The Department of Justice (DOJ) is reimagining how it enforces the False Claims Act (FCA), and federal contractors, colleges, and universities should take note of this development.
In May 2025, the DOJ launched the Civil Rights Fraud Initiative, a bold strategy that links the administration’s view of civil rights contracting compliance to financial crimes. For the first time, the federal government will pursue FCA claims against contractors and schools that violate civil rights laws while receiving federal funds.
This shift marks a dramatic expansion in how the FCA is applied, moving beyond traditional fraud claims to encompass alleged violations regarding contracting preferences, set-aside contracts, and other commonplace arrangements for contracts, with severe consequences. If your company or institution is concerned about exposure, it’s wise to speak with a False Claims Act lawyer to understand your risk and legal options.
What is the Civil Rights Fraud Initiative?
Announced by Deputy Attorney General Todd Blanche, the DOJ’s Civil Rights Fraud Initiative aims to hold federal contractors and federally funded institutions accountable if they violate federal civil rights laws like Titles IV, VI, and IX of the Civil Rights Act of 1964.
According to the DOJ, schools and contractors may face liability under the FCA if they:
- Promote discriminatory DEI policies in contracting or hiring
- Fail to protect Jewish students from antisemitism
- Allow men into women’s restrooms
- Require women to compete against men in sports
These examples, included in a DOJ memorandum, signal that false certifications of compliance with civil rights laws, especially in contracts, grant applications, or federal funding renewals, can now lead to FCA enforcement.
The initiative will be co-led by the DOJ’s Civil Division’s Fraud Section and Civil Rights Division, with every U.S. Attorney’s Office appointing an Assistant U.S. Attorney to support these efforts.
Why this matters: FCA meets civil rights enforcement
Traditionally, the False Claims Act has been used to prosecute financial fraud, such as overbilling, kickback schemes, and false certifications of regulatory compliance. But this initiative opens the door to FCA actions involving government contractors based on civil rights violations, a significant evolution in enforcement strategy.
It also aligns with Executive Order 14173, signed in January 2025, which requires all recipients of federal funds to certify that their programs comply with anti-discrimination laws. Failure to do so, knowingly or recklessly, can now be treated as submitting a false claim.
What contractors and higher education institutions need to do now
Anyone that receives federal funding–including contractors and schools–must now assess their legal exposure under the FCA through a new lens. Even well-intentioned DEI policies or campus rules could lead to allegations of civil rights fraud if they’re found to discriminate based on race, gender, religion, or national origin.
To reduce risk, institutions should:
- Conduct immediate policy audits of DEI initiatives, athletics participation rules, housing, and restroom access, and student conduct codes.
- Involve legal counsel to review language and application of anti-discrimination policies.
- Ensure accuracy in every federal funding certification or grant submission.
- Train staff and administrators on DEI compliance with federal civil rights laws and enforcement priorities.
Failure to take proactive steps could result in not only FCA liability but also loss of federal funding and significant reputational damage.
While higher education is one focus, the Civil Rights Fraud Initiative also applies to government contractors and grant recipients. If an entity certifies compliance with civil rights laws to receive federal dollars but is found to discriminate in hiring, benefits, or operations, it could be exposed to FCA claims.
For example, a contractor with discriminatory hiring practices who signs a blanket certification of compliance on a federal grant application may be vulnerable to both DOJ investigation and whistleblower claims.
The path forward: How Griffin Durham Tanner & Clarkson can help
At Griffin Durham Tanner & Clarkson LLC, our attorneys have deep experience with complex False Claims Act investigations, including those involving universities, contractors, and government grant recipients.
We’ve prosecuted and defended FCA cases, resulting in over $100 million in recoveries and judgments. Our team includes former federal prosecutors, relator counsel, and defense attorneys who understand every angle of FCA litigation.
We can help you:
- Conduct internal audits of compliance and certifications
- Respond to subpoenas or civil investigative demands
- Defend against FCA whistleblower lawsuits or government enforcement
- Develop policies that reduce long-term FCA risk
And as the DOJ’s Civil Rights Fraud Initiative gains traction, we’ll continue monitoring how it’s applied to higher education and other sectors.
Contact a False Claims Act attorney today
If you represent a university, contractor, or other federal funding recipient and have concerns about FCA exposure, now is the time to act.
To speak with an experienced False Claims Act attorney, call us at (404) 891-9150 or contact us online to schedule a consultation. With the DOJ’s approach evolving rapidly, Griffin Durham Tanner & Clarkson LLC can help make sure your institution stays protected, compliant, and prepared.