DOJ’s DEI Directive: Navigating New Compliance Risks
On July 29, 2025, the U.S. Department of Justice issued a memorandum to federal agencies titled “ Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination ”. The Guidance is intended to clarify how federal antidiscrimination laws apply to “programs or initiatives that may involve discriminatory practices, including those labeled as Diversity, Equity, and Inclusion (“DEI”) programs.” Although the Guidance’s title suggests that it applies only to entities receiving federal funding, the Guidance advises entities that are “otherwise subject to federal antidiscrimination laws, including educational institutions, state and local governments, and public and private employers” to “review this guidance carefully to ensure all programs comply with their legal obligations. ” This Guidance builds on Executive Order 14173 ( Ending Illegal Discrimination and Restoring Merit-Based Opportunity ), dated January 21, 2025, which condemns “illegal DEI discrimination and preferences” an...