On July 29, 2025, the Department of Justice ("DOJ") issued guidance outlining what it considers "unlawful discrimination" by recipients of federal funds.
On July 29, 2025, the Department of Justice ("DOJ") issued guidance outlining what it considers "unlawful discrimination" by recipients of federal funds. In the guidance, Attorney General Bondi clarifies the application of federal antidiscrimination laws to programs or initiatives that may involve discriminatory practices, including those labeled as Diversity, Equity, and Inclusion ("DEI") programs. Entities that receive federal funds—including educational institutions, state and local governments, and public and private employers—must ensure that their programs and activities comply with federal law and do not discriminate based on protected characteristics, such as race, color, national origin, sex, religion—no matter the program's "labels, objectives, or intentions." Per the guidance, knowingly funding contractors, grantees, or other third parties who engage in discriminatory policies and practices could result in revocation of federal funds. The below summarizes DOJ's guidance within the memo as well as collateral False Claims Act risks associated with engaging in unlawful discrimination.
DOJ's Seven Key Takeaways Regarding Legal Risks and Non-Binding Best Practices
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