DOJ launches civil-rights fraud initiative using the False Claims Act against DEI contractors

Deputy Attorney General Todd Blanche issued a memorandum on May 19, 2025, establishing the DOJ Civil Rights Fraud Initiative to use the False Claims Act against federal contractors and grant recipients that maintain DEI programs in violation of EO 14173. The initiative directed the DOJ Civil Fraud Section and Civil Rights Division to jointly investigate contractors who certified compliance with anti-discrimination requirements while allegedly maintaining discriminatory DEI practices. It was the first-ever use of the False Claims Act — a Civil War-era anti-fraud statute — to enforce an affirmative action ban.