The Department of Justice (DOJ) is rapidly expanding the scope of False Claims Act (FCA) enforcement, and contractors with federal funding are squarely in the crosshairs.

Deputy Attorney General Todd Blanche issued a memo on May 19, 2025, launching the Civil Rights Fraud Initiative, directing DOJ’s Civil Rights Divisions to leverage the FCA against companies that allegedly violate civil rights laws while receiving federal funds.

The initiative focuses on false certifications of compliance with anti-discrimination requirements under Titles VI and IX, including alleging missteps in DEI programs and civil rights training. While framed as a civil rights measure, the memo signals a wider shift toward aggressive FCA enforcement through non-traditional lenses.

What’s Changing?

Federal contractors are now facing scrutiny not just for billing errors and procurement fraud — but for how they certify compliance with civil rights, cybersecurity and other regulatory obligations. DOJ’s recent actions suggest a few clear trends:

• Certifications are becoming liabilities. Contractors that attest to compliance with civil rights laws, Build America Buy America Act requirements, cybersecurity protocols or Small Business Administration (SBA) qualifications are at risk if those representations are incomplete or inaccurate.
• Parallel civil-criminal investigations are on the rise. The DOJ is coordinating between civil fraud units and criminal prosecutors, especially where whistleblowers or...

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