DOJ Will Use False Claims Act to Pursue Civil Rights Violations
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APPLIES TO All Employers Receiving Federal Funds |
EFFECTIVE May 19, 2025 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
On May 19, 2025, the U.S. Department of Justice’s (DOJ) Deputy Attorney General Todd Blanche issued a guidance memo stating the DOJ will use the False Claims Act (FCA) to investigate recipients of federal funds who knowingly violate federal civil rights laws. The memo Civil Rights Fraud Initiative specifically cites enforcement of the Attorney General memo Ending Illegal DEI and DEIA Discrimination and Preferences (February 5, 2025) as the primary object of utilizing the FCA. The Attorney General’s memo was in support of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity.
The FCA primarily targets contractors and prevents them from making false representations to the government. Specifically, a federal contractor who knowingly does not comply with a material statutory, regulatory, or contractual requirement has provided a false certification to the government and is in violation of the FCA. Penalties range from criminal to civil, including treble damages.
The memo provides the following examples of how a federal fund recipient could violate the FCA: “[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.” It also cites utilizing diversity, equity, and inclusion (DEI) programs that assign a benefit or burden on race, ethnicity, or national origin.
To utilize the FCA as a tool for prosecuting civil rights violations, the memo announces the creation of the Civil Rights Fraud Initiative which will be co-led by the Civil Division’s Fraud Section and the Civil Rights Division. The Fraud Section is already tasked with enforcing the FCA. Both divisions will work with other federal agencies to share information and coordinate enforcement actions against federal funding recipients. Private parties are also encouraged to file lawsuits and litigate claims under the FCA and report any violations to the DOJ.
Recipients of federal funds were already under scrutiny for possible “illegal” DEI programs. Impacted employers should review their current and future federal contract certifications and DEI programs with legal counsel to ascertain and mitigate any risk exposure.
Action Items
- Read the Civil Rights Fraud Initiative memo here.
- Review federal contract certifications and DEI programs with legal counsel.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase