The guidance reflects a key step in the administration’s broader strategy to root out DEI efforts in the private sector.

By Danielle Conley, Danielle J. McCall, Anne W. Robinson, Jude Volek, Rhea Marie Fernandes, and Catherine J. Yao

On July 29, 2025, US Attorney General Pam Bondi issued a memorandum that provides guidance for recipients of federal funding regarding “unlawful discrimination” on the basis of race, color, national origin, sex, religion, or other protected characteristics (the Guidance). The Guidance aims to clarify the application of federal anti-discrimination laws to programs or initiatives that, according to the Department of Justice (DOJ), may be discriminatory, including efforts related to diversity, equity, and inclusion (DEI). Further, the Guidance provides recommendations regarding “best practices” for complying with federal anti-discrimination laws.

The Guidance is consistent with the Trump administration’s previously articulated views on DEI practices that may violate federal anti-discrimination laws and further underscores that the administration will scrutinize certain diversity- and equity-related efforts that have been historically viewed as lower risk. Moreover, the Guidance signals that the administration may seek to hold recipients of federal funding liable for the conduct of third parties.

For an outline of DOJ’s identified policies and practices that may run afoul of federal law, the recommended “best practices,” and our key takeaways for entities across all sectors, see our Client Alert.