The civil rights fraud initiative will also coordinate with the Criminal Division, various federal agencies, state attorneys general and local law enforcement to ensure a comprehensive and aggressive approach with coordinated enforcement efforts.

On May 19, 2025, Deputy U.S. Attorney General Todd Blanche announced that the U.S. Department of Justice will use the False Claims Act (FCA) to enforce the administration’s policies concerning diversity, equity and inclusion (DEI) practices and antisemitism. The FCA is a powerful tool, and its invocation by the DOJ is a signal to federal-funding recipients that they will face increased scrutiny, and likely more aggressive enforcement actions, if they continue to engage in DEI practices that are or may be deemed unlawful by the administration.

Deputy U.S. Attorney General Blanche issued a memorandum announcing the formation of a DOJ “Civil Rights Fraud Initiative,” which, along with the Civil Division’s Fraud Section and the Civil Rights Division, will use the FCA to investigate and pursue claims against entities and organizations “who defraud the United States by taking its money while knowingly violating civil rights laws.”

The civil rights fraud initiative will also coordinate with the Criminal Division, various federal agencies, state attorneys general and local law enforcement to ensure a comprehensive and aggressive approach with coordinated enforcement efforts. The deputy attorney general also encouraged whistleblowers and private parties to bring qui tam actions, recognizing that the DOJ “alone cannot identify every instance of civil rights fraud.”

The Blanche memo and civil rights fraud initiative follow executive orders that have less explicitly, but no less clearly, indicated the administration’s intention to use the FCA to further these policy agendas, including specifically in higher education.

A January 21, 2025, executive order entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” made explicit reference to the FCA in its directive to funding agencies to include certifications of compliance and terms and conditions of materiality. That EO made plain the administration’s intention to attempt to impose institutionwide policy and practice obligations and prohibitions as a condition of receipt of any federal funding for any purpose and signaled aggressive use of investigations and litigation by the attorney general and agencies (including the Department of Education) to enforce such obligations. The Department of Education thereafter announced investigations of higher education institutions related to these “civil rights” issues.

The May 19 Blanche memo now broadly announces an intention to investigate and pursue alleged FCA violations broadly against all recipients of federal funds, but makes special mention of colleges and universities as a focus of the initiative. The Blanche memo invokes Students for Fair Admissions, Inc. v. President & Fellows of Harvard College, 600 U.S. 181 (2023) in announcing the initiative’s FCA focus on federal-funding recipients who knowingly engage in DEI programs or policies that the administration may view as unlawful. The Blanche memo also states that:

[A] university that accepts federal funds could violate the False Claims Act when it encourages antisemitism, refuses to protect Jewish students, allows men to intrude into women’s bathrooms, or requires women to compete against men in athletic competitions. Colleges and universities cannot accept federal funds while discriminating against their students.

The FCA presents significant risks for federal-funding recipients. The potential fines for violating the FCA include treble damages plus penalties. The government has broad authority to conduct investigations under the FCA, and such investigations alone can present significant burdens and costs. The FCA also incentivizes relators (aka whistleblowers) to raise alleged violations of the FCA, and the Blanche memo may be seen by potential relators as an invitation to bring forth such allegations.

The administration’s focus on DEI practices remains strong, and as a result, federal-funding recipients should assess their current policies and practices to evaluate risk and compliance. At a minimum, federal-funding recipients should consult with counsel experienced in government investigations and the FCA in any interactions with their funding agencies or the DOJ in these matters. Colleges and universities would also benefit from consulting with attorneys experienced with federal higher education regulations to assess and mitigate potential impacts on their participation in student aid and other Department of Education programs.

For More Information

If you have any questions about this Alert, please contact Daniel R. Walworth, Christopher H. Casey, Katherine D. Brodie, Sara Smith, any of the attorneys in our Education Industry Group, any of the attorneys in our Trial Practice Group or the attorney in the firm with whom you are regularly in contact.

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