By Karina Tsui and Andy Rose, CNN

(CNN) — American universities are facing another threat from the Trump administration, which intends to use a civil anti-fraud law to withdraw federal funding from colleges that promote diversity and inclusion policies, the Department of Justice announced Monday.

The False Claims Act will be enforced “when a federal contractor or recipient of federal funds knowingly violates civil rights laws,” Deputy Attorney General Todd Blanche says in a memo.

Such violations could include allowing antisemitism on campus or letting transgender women compete in sports or use restrooms corresponding with their gender identity, Blanche writes in the two-page memo. Institutions also cannot employ DEI programs “that assign benefits or burdens on race, ethnicity, or national origin,” he writes.

The Department of Justice will broadly seek fines and damages in cases where violations are found and also will consider criminal enforcement for certain breaches, the memo said. The False Claims Act dates to the Civil War and allows the government to recover funds up to three times the damages it incurs, in addition to penalties, according to the DOJ.

The law also allows private citizens to file suit claiming the government was defrauded and to keep a portion of any money the federal government recovers, the memo notes, adding: “The Department strongly encourages these lawsuits.”

The Justice Department’s announcement is part of President Donald Trump’s broader...

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