That school receives funding directly or indirectly from federal programs under the executive branch, including the Department of Education
DEI support disqualifies institutions from receiving Federal funds
Supporting DEI and trans rights while receiving Federal funds counts as defrauding the US government
DOJ takes up the case
While EOs are not laws, they have the potential to do massive amounts of damage because most of the government runs on agencies under control of the Executive. And while universities and public schools are not federal, they receive shit tons of funds through grants, contracts, and subsidies from a wide array of federal agencies (see: academic panic at the NSF and NIH halting grant review and funding as a result of Trump’s recent orders).