On July 30, 2025, the Department of Justice (“DOJ”) issued guidance to recipients of federal funds that reiterates the Trump Administration’s view that federal antidiscrimination laws apply to Diversity, Equity, and Inclusion (“DEI”) programs and initiatives, even in cases where employers have re-labeled the programs to avoid scrutiny. The guidance explains that programs that use “ostensibly neutral criteria” as “unlawful proxies” or “substitutes for explicit consideration of race, sex or other protected characteristics” violate federal law. It also gives a non-exhaustive list of programs and policies that are considered illegal, and offers non-binding best practices to help entities that receive federal funds avoid the risk of legal violations and the revocation of federal funding. The guidance also affirms the federal government’s ongoing scrutiny of this area and the potential for enforcement actions.
Although not legally binding, the guidance constitutes the most comprehensive articulation of the Trump Administration’s views on programs and policies that constitutes “unlawful” DEI. The Administration first placed this issue in the spotlight on January 21, 2025, when President Trump signed Executive Order 14173, entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity (“EO 14173”). As we explain in our February 13, 2025 Insight entitled “DEI Executive Order Implies Threat of FCA Litigation,” this new EO 14173 revoked prior Executive Order 11246 (“EO...
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