On May 19, 2025, the U.S. Deputy Attorney General issued a memorandum announcing a new Civil Rights Fraud Initiative. This initiative aims to enforce the False Claims Act against entities receiving federal funds who violate civil rights laws, particularly around Diversity, Equity, and Inclusion (DEI) programmes.
Key Points
- A new DOJ team will target FCA enforcement against federal contractors and universities violating civil rights laws.
- DEI programs permitting racial preferences or supporting antisemitism could face investigations.
- Private citizens are encouraged to report suspected violations via qui tam whistleblower suits for potential financial rewards.
- The initiative follows executive orders and legal measures from the Trump administration aimed at dismantling affirmative action.
- FCA violations could lead to significant financial penalties and reputational damage.
- Risk audits of DEI policies are recommended to mitigate potential legal issues.
Why should I read this?
If you’re involved with federal funding or manage DEI initiatives, this article is a must-read! The new DOJ initiative could turn your compliance efforts upside down. Understanding these changes can save you from hefty penalties and ensure you stay on the right side of the law. We’ve distilled all the complexities for you, so you won’t be caught off guard.
