 1991, the New Jersey Casino Control Commission fined Trump Plaza Hotel and Casino $200,000 after concluding that managers repeatedly reassigned Black and female dealers away from tables used by high-roller Robert Libutti, a gambler who used racial slurs and demanded white male dealers.11UPI. Trump Plaza Fined $200,000 for Discrimination
The commission voted 3-1 to approve the penalty, overruling an administrative law judge who had found no discrimination. Employee Newton Brown III testified that he had been reassigned at least five times when Libutti was present during 1990 alone.12Asbury Park Press. Trump Lambasted by Casino Regulators
Trump Plaza appealed. In October 1992, a New Jersey appellate panel upheld the fine, writing that “the transcript fairly reeks of Trump Plaza’s guilt” and noting that the casino’s witnesses were high-ranking executives while the state’s witnesses were current employees risking their jobs.13UPI. Trump Plaza Loses Appeal of Discrimination Penalty The state’s findings did not implicate Donald Trump personally in the reassignment decisions.
Related Allegations From Former Casino Executive John O’Donnell
John O’Donnell, a former president of Trump Plaza, published a 1991 book, Trumped!, in which he attributed racist remarks to Trump from a private 1988 lunch. O’Donnell wrote that Trump had said of a Black manager, “I think the guy is lazy. And it’s probably not his fault because laziness is a trait in blacks. It really is. I believe that.” He also attributed to Trump the line: “Black guys counting my money! I hate it. The only kind of people I want counting my money are short guys that wear yarmulkes every day.”14Reuters. Fact Check: Trump Had Been Accused of Racism by Contemporaries Prior to Presidential Campaign
In a 1999 Playboy interview, Trump said “the stuff O’Donnell wrote about me is probably true,” while calling O’Donnell a “fucking loser” who barely knew him.14Reuters. Fact Check: Trump Had Been Accused of Racism by Contemporaries Prior to Presidential Campaign Trump has since said he has “never used racist remarks.”15Politico. Donald Trump Says He’s Never Used a Racist Remark. I Know Different The O’Donnell claims were reported in a book, not litigated.
Lawsuits Over the 2026 Anti-DEI Executive Order
The current discrimination litigation involving Trump runs the other direction: his administration is defining what counts as unlawful discrimination, and plaintiffs are suing to stop it. In March 2026, Trump signed Executive Order No. 14398, barring federal contractors and subcontractors from engaging in “racially discriminatory DEI activities” and threatening contract termination, debarment, and Justice Department suits for noncompliance.16Government Executive. Contractors Sue to Block Trump’s Federal DEI Executive Order
The DOJ has already used the order. On April 10, 2026, it announced a $17.1 million False Claims Act settlement with IBM — the first case brought under the department’s “Civil Rights Fraud Initiative” — over practices such as a “diversity modifier” tied to bonuses, altered interview criteria, and demographic goals within business units. IBM denied the conduct but paid to end the matter. The settlement covered practices dating back to January 2019.17Government Executive. IBM Settles DEI $17.1M Civil Rights Fraud Initiative
The Contractor Coalition Suit
In April 2026, a coalition including the National Association of Minority Contractors and university faculty sued in U.S. District Court in Maryland, arguing that the order violates the First Amendment and due process by acting as a “gag rule” that forces minority-owned businesses to give up race-related advocacy to keep federal contract access. The plaintiffs sought a preliminary injunction.16Government Executive. Contractors Sue to Block Trump’s Federal DEI Executive Order
The 19-State Suit
On June 10, 2026, attorneys general from 19 states and Washington, D.C. filed Maryland v. Hegseth in the same court. Massachusetts Attorney General Andrea Joy Campbell led the coalition, which included California, Illinois, and New Jersey. The states argue the order violates the Administrative Procedure Act because agencies imposed the new contract terms without required public comment and without explaining what activities are actually prohibited.18Reuters. States Sue Trump Administration Over Anti-DEI Terms for Federal Contracts They also call the phrase “racially discriminatory DEI activities” unconstitutionally vague, and say the order threatens penalties across an estimated 640,000 federal contracts and subcontracts.19New Jersey Globe. N.J., 19 States Sue Over Executive Order Banning DEI From Federal Contractors Both lawsuits are pending.