On May 19, 2025, Deputy Attorney General Todd Blanche announced the Department of Justice’s launch of a sweeping Civil Rights Fraud Initiative designed to hold federal contractors, grant recipients, and other federally funded entities accountable under the False Claims Act (FCA) for misrepresenting compliance with civil rights laws.
This initiative—led jointly by DOJ’s Civil Rights Division and Civil Division’s Fraud Section—represents a significant shift in civil rights enforcement strategy, applying the FCA’s powerful remedies to civil rights violations that previously may have resulted only in administrative or reputational consequences. According to the DOJ, entities that “claim to comply with federal civil rights laws but in practice discriminate or violate those laws” will now face investigation and potential civil prosecution under the FCA.
Traditionally, the False Claims Act has been used to combat fraud involving misuse of federal funds—typically in billing, procurement, or grant administration. The Civil Rights Fraud Initiative pushes this boundary, using false certifications of civil rights compliance as the hook for FCA liability.
According to DAG Blanche, the initiative targets entities that “exploit civil rights certifications to secure federal funds while tolerating discrimination, antisemitism, or unlawful exclusionary practices.” In particular, DOJ will focus on institutions that:
The authority has also cautioned all beauty clinics, wellness centers, and service providers in India using CoolSculpting machines to strictly comply with these norms. The Central Consumer Protect...