The U.S. Department of Justice, under Attorney General Bondi, has just released its long-anticipated Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination, issued today, July 29, 2025.
This guidance is a game-changer for all entities receiving federal funds, including federal contractors, educational institutions, and state/local agencies. It outlines what is now considered unlawful discriminatory practices, particularly in the context of DEI (Diversity, Equity, and Inclusion) initiatives, hiring, training, and contracting.
Key Takeaways:
- Use of race, sex, or other protected characteristics in employment, scholarships, or program participation, directly or indirectly, is now considered unlawful unless meeting strict legal scrutiny.
- DEI training and policies that stereotype or exclude individuals based on protected characteristics may constitute a violation of Title VI, Title VII, or Title IX.
- “Facially neutral” criteria (like “lived experience” or “cultural competence”) that serve as proxies for race or sex are flagged as potential legal risks.
- Single-sex intimate spaces and athletic competitions must be based on biological sex to ensure compliance.
- Retaliation protections are reaffirmed for individuals who object to or refuse to participate in discriminatory programs or training.
What You Should Do:
- Immediately review all DEI, hiring, training, and grant-related practices and policies.
- Evaluate whether any criteria or program may serve as a proxy for protected characteristics.
- Ensure that all federally funded activities, direct or through third parties, comply with the guidance.
- Update anti-retaliation policies and reporting channels.
We are reviewing this guidance in detail and will provide a breakdown of the recommended next steps shortly. If you would like our help reviewing or updating your compliance practices, please reach out directly.