New DOJ initiative will use False Claims Act to investigate DEI policies

The Department of Justice (DOJ) has announced its plan to employ the False Claims Act as part of the Trump Administration’s efforts to eliminate illegal diversity, equity, and inclusion (DEI) and diversity, equity, inclusion, and accessibility (DEIA) policies.

While this DOJ initiative is primarily directed at universities, its scope could extend to any government contractor, grant recipient, or entity that otherwise receives federal funding.

The Civil Rights Fraud Initiative

On May 19, 2025, Deputy Attorney General Todd Blanche issued a memorandum stating that DOJ intends to launch a “Civil Rights Fraud Initiative” to “utilize the False Claims Act to investigate and, as appropriate, pursue claims against any recipient of federal funds that knowingly violates civil rights laws.” DOJ’s Civil Fraud Section and Civil Rights Section will co-lead the sweeping effort, using additional resources from each of the 93 United States Attorney’s Offices throughout the country.

The memorandum follows the Trump Administration’s Executive Order (EO) requiring every federal government contract and grant to include certifications that the recipient’s compliance with federal antidiscrimination laws is material to the government payment decisions under the False Claims Act, and that the recipient “does not operate any programs promoting DEI that violate” federal antidiscrimination laws.

The announcement of the Civil Rights Fraud Initiative indicates that DOJ is furthering its intent to use the False Claims Act to enforce compliance with the EO.

The False Claims Act

The False Claims Act is a civil fraud statute that prohibits, among other things, submitting, or causing to be submitted, false claims to the federal government. Any person who knowingly submits, or causes to submit, false claims for payment to the government may be liable for three times the government’s damages plus a sizeable penalty for each false claim. Historically, the False Claims Act has been used to combat fraud in government programs, particularly in the healthcare and government contracts space. It was first used in the Civil War to address fraud by military contractors.

The memorandum’s scope

The memorandum highlights higher education institutions as a focal point for enforcement of federal civil rights laws under this False Claims Act theory of liability, stating that such violations occur when universities accept federal funds and discriminate against students by, for example, “encourag[ing] antisemitism, refus[ing] to protect Jewish students, allow[ing] men to intrude into women’s bathrooms, or requir[ing] women to compete against men in athletic competitions.”

This follows other recent federal government initiatives that have affected universities, including a DOJ announcement of investigations into admissions policies at several prominent universities and a United States Department of Health and Human Services announcement on social media that it was terminating $60 million in federal grants to Harvard University.

This new DOJ initiative, however, is not limited to educational institutions. The memorandum states that the False Claims Act “is implicated whenever federal-funding recipients or contractors certify compliance with civil rights laws while engaging in racist preferences, mandates, policies, programs, and activities, including through diversity, equity, and inclusion (DEI) programs that assign benefits or burdens on race, ethnicity, or national origin.”

Significantly, DOJ calls for whistleblowers to act by “strongly encourag[ing]” private plaintiffs (also called qui tam relators) with knowledge of alleged violations to file lawsuits of their own under the False Claims Act, which allows private parties to bring lawsuits to vindicate the government’s rights and receive a percentage of any monetary recovery.

This initiative could also lead to federal criminal investigations, as the memorandum calls for collaboration with DOJ’s Criminal Division, which recently issued policy guidance identifying federal program and procurement fraud among its highest white collar crime enforcement priorities. In addition to federal investigation/enforcement risks and private actions, certain state attorneys general could also seek to leverage state false claims and consumer protection laws to target DEI/DEIA programs. Further, key congressional committees could highlight details and potentially target entities to reiterate the overarching policy message.

Key takeaways

As the scope of this DOJ initiative is likely to reach government contractors, grant recipients, and other entities receiving government funding, companies may consider the following actions:

• Conducting a risk assessment: The memorandum indicates DOJ’s intent to probe a broad array of potential targets, stating that “many corporations and schools continue to adhere to racist policies and preferences—albeit camouflaged with cosmetic changes.” Consider conducting a systematic review and assessment of all internal and external DEI materials, policies, and programs to identify and address any areas of potential risk or noncompliance with federal civil rights laws.


• Strengthening whistleblower procedures: With DOJ’s call for whistleblower actions, consider reviewing and enhancing internal whistleblowing policies to ensure that employees are adequately informed about how to internally report suspected policy violations. This can allow for thorough and appropriate investigation and remediation.


• Preparing for investigations: Prepare to take appropriate steps in the event of an investigation, including by developing and implementing protocols for responding to a government inquiry and crafting effective government affairs and communications strategies.


• Reviewing contract modifications and certification requests: The initial EO included a certification requirement. Agencies have presented the certification request to contractors and grant recipients in various ways, including through a self-standing certification or as part of a contract modification. Companies are encouraged to carefully review any such requests to ensure accurate certifications.


• Reviewing new solicitations: Review any solicitations and proposals for new federally funded work to ensure that representations regarding DEI compliance are accurate and complete.

If you have any questions about the implications of the DOJ initiative, please contact the authors, your DLA Piper relationship attorney, or any member of DLA Piper’s White Collar, Government Contracts, or Government Affairs and Public Policy practices.