DOJ Memo Declares Race-Based Scholarships and DEI Programs Unlawful in Sweeping Federal Guidance

UnmutedNewswire

Jul 31, 2025 - 16:32

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DOJ Memo Declares Race-Based Scholarships and DEI Programs Unlawful in Sweeping Federal Guidance

A Justice Department memo issued July 29, 2025, warns that scholarship programs and initiatives favoring specific races or sexes violate anti-discrimination laws and risk federal funding loss.

In an example to support one of its recommendations, the memo said that “a scholarship program must not target ‘underserved geographic areas’ or ‘first-generation students’ if the criteria are chosen to increase participation by specific racial or sex-based groups.”

What We Know:

On July 30, 2025, the DOJ released guidance reinforcing that recipients of federal funding—including universities, nonprofits, and contractors—must not implement programs based on race, sex, or other protected characteristics.
The memo specifically lists race-based scholarships, recruitment mandates targeting underrepresented racial groups, and DEI hiring or training practices that give preference by race or gender as unlawful.
Even facilities such as BIPOC-only lounges or study spaces are declared impermissible under the guidance, regardless of intent or claimed inclusivity.
The guidance builds upon a February 2025 Education Department “Dear Colleague” letter ordering institutions to halt racial preferences in admissions, scholarships, hiring, and rewards—or face potential investigations and loss of funding.
The DOJ warns grants or contracts tied to DEI programming—including scholarships for specific races or cultures—could trigger financial penalties or civil liability under new enforcement efforts like the Civil Rights Fraud Initiative.
In prior enforcement action, the DOJ forced the suspension of an Illinois state race-only scholarship program after determining it violated the Fourteenth Amendment; major universities including Northwestern, Loyola, and UChicago ended their participation.

With this memo, the DOJ conveys a clear directive: race- or gender-based scholarships and other identity-driven DEI efforts are now considered unlawful, prompting widespread reevaluation of existing programs and the potential for legal and financial consequences for non‑compliance.