Overview

• The July 29 memo interprets Titles VI, VII, and IX as barring preferential treatment, proxy characteristics, segregation, protected-trait considerations, and biased trainings under DEI programs.
• Additional clarifications issued August 7 instruct agencies to use analytic tools and rigorous documentation to identify and prevent proxy discrimination.
• Compliance reviews that began on August 4 prompted federal funding recipients to audit diversity and inclusion policies and remove neutral criteria that function as proxies for protected traits.
• DOJ-recommended best practices include open-access selection processes, elimination of diversity quotas, inclusion of non-discrimination clauses in third-party agreements, and non-retaliation policies for complainants.
• Federal agencies are updating grant conditions and flagging False Claims Act liability for noncompliance as they prepare for closer scrutiny of job descriptions and selection criteria.