The College Fix

Feds launch Civil Rights Fraud Initiative

The Justice Department on Monday launched a new Civil Rights Fraud Initiative that will use the False Claims Act to investigate and pursue claims against federally funded entities that knowingly violate civil rights laws — including colleges and universities.

The act, originally passed by Congress in 1863 to address fraud by defense contractors during the Civil War, will now be used to work to ensure universities and others do not allow civil rights abuses, such as favoring one race over another.

“Institutions that take federal money only to allow anti-Semitism and promote divisive DEI policies are putting their access to federal funds at risk,” Attorney General Pamela Bondi stated in a news release announcing the initiative.

The act allows private citizens to file complaints on behalf of the government, called “qui tam” lawsuits, against those who have allegedly defrauded the government, the department stated, adding those who successfully bring qui tam actions may receive a portion of the recovery.

Essentially, whistleblowers get a share of any fines, which means universities that hide pro-DEI efforts by renaming them or conducting them under the radar would be at risk from campus employees who want to out them to potentially earn a payout, as The College Fix previously reported.

“[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,” according to a DOJ memo outlining the new initiative.

A source who attended a strategy meeting on this new anti-DEI initiative told The College Fix on the condition of anonymity that “I don’t think our elite universities have any idea what is about to hit them.”

“These qui tam lawsuits sprout like mushrooms after a rainstorm, and they are financially ruinous to defend against. Even if they succeed in fending one off, more can follow,” the source said via email.

“The process itself is the punishment,” he added. “This is perfect karma for the kangaroo courts these universities conducted under their weaponized Title IX programs, persecuting students and faculty members for their microaggressions.”

“In the end,” he said, “university general counsels and their insurance companies are going to be the ones cleaning out the dead and dying DEI rot. My advice to anyone following this is to buy more popcorn.”

A recent slew of articles by attorneys published ahead of the initiative show that law firms and others knew this tactic was in the offing.

“Given the potentially significant damages and civil penalties available under the FCA, whistleblowers will have incentives to file qui tam lawsuits alleging that DEI programs resulted in discrimination,” wrote the law firm of Paul Hastings.

Another law firm, Blank Rome, pointed out that even though many workplace DEI programs have been viewed as lawful in the past, the new administration “views DEI programs as a potential source of discrimination.”

The firm’s attorneys warned they anticipate the Trump administration “will seek to vigorously enforce” the executive order to end illegal discrimination and restore merit-based opportunity.

However, “winning an FCA case on the basis that [a] DEI program violates applicable federal law will not be a slam dunk,” according to Blank Rome, since “the plaintiff … bears the burden of proving each element.”

The firm suggested organizations analyze their DEI programs and review their DEI messaging and public statements for appropriateness. “Do not retaliate against employees (or anyone) asking questions about the legality of the DEI program,” counseled Blank Rome.

The College Fix reached out to the U.S. Department of Education and to legal representatives of Paul Hastings, but did not receive a response.

MORE: False Claims Act’ law could be death knell for defiant universities

IMAGE: The Justice Department logo / DOJ screenshot

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