The U.S. Department of Justice (DOJ) announced the creation of the Civil Rights Fraud Initiative in a Memorandum issued on May 19, 2025. According to the Memorandum, the Initiative is an enforcement effort that will use the federal False Claims Act (FCA), 31 U.S.C. § 3729 et seq., to pursue recipients of federal funding – including federal contractors and grant recipients like colleges and research institutions – who allegedly falsely certify their compliance with federal civil rights laws. While the FCA has long been used to police those who falsely certify compliance with various laws, the repeated emphasis on DEI issues and explicit announcements that this is a priority for DOJ suggests these developments should be closely monitored.
The False Claims Act
The FCA is a potent tool used by the government to recover funds paid out as a result of fraud. The statute imposes civil liability on any person who knowingly presents a false claim for payment of government funds or makes a false statement that is material to a claim for payment of government funds. Because FCA violations can result in treble damages and significant penalties for each false claim, it is aptly referenced in the May 19 Memorandum as the Justice Department’s “favorite weapon against fraud, waste, and abuse.”
The FCA also enables whistleblowers (or “relators”) to file qui tam actions on behalf of the government and receive a share of any money recovered in the litigation. Under the qui tam provisions, a...
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