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Wednesday, March 4, 2026

DOJ provides insights on False Claims Act investigations related to DEI and antidiscrimination - A&O Shearman

The U.S. Department of Justice (DOJ) leadership has provided insight into how DOJ is pursuing investigations related to unlawful diversity, equity, and inclusion (DEI) programs.

In comments made on February 19 2026 during the Federal Bar Association’s 2026 Qui Tam Conference and covered by several media outlets, Brenna Jenny, Deputy Assistant Attorney General Commercial Litigation Branch, suggested the Trump Administration’s efforts should not be viewed as combatting DEI programs per se, but instead as targeting discrimination which may or may not arise out of DEI programs. Jenny noted that not all DEI programs are unlawful and that the DOJ’s use of the False Claims Act (FCA) in this area focuses on investigating programs by federal contractors and potential grant recipients in which participation is “restricted on the basis of race or sex” such as executive training and mentoring programs.

Background – the 2025 executive order

On January 21, 2025, President Trump issued an executive order restricting federal agencies, contractors, and grant recipients from promoting “illegal” DEI policies and conditioned government funding on adhering to this restriction. See Executive Order 14173, found here.

However, the executive order lacked guidance on the factors that would render a DEI program “illegal,” resulting in many companies and universities that regularly work with the U.S. government or receive federal grants either scaling back components of their DEI programs or getting...



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