DOJ Civil Division Prioritizes Illegal DEI

Combatting “illegal” Diversity, Equity and Inclusion (DEI) remains a “Day One” priority in Washington. President Trump issued executive orders on DEI on his first day in office. Attorney General Bondi likewise issued her own memos on her first day at the Department of Justice. And now, the new head of the Department of Justice’s Civil Division has followed suit and issued his own memo on his first day, marking DEI-related topics as two of the Division’s top five priorities. This is yet another indicator that the administration appears to be shifting into the enforcement phase of its DEI reset. Health care and life sciences companies have particular reason to take note.

Civil Division Memorandum

On June 11, 2025, the newly confirmed head of the Department of Justice’s Civil Division, Assistant Attorney General (AAG) Brett Shumate, issued a memo on the Civil Division’s enforcement priorities (June 11 Memo). The memo identified five priority areas, with DEI topping the list. The memo flags that the Civil Division plans to use “all available resources” to combat illegal DEI practices, specifically by bringing suits under the False Claims Act (FCA) and “aggressively investigat[ing]” recipients of federal funds. 

Other priorities on the list include enforcement against recipients of federal funds that participate in or allow antisemitism; investigations into pharmaceutical companies and hospitals providing gender transition services; ending sanctuary jurisdictions; and instituting civil denaturalization proceedings against those who “illegally procured” citizenship.

Priority #1 – “Combatting Discriminatory Practices and Policies”

The June 11 Memo asserts that the Civil Division’s top priority will be supporting the Trump administration’s fight against “illegal DEI.” Beyond its place at the top of the list, the Civil Division’s prioritization of combatting discrimination stands out because, under Department regulations, the Civil Rights Division traditionally is responsible for enforcing civil rights laws. 28 C.F.R. 0.50(a). This is a further signal that the administration intends an innovative approach, using other statutes, like the FCA, as we wrote about here, to pursue DEI goals. 

This mission was first articulated in President Trump’s Executive Order 14173 (EO), which directed every federal agency to identify ways to “deter” DEI in the private sector and called for using the FCA against contractors and grantees who pledge to follow U.S. antidiscrimination laws but maintain unlawful DEI practices. Attorney General Pam Bondi later reiterated this sentiment in a February 5, 2025 memo and directed the DOJ to align its “litigating positions with [the] requirement of equal dignity and respect.” 

In the June 11 Memo, AAG Shumate emphasized the Civil Division’s commitment to these principles by directing the Division to file suit under the FCA against entities engaged in “illegal DEI” practices. These efforts will help advance DOJ’s new Civil Rights Fraud Initiative, which aims to “utilize the False Claims Act to investigate and, as appropriate, pursue claims against any recipient of federal funds that knowingly violates federal civil rights laws.”  The June 11 Memo instructs the Civil Division to fully cooperate with the Civil Rights Division, relators, other whistleblowers, and federal agencies to pursue these claims. Companies should also be mindful of the Attorney General’s February memorandum that directed the Department to consider criminal charges related to DEI.

Priority #3 – “Protecting Women and Children”

In line with combating illegal DEI, the memo also prioritizes the administration’s focus on gender and gender identity. Following the President’s executive orders on gender, on April 22, 2025, Attorney General Pam Bondi issued a memo (April 22 Memo), directing the Civil Division to investigate potential violations of the Food, Drug, and Cosmetic Act (FDCA) by manufacturers and distributors of drugs related to “gender transition.” The April 22 Memo also directed the Civil Division’s Fraud Section to investigate violations of the FCA by physicians and hospitals providing “impermissible services” like puberty blockers and gender transition procedures while billing to Medicare and Medicaid under legitimate purposes. 

The June 11 Memo includes these directives as the Civil Division’s third priority and promises to also use “all available resources” to prioritize the investigation of doctors, hospitals, pharmaceutical companies, and other related providers regarding potential violations of the FDCA or the FCA. 

Key Takeaways

President Trump’s original DEI-related executive order directed the administration to develop plans to combat “illegal DEI” in 120 days, or by mid-May. With that deadline recently passed, the Department of Justice appears to be signaling its plans to meet the President’s directive, launching cross-component teams and making DEI the Civil Division’s top priority. In 2025, DEI is not simply an employment law issue. Whether companies have already evaluated their DEI initiatives this year or not, they should consider taking stock now to gauge their potential exposure to FCA whistleblower, FDCA, or other claims. 

Freshfields’ cross-disciplinary, cross-border team combines investigators, litigators, and governance attorneys, and is continuing to evaluate the rapidly evolving DEI landscape, now including the possibility of FCA and FDCA investigations and enforcement actions. Should you have any questions about the June 11 Memo’s implications for your business, or require guidance on managing DEI-related risks, please do not hesitate to contact us.