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
*Admitted only in New York; practicing law in the District of Columbia under the supervision of principals of the firm who are members in good standing of the D.C. Bar.
Capabilities
Suggested News & Insights
Sidley Lawyers Karen Popp, Kristin Graham Koehler, and Lisa Miller to Speak at the ABA's 2026 White Collar Crime Institute in San DiegoTuesday, March 10 – Friday, March 13, 2026U.S. FTC Signals Renewed Interest in “Click-to-Cancel” RulemakingFebruary 9, 2026Sidley Represents Optimas Solutions in the Carve-Out Sale of Its International BusinessFebruary 6, 2026Sidley Represents Bonaccord Capital in Increased Minority Investment in Park Square CapitalJanuary 21, 2026FY 2025 FCA Settlements and Judgments Statistics Show Highest Recoveries EverJanuary 20, 2026Sidley Advises on Market-Defining Cross-Border India Matters in 2025January 12, 2026
- Stay Up To DateSubscribe to Sidley Publications
- Follow Sidley on Social MediaSocial Media Directory


