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DOJ’s DEI Federal Fund Recipient Guidance Deserves Attention by Private Sector Employers

Regulatory Roundup: Navigating a New Era

DOJ’s DEI Federal Fund Recipient Guidance Deserves Attention by Private Sector Employers

Employees in the Office

Recipients of federal funds were recently provided with additional insights into the administration’s positions related to diversity, equity, and inclusion (DEI) programs. 

On July 29, 2025, U.S. Attorney General Pam Bondi released a memorandum titled “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination” (the memo). The memo provides a reminder of the administration’s critical posture toward DEI programs for educational institutions, public agencies, and private organizations that receive federal funds. The memo does not announce an outright ban on all DEI practices but could lead to federal fund recipients pulling back from lawful practices meant to promote inclusive workplaces. While targeted at heads of federal agencies and recipients of federal funds, private employers should take notice of the administration’s positions and expect the government to advance such positions if targeted in any investigation. 

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