Justice Department warns federal funding recipients against DEI discrimination

The Justice Department releases guidance for recipients of federal funding on July 30, 2025, saying civil rights laws apply to programs that use race, color, national origin, sex, religion, or other protected traits in discriminatory ways, including programs labeled as diversity, equity, and inclusion. Attorney General Pam Bondi says the department will not allow federal funds to support illegal discrimination. The guidance does not ban every diversity-related practice, but it tells universities, nonprofits, companies, and other federally funded entities to review race-conscious scholarships, hiring pipelines, training programs, affinity groups, and other initiatives for legal risk. Assistant Attorney General Harmeet Dhillon says the department is tying federal funding enforcement to a principle of equal opportunity regardless of race or other protected traits. The move extends the Trump administration's anti-DEI campaign from federal agencies and contractors into the broader universe of federal grant recipients. The Justice Department uses anti-discrimination law to challenge programs that were often designed to address racial exclusion and unequal access.