Westlaw Today
U.S. DOJ Issues Guidance on ‘Unlawful Discrimination’ Related to DEI Programs for Recipients of Federal Funding
September 3, 2025
On July 30, 2025, the U.S. Department of Justice (DOJ) issued guidance addressing the application of federal antidiscrimination laws to recipients of federal funds and other covered entities. The non-binding guidance cautions that programs labeled as diversity, equity, and inclusion (DEI) initiatives may still be subject to scrutiny if they involve criteria that operate as “unlawful proxies” for protected characteristics. Examples identified by DOJ include characteristic-based scholarships, preferential hiring or promotion, affinity groups, and race-based training sessions. The guidance also underscores that entities may be held responsible for the practices of contractors or grantees, and it outlines “best practices” to mitigate risk, such as using job-related criteria, ensuring broad access, and documenting legitimate decision-making rationales.
Contacts
Capabilities
Suggested News & Insights
Bay Area General Counsel RoundtableThursday, September 24, 2026Sidley Secures Presidential Pardon for Pro Bono Client Jonathan LongSeptember 11, 202622 Sidley Lawyers Named to 2027 Lawdragon 500 Leading Litigators in AmericaSeptember 11, 2026SEC Proposes to Rescind Investment Adviser Pay-to-Play RuleSeptember 10, 2026Planning for the Impact of FinCEN’s Corporate Transparency Act RollbackSeptember 9, 2026Permission to Speak (and a Reason To): FinCEN and Banking Agencies Clarify SAR Confidentiality Rules for Customer Communications About Fraud and Account ClosuresSeptember 8, 2026
- Stay Up To DateSubscribe to Sidley Publications
- Follow Sidley on Social MediaSocial Media Directory


