DOJ Issues New Guidance on “Unlawful DEI”
On July 29, 2025, Attorney General Pam Bondi issued Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination. Here is a link to the Guidance: https://www.justice.gov/opa/pr/justice-department-releases-guidance-recipients-federal-funding-regarding-unlawful.
The Guidance sets forth the bedrock principle that all Americans must be treated equally. It clarifies the application of federal antidiscrimination laws to programs or initiatives that may involve discriminatory practices, including those labeled as Diversity, Equity, and Inclusion. “Entities receiving federal funds, like all other entities subject to federal antidiscrimination laws, must ensure that their programs and activities comply with federal law and do not discriminate on the basis of race, color, national origin, sex, religion, or other protected characteristics – no matter the program’s labels, objectives, or intentions.” The Guidance offers non-binding suggestions for compliance with antidiscrimination laws.
The Guidance defines “unlawful proxy discrimination.” This is the practice of using facially neutral criteria (e.g. “cultural competence,” “lived experience,” or geographic targeting) as proxies for protected characteristics. If these neutral criteria have the intention of advantaging, or disadvantaging, an individual based on protected characteristics, the DOJ will consider the practice unlawful discrimination. The Guidance goes on the opine that a federally funded program which requires applicants to describe “obstacles they have overcome” or submit a “diversity statement” in a manner that advantages those who discuss experiences intrinsically tied to protected characteristics, it will be considered using the narrative as proxy for advantaging that protected characteristic in providing benefits. Bondi Memorandum P.5: Recipients of federal funds should ensure funds are not used to support programs that discriminate unless such practices meet the very narrow exceptions.
The Guidance sets forth examples of “unlawful practices” including,
The Guidance makes several Best Practice recommendations, including:
Contractors should take proactive steps to review its policies and procedures to align with this new Guidance making sure its programs are inclusive, and do not base employment or hiring decisions on otherwise neutral criteria which can be considered “proxy discrimination.”
If you would like more information or assistance, kindly reach out to Lorraine D’Angelo, lorraine@ldaconmplianceconsulting.com or call (914) 548-6369.