DEI Enforcement Response Team

In 2025, under the current administration, efforts intensified to eliminate unlawful private-sector diversity, equity, and inclusion (DEI) policies. This began with an Executive Order (EO) issued early in the year, followed by a memo from Attorney General Pam Bondi that outlined the role of federal agencies in penalizing, including through criminal sanctions, unlawful discrimination tied to DEI initiatives. These efforts were further reinforced in a May 19, 2025 memorandum from Deputy Attorney General Todd Blanche that announced the creation of the "Civil Rights Fraud Initiative," which aims to use the False Claims Act (FCA) to investigate and pursue claims against recipients of federal funds that allegedly violate federal civil rights laws. This memo signals elevated legal risk associated with DEI programs.

According to the Deputy Attorney General, the FCA is implicated "whenever federal-funding recipients or contractors certify compliance with civil rights laws while knowingly engaging in racist preferences, mandates, polices, programs and activities, including through DEI programs that assign benefits or burdens on race, ethnicity, or national origin." In addition to targeting DEI programs, the memorandum also signals that the Department of Justice (DOJ) will focus on using the FCA when a college or university "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." Finally, the May 19 memorandum encourages members of the public to report instances of discrimination by federal-funding recipients to authorities and to file qui tam whistleblower actions under the FCA. 

Most recently, on July 30, 2025, the DOJ issued "Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination," a detailed memorandum that provides a non-exhaustive list of DEI policies and practices that the DOJ deems unlawful and a non-binding list of “best practices’ for entities to adopt to mitigate risks of losing federal funding and liability under federal anti-discrimination laws. Again, in this memorandum, the DOJ urges all entities that receive federal funding to carefully review the guidance and to evaluate their DEI activities.

To proactively address these risks, Steptoe LLP has launched the DEI Enforcement Response Team to help publicly traded companies, higher education institutions, large non-profits, and government contractor clients proactively evaluate risks, respond to certification requests and government inquiries, and navigate FCA investigations and lawsuits.

"The Response Team is a natural extension of our ongoing work reviewing our clients' DEI programs and ensuring compliance with federal anti-discrimination law and new requirements stemming from recent executive orders and agency guidance," said Karima Maloney, who previously served as Deputy Chief of the DOJ Civil Rights Division's Criminal Section.

The Response Team includes Ryan Poscablo, Chair of the Investigations & White Collar practice and former federal prosecutor; Karima Maloney, former Deputy Chief of the DOJ Civil Rights Division's Criminal Section and federal prosecutor; Patrick Linehan, co-chair of the Higher Education practice; Brigida Benitez, a partner in the Investigations & White Collar practice and the firm's General Counsel; Alex Wolf, co-chair of the firm's Higher Education practice; Dwight Draughon, a partner in the Investigations & White Collar practice and former federal prosecutor; and Tyler Evans, a partner in the firm's Government Contracts practice.

The Response Team has extensive relevant experience, including:

• Conducting DEI audits to assess compliance with federal civil rights laws and provide risk-mitigation advice.

• Advising on new federal contracts, funding certifications, and other requirements.

• Responding to government investigations and defending against FCA litigation brought by the government or whistleblowers.

The Response Team also has a long history of advising institutions of higher education, which the group anticipates being particularly targeted by the DOJ. "While we will be ready to help all of our clients seeking compliance advice or litigation representation, the May 19 memorandum appears to target colleges and universities," said Ryan Poscablo. "With many clients in the higher education space, we are experienced at helping schools navigate complex legal issues so they can focus on their missions."

As DOJ and other federal agencies pursue efforts to combat private-sector DEI, Steptoe will continue to provide analysis and updates regarding the federal enforcement landscape and new requirements. For more information, please contact one of the DEI Enforcement Response Team members.