An article from Colleges could be targeted anew under fraud law, DOJ says

The agency created a civil rights initiative to seek out violations of the False Claims Act, which could include diversity initiatives.

Published May 20, 2025 Ben Unglesbee Senior Reporter

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The U.S. Department of Justice could begin bringing cases against universities under the False Claims Act, which prohibits fraud among those receiving government funds. Kevin Dietsch via Getty Images

The U.S. Department of Justice on Monday opened another line of legal attack against colleges over their diversity, equity and inclusion efforts, policies on transgender athletes and other Trump administration targets.

In a memo to Justice Department staff, Deputy Attorney General Todd Blanche directed the creation of a Civil Rights Fraud Initiative to pursue damages and penalties under the False Claims Act. The government could use the act to pursue fraud claims against any federal funding recipients, including colleges that get Title IV student aid. 

Blanche specifically pointed to higher education institutions as potential targets. 

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“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,” Blanche said in the memo.

Blanche also suggested that False Claims Act violations under this administration could include DEI programs that “assign benefits or burdens on race, ethnicity, or national origin.” He did not, however, list examples. 

The deputy AG cited the Supreme Court’s 2023 ruling banning race-conscious admissions and President Donald Trump’s executive order in January targeting DEI policies at colleges and other organizations. 

The Civil Rights Fraud Initiative will be led jointly by the department’s Civil Fraud Section and Civil Rights Division. Blanche said the two units will regularly meet to discuss potential violations and engage with relevant federal agencies, including the U.S. Department of Education. 

Blanche meanwhile encouraged private parties to file lawsuits under the False Claims Act on the government’s behalf. 

The administration has already pulled hundreds of millions of dollars from top colleges — including Columbia and Harvard universities — over accusations that they haven’t done enough to prevent antisemitic harassment. It also froze $175 million to the University of Pennsylvania, citing its policies on transgender athletes.

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