Attorney General Orders Investigation of Federally Funded Private Sector Institutions for Potential Civil Rights Violations

Skadden Publication / Executive Briefing: Latest Updates on the Trump Administration

Maria Cruz Melendez

On February 5, 2025, the Office of the Attorney General issued a memorandum to all Department of Justice (DOJ) employees titled “Ending Illegal DEI and DEIA Discrimination and Preferences,” mandating investigation of diversity, equity, inclusion and accessibility (DEI and DEIA) programs and policies within federally funded private sector institutions for potential violations of civil and criminal civil rights laws. (See our DEI analysis.)

The memo was issued the day Pam Bondi was sworn in as U.S. attorney general and cites the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College and Students for Fair Admissions, Inc. v. University of North Carolina (SFFA) and President Donald Trump’s Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which states that policies relating to DEI and DEIA “‘violate the text and spirit of our longstanding federal civil-rights laws’ and ‘undermine our national unity.’”

The memo states that the DOJ’s Civil Rights Division will “investigate, eliminate, and penalize illegal DEI and DEIA preferences, mandates, policies, programs, and activities in the private sector and in educational institutions that receive federal funds.” The memo excludes from its mandate “educational, cultural, or historical observances” that celebrate diversity, recognize historical contributions and promote awareness, but do not discriminate, exclude or divide based on race or sex.

The memo instructs that, by March 1, 2025, the Civil Rights Division and the Office of Legal Policy must submit a joint report containing recommendations for enforcing federal civil rights and other “appropriate measures to encourage the private sector to end illegal discrimination and preferences, including DEI and DEIA.”

Among other things, the report is expected to outline the “most egregious and discriminatory DEI and DEIA practitioners of concern” and set forth strategies to deter such programs, including through criminal and civil investigation, litigation and regulatory actions.

Finally, the memo also instructs the DOJ to work with the Department of Education to issue directions and directs the Civil Rights Division to pursue actions to ensure that relevant institutions comply with SFFA.

While additional clarity on the implications of this memo is necessary, entities in the private sector receiving federal funds should consider reviewing their DEI-related policies to gauge whether they fit within the scope of this recent mandate by the attorney general and whether any such policies require appropriate updates.

See the full Executive Briefing publication

This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.

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