Rainbow Labs
AmeriCorps DEI Lawsuit
We would restore $165,000 back into our nonprofit's funds which is 13% of our annual budget.
Posted March 5, 2026
Background & Context
We had a three year AmeriCorps Volunteer Generation Fund from September 2023 to October 2026. The Trump Administration cancelled our grant in April of 2025 (in the middle of our year 2 grant.) We jumped on a case with Democracy Forward and 12 other AmeriCorps grantees to get our funds back. We reapplied for Year 3 and were not granted funds on the basis that we did not comply with their updated DEI policies which required us to comply with all of Trump's EOs. All of those are in conflict with our work with LGBTQ+ youth and adults. They did not offer us an extension on our year 2 funds either. We have written confirmation from their lawyers (AmeriCorps) their reasons and Democracy Forward has found several other cases (listed early) we can reference back to.
Immediate Problem
We need to jump on a case immediately as our year 3 funds should have started back in October of 2025. Not only do we need our year 3 funds but we need an extension on our grant contract to spend all the funds down in time. Our current contracting period is October - September each year.
Work & Deliverables
We need support in how to move forward with our case. Our first assumption is to join one of the existing many DEI cases such as:
San Francisco Unified Sch. Dist. v. AmeriCorps, No. 3:25-cv-02425 (N.D. Cal): Plaintiffs challenged AmeriCorps’ imposition of grant conditions in its February 13, 2025 “Executive Order Compliance Instructions,” which required certain grant recipients to certify that their programs do not include any activities that promote DEI activities. I believe Rainbow Labs might have received this email. On June 18, 2025, Judge Chen granted a preliminary injunction blocking this requirement on the grounds that it changed the terms of an already approved grant and conflicted with Congress’s state purpose for the funds.
San Francisco A.I.D.S. Foundation v. Trump, No. 4:25-cv-01824 (N.D. Cal): Plaintiffs challenged the implementation and enforcement of the three “DEI EOs” (14168, 14151, and 14173) - particularly, federal rules tying grant funding to compliance with the DEI EOs. On June 9, 2025, Judge Tigar partially granted a preliminary injunction, blocking enforcement of the orders and holding that the government cannot force recipients to halt DEI programs or deny the existence of transgender people in order to receive grant funds. Defendants appealed to the 9th Circuit, with oral argument scheduled for February 2026.
Chicago Women in Trades v. Trump, No. 1:25-cv-2005 (N.D. Ill.): Though not an AmeriCorps case, the Northern District of Illinois addressed the anti-DEI executive orders in the context of federal grants and contracts. Plaintiffs challenged Executive Order provisions that required organizations to terminate DEI programs or certify they did not operate any DEI-related activities. On April 15, Judge Kennelly granted a preliminary injunction blocking enforcement of the certification and termination provisions.
Preparation Phase
- Introductory call with supervising attorney
Collaboration Phase
- Get to know client and facts of client’s case
- Prepare petition and supporting documents
- File petition
- Appear by telephone at scheduling hearing
- Appear by telephone at merits hearing
Wrap Up
- Explain outcome and further options to client
Rainbow Labs
Rainbow Labs is a Los Angeles–based nonprofit organization dedicated to empowering LGBTQ+ youth through mentorship, leadership development, and community-based programming. Founded on the belief that every young person deserves to feel seen, valued, and supported, Rainbow Labs creates affirming spaces where LGBTQ+ youth can build confidence, explore their identities, and develop the skills needed to thrive. Our mission is to ignite queer joy and build pathways to opportunity by connecting LGBTQ+ youth with trained adult mentors and transformative programs that center identity, belonging, and future readiness. We believe mentorship changes lives — especially for LGBTQ+ youth who often face higher rates of isolation, bullying, mental health challenges, and limited access to affirming adult role models. Rainbow Labs operates a series of structured “Labs” — immersive, project-based programs that blend mentorship with hands-on learning. These include: -Storytelling Lab – Empowering youth to share their lived experiences through visual arts, digital media, and creative expression. -STEM Accelerator Lab (Pathhacking) – A queer-inclusive STEM education program exposing youth to science, technology, engineering, and math while highlighting LGBTQ+ contributions to these fields. -Leadership Lab (Youth Council) – A paid leadership development program where youth engage in civic engagement, public speaking, advocacy, and professional development. -Sports & Wellness Lab – Promoting physical and mental wellness through team-based activities and mentorship. Across all programs, youth are matched with vetted and trained LGBTQ+ and ally mentors who serve as consistent, trusted adults. Our mentors provide guidance, encouragement, and access to expanded networks — helping young people envision futures that are not just possible, but powerful. Rainbow Labs primarily serves LGBTQ+ youth from historically underserved communities across Los Angeles County. Through school-based partnerships and community collaborations, we remove barriers to participation by offering programming at no cost to youth and families. At its core, Rainbow Labs exists to ensure that LGBTQ+ youth are not only supported — but celebrated. By fostering connection, confidence, and opportunity, we are building a generation of young leaders who will shape a more inclusive and equitable future.
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Rainbow Labs
Rainbow Labs is a Los Angeles–based nonprofit organization dedicated to empowering LGBTQ+ youth through mentorship, leadership development, and community-based programming. Founded on the belief that every young person deserves to feel seen, valued, and supported, Rainbow Labs creates affirming spaces where LGBTQ+ youth can build confidence, explore their identities, and develop the skills needed to thrive. Our mission is to ignite queer joy and build pathways to opportunity by connecting LGBTQ+ youth with trained adult mentors and transformative programs that center identity, belonging, and future readiness. We believe mentorship changes lives — especially for LGBTQ+ youth who often face higher rates of isolation, bullying, mental health challenges, and limited access to affirming adult role models. Rainbow Labs operates a series of structured “Labs” — immersive, project-based programs that blend mentorship with hands-on learning. These include: -Storytelling Lab – Empowering youth to share their lived experiences through visual arts, digital media, and creative expression. -STEM Accelerator Lab (Pathhacking) – A queer-inclusive STEM education program exposing youth to science, technology, engineering, and math while highlighting LGBTQ+ contributions to these fields. -Leadership Lab (Youth Council) – A paid leadership development program where youth engage in civic engagement, public speaking, advocacy, and professional development. -Sports & Wellness Lab – Promoting physical and mental wellness through team-based activities and mentorship. Across all programs, youth are matched with vetted and trained LGBTQ+ and ally mentors who serve as consistent, trusted adults. Our mentors provide guidance, encouragement, and access to expanded networks — helping young people envision futures that are not just possible, but powerful. Rainbow Labs primarily serves LGBTQ+ youth from historically underserved communities across Los Angeles County. Through school-based partnerships and community collaborations, we remove barriers to participation by offering programming at no cost to youth and families. At its core, Rainbow Labs exists to ensure that LGBTQ+ youth are not only supported — but celebrated. By fostering connection, confidence, and opportunity, we are building a generation of young leaders who will shape a more inclusive and equitable future.