DOJ Investigates Diversity Initiatives Using Fraud Law

The Justice Department (DOJ) is using the False Claims Act to investigate diversity initiatives at some major companies, including Google and Verizon.

The Details: The False Claims Act is typically used to investigate and punish companies that overbill the government in contracts. Using this act, the DOC began issuing civil investigative demands to companies in October, directing them to provide information about their diversity, equity, and inclusion (DEI) programs.

For Context: On the first day of his second term, President Donald Trump signed executive orders aimed at dismantling diversity programs and directing government contractors to end "illegal DEI discrimination." The DOJ's use of the False Claims Act means companies that maintain DEI policies that the Trump administration deems "discriminatory" can be accused of filing "false claims" for government payment.

How the Media Covered It: Wall Street Journal (Center bias) reported that "DEI isn't the only area in which the Trump administration is using the law unconventionally," as the DOJ has also used the False Claims Act to subpoena doctors and clinics it suspects have provided transgender treatments to youth that are banned in some states. New York Post (Lean Right) wrote that the Trump administration is "stepping up its war on DEI" and called the move "part of a broader DOJ push to use the False Claims Act as a civil rights enforcement tool." USA Today (Lean Left) wrote that the Trump administration is using the law to "target" major companies and that the administration has "aggressively" pressured employers to change their hiring practices.

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