On May 19, 2025, the U.S. Department of Justice announced its new Civil Rights Fraud Initiative, which aims to use the False Claims Act (FCA) to investigate and pursue claims against entities that tolerate antisemitism, allow men to enter women’s spaces or compete in female athletic competitions, or engage in unlawful diversity, equity and inclusion practices. A central focus of the initiative appears to be pursuing claims against entities that certify compliance with civil rights laws while “knowingly” engaging in what the memorandum calls “racist preferences, mandates, policies, programs, and activities, including thorough [DEI] programs” that provide benefits based on race, ethnicity or national origin. The DOJ encourages private parties to engage as part of this process by filing lawsuits and litigating claims under the FCA as qui tam relators.

Read on to learn more about the initiative and how it could impact federal contractors, educational institutions and other entities that received federal funding.