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DOJ memo presses federal funding recipients to nix DEI
UNITED STATES, JUL 30 – The DOJ memo targets DEI practices that use race proxies and warns federally funded institutions they risk losing grants if they continue such programs, affecting colleges nationwide.
On July 30, 2025, the U.S. Department of Justice released guidance declaring DEI practices unlawful and warning it may strip funding from federally funded institutions.
Following a federal judge’s temporary block of Education Department guidance, the memo builds on the Trump administration’s efforts to dismantle DEI programs, with the DOJ deeming practices unlawful.
The memo also lists requirements to demonstrate ‘cultural competence’, ‘lived experience’ or ‘cross-cultural skills’ as potentially unlawful proxies and states that BIPOC-only study lounges are unlawful.
The DOJ warns that recipients of federal funds engaging in prohibited DEI practices could face loss of grant funding and penalties under the Civil Rights Fraud Initiative.
This shift could force colleges to rethink recruitment since the Supreme Court affirmative action ban in 2023, as multiple colleges have closed centers catering to specific student groups in recent months.