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Saturday, June 7, 2025

The False Claims Act Enters the School Zone - Troutman Pepper Locke

On May 19, 2025, the U.S. Department of Justice (DOJ) announced the launch of a Civil Rights Fraud Initiative, which will use the False Claims Act (FCA) as a basis for investigating the diversity, equity, and inclusion (DEI) practices of recipients of federal funds, including colleges and universities who receive Title IV student financial aid and research grants. Calling out academic institutions specifically, the Civil Rights Fraud Initiative will invoke the FCA “against those who defraud the United States by taking its money while knowingly violating civil rights laws.”

The announcement of the new initiative comes just days after reports that the DOJ launched an FCA investigation against Harvard University based on whether its admission policies comply with the recent Supreme Court decision ending affirmative action. Our colleagues forecasted the use of the FCA as a weapon against DEI after President Donald Trump issued Executive Order 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” directing the federal government to take numerous specific actions to terminate all DEI and diversity, equity, inclusion, and accessibility (DEIA) initiatives. The initiative also was previewed in a memo issued by Attorney General Pam Bondi on February 5, titled “Ending Illegal DEI and DEIA Discrimination and Preferences,” which directed the DOJ’s Civil Rights Division to “investigate, eliminate, and penalize illegal DEI and DEIA preferences, mandates,...



Read Full Story: https://news.google.com/rss/articles/CBMiigFBVV95cUxQU2ZKb0YwMXg5NWdfRm82NjZI...