The DOJ crackdown on corporate DEI is getting real

MS NOW - One of the first executive orders President Donald Trump signed in January declared war on diversity, equity, and inclusion, or “DEI,” initiatives in schools and workplaces. It’s been left to the Justice Department’s overstretched team of government lawyers to pick battles in the president’s campaign against equality measures. According to The Wall Street Journal, the DOJ is now scrutinizing corporations with federal contracts, including Alphabet’s Google and Verizon Communications. (Neither the companies named nor the Justice Department provided comment to the Journal, and MS NOW has yet to independently verify the Journal’s reporting.)

The Justice Department is reportedly looking to make novel use of the False Claims Act, an 1863 law written to take on profiteering defense contractors bilking the Union government. In recent years, it’s been more often used against health care corporations that overcharge the government for services provided. 

Deputy Attorney General Todd Blanche flagged this new approach using the False Claims Act in a May memo announcing a new “Civil Rights Fraud Initiative.” Blanche asserted that Trump’s executive order “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” bars companies from taking federal money “while knowingly engaging in racist preferences, mandates, policies, programs, and activities,” including DEI programs. Those who do, he warned, could be held liable under the False Claims Act.  MORE

Aside from the major shift in how the Trump administration law wants this law applied, Blanche’s memo marks a change in how the Justice Department is handling these cases.