Trump administration puts colleges on notice in new DOJ memo: End DEI programs or risk losing federal funds
In a sweeping new move, the Trump administration has escalated its efforts to dismantle Diversity, Equity, and Inclusion (DEI) initiatives across U.S. institutions. A memo released Wednesday by the Department of Justice (DOJ) warns that recipients of federal funding including schools, colleges, universities, and nonprofits, could lose their funding if they continue to run DEI-focused programs.The memo outlines specific restrictions, signalling a major policy shift that could significantly impact how U.S. campuses support diversity-related initiatives.
What the DOJ memo says
The Justice Department memo provides detailed examples of what kinds of DEI-linked efforts are now considered noncompliant with federal civil rights law if they use federal funds. These include:
- Scholarships and grants that prioritise “underserved geographic areas” or “first-generation students,” if those categories are selected with the intent of increasing participation among specific racial or sex-based groups.
- Programs targeting low-income students, which must now apply uniformly without consideration of racial or gender outcomes.
- Partnerships with third-party DEI organisations using federal funds, which are now discouraged or outright prohibited.
Instead, institutions are urged to adopt neutral criteria such as academic merit or financial need, without considering demographic characteristics or outcomes.
Who is impacted
This new guidance affects a wide range of entities that receive federal funds, including:
- Public and private universities
- K–12 school districts
- Nonprofit research and education institutions
- Private contractors doing government work
Many of these organisations have long relied on DEI frameworks to ensure fair representation and support for historically marginalised groups, including women, ethnic minorities, LGBTQ+ communities, and people with disabilities. Now, such frameworks are under threat.
A sharp turn in federal education policy
This DOJ memo is the clearest sign yet of the Trump administration’s intent to erase DEI from publicly funded spaces. Since taking office in January 2025, President Trump has:
- Canceled executive branch DEI offices and programs
- Fired officials involved in diversity initiatives
- Threatened funding to schools over protests, environmental policies, and transgender protections
The new memo adds legal pressure, making it harder for institutions to maintain inclusive programming while remaining eligible for federal support.
What colleges may do next
Colleges now face urgent questions:
- Should they eliminate DEI programs that are federally funded?
- Can diversity goals be reframed in race- or gender-neutral terms?
- How will student services and campus climate change?
Some institutions may choose to self-audit or rebrand existing programs to avoid legal challenges. Others may pursue legal action, arguing that the DOJ’s interpretation misapplies civil rights law.Meanwhile, DEI departments, training programs, and scholarships tied to identity-based goals face an uncertain future.
The bigger picture
This development comes amid a broader national reckoning over affirmative action, campus speech, and federal oversight of education. Following the Supreme Court’s 2023 decision striking down race-conscious college admissions, many universities have been reevaluating how they address diversity and inclusion.The DOJ memo accelerates that reevaluation — replacing encouragement with enforcement.Trump’s latest directive puts colleges at a crossroads: scale back DEI programs or risk losing crucial federal funds. As campuses navigate this shift, the future of diversity and inclusion in American higher education hangs in the balance.TOI Education is on WhatsApp now. Follow us here.
