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Sunday, August 24, 2025

DOJ’s bid to deploy the False Claims Act in higher education may face headwinds - Nixon Peabody LLP

From the start [1], the second Trump administration has telegraphed a clear intent to eliminate diversity, equity, and inclusion programs and initiatives that the White House finds objectionable. To date, the administration has targeted colleges and universities, as well as other recipients of federal funding, grants, and tax benefits with an array of investigations and demands, all with the stated goal of incentivizing institutions to change admissions practices, eliminate diversity goals, and ensure compliance with directives governing the administration of federal research grants and funds.

The Department of Justice trumpets the False Claims Act as the latest tool in its higher education enforcement arsenal

Last week, however, marked the opening of a new and significant front in the administration’s higher education enforcement efforts, as the Department of Justice announced a new so-called “Civil Rights Fraud Initiative.” This new initiative will combine the resources of DOJ’s Civil Rights Division and the Fraud Section of the Civil Division to deploy the False Claims Act (FCA) as an enforcement tool against “any recipient of federal funds that knowingly violates federal civil rights laws,” with institutions that “allow anti-Semitism and promote divisive DEI policies” explicitly in the crosshairs. Presumably, this initiative will involve both internally-generated FCA cases brought directly by DOJ, and qui tam actions filed (initially under seal) by individual...



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