New DOJ guidance puts diversity, equity, and inclusion (DEI) programs under scrutiny at universities and business schools, warning that some may violate federal civil rights laws.
In yet another escalation of the Trump Administration’s agenda to reshape higher education, the U.S. Department of Justice last week issued formal guidance warning that even well-intentioned Diversity, Equity, and Inclusion (DEI) programs may violate federal civil rights laws.
The guidance, dated July 29, warns institutions that programs or practices treating individuals differently based on race, sex, national origin, religion, or other protected characteristics are likely unlawful, regardless of intent. It applies to all ”entities receiving federal funds” which could include almost every university, public or private, that accepts federal research dollars, Pell grants, or federal student aid programs. By extension, it would apply to these institutions’ business schools.
“In recent years, the federal government has turned a blind eye toward, or even encouraged, various discriminatory practices, seemingly because of their purportedly benign labels, objectives, or intentions,” reads the memo. “No longer. Going forward, the federal government will not stand by while recipients of federal funds engage in discrimination.”
The document singles out a broad range of DEI-related practices, including race-conscious scholarships, identity-based mentorship programs, and “diverse slate” hiring requirements, asserting that many previously accepted programs now run afoul of federal law.
HOW THE GUIDANCE WILL IMPACT B-SCHOOLS
The DOJ guidance cites several laws as its legal basis:
- Title VI (Civil Rights Act of 1964): Prohibits discrimination based on race, color, or national origin in any federally funded program or activity, including most educational institutions, healthcare providers, and state and local government agencies.
- Title VII (Civil Rights Act): Prohibits employment discrimination including hiring, firing, promotion, and training based on race, color, religion, sex, or national origin.
- Title IX (Education Amendments of 1972): Prohibits sex-based discrimination in education programs, including athletics, addressing sexual harassment, admissions policies, and equal access to resources and programs.
- Equal Protection Clause (14th Amendment): Bans discriminatory treatment by state actors, relevant to public universities and local governments.
The memo also cites the 2023 Supreme Court decision Students for Fair Admissions v. Harvard, which invalidated race-conscious admissions and clarified that even private institutions may lose funding under Title VI for race-based practices.
It then outlines 13 specific examples of DEI-related practices that may violate federal law, many of which previously would have been widely accepted DEI practices. These include race- and sex-based scholarships and fellowships, identity-specific mentorship or leadership programs, BIPOC-only lounges or study centers; admissions essays focused on cultural identity, and hiring practices that require diversity statements or prioritize “lived experience.”
So, scholarships targeting women – like the Forte Foundation’s and numerous B-school specific scholarships – may suddenly be at risk in the U.S. Same with programs that work to elevate minority candidates in business education or in their careers like The Tenure Project, The PhD Project, The Consortium For Graduation, and others.
(Note: A Forté representative reached out to P&Q after publication writing, “the Forté Fellows program is open to students of all nationalities, genders, and gender identities as noted on the Forté Fellows website.” The fellowship has traditionally been focused on women candidates, and some of its partner business schools still advertise the scholarships for women MBA candidates.)
The memo also targets gender identity protections, stating that it is “typically unlawful” for institutions to allow transgender women in female sports or locker rooms. That mirrors recent enforcement action taken against the University of Pennsylvania, Wharton’s home institution, which in June agreed to ban transgender women from competing in female sports in exchange for the restoration of $175 million in paused federal funding.
DIVERSITY OF THOUGHT WITHOUT DEI?
Diversity of thought has long been a mantra in business schools, a core belief that classrooms filled with different life experiences and worldviews produce better learning, better leaders, and better outcomes.
However, even before the release of the DOJ’s memo, the Trump administration’s anti-DEI agenda had successfully chilled diversity and equity programs at business schools across the country.
- The Chronicle of Higher Education’s DEI tracker reports that 387 college campuses in 45 states have dismantled or scaled back DEI programs since January 2023 when it started counting.
- Several of Harvard University’s graduate schools closed their DEI offices over the last month, according to The Harvard Crimson. At Harvard Business School, webpages that showed support of minority, women, and LBGTQ students have been removed while “diversity and inclusion” staff are now labeled “community and culture” staff in their titles.
- Since July 1, three U.S. business schools have ended long-standing partnerships DEI-related groups: University of Texas at Austin’s McCombs School of Business ended its 40-year partnership with the Consortium for Graduate Study in Management which works to increase minority representation in business leadership through top-ranked MBA programs. The Wharton School at the University of Pennsylvania ended its membership with the Forté Foundation which does the same for women. University of Virginia’s Darden School of Business suspended its partnerships with both groups.
And in March, Trump’s Department of Education launched a Title VI Civil Rights Act investigation against the The PhD Project, which has worked for more than three decades to increase the number of Black, Hispanic, and Native American professors in U.S. business schools. The investigation named 45 affiliated business schools and universities including Yale, Cornell, MIT, NYU, and Berkeley. At least 20% of schools limited their PhD Project participation soon after.
“We’re resetting. We’re developing new programs that comply with federal law but still reflect our mission of cultivating talent and excellence. A year or two from now, we’ll look back and say: we came through this stronger,” PhD Project CEO Alfonzo Alexander told Poet&Quants at the time.
“We believe in what we do. We believe in the power of education, representation, and mentorship. And we’re not backing down.”
The PhD Project’s homepage today (August 4) has no mention of Black, Hispanic or minority PhD candidates. Its tagline says “Enriching Education For All.”
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