Trump DOJ Cracking Down On Companies

The Trump administration has launched a major new enforcement effort targeting diversity-based hiring and promotion policies at large U.S. corporations that receive federal tax dollars, according to a report from The Wall Street Journal.

The investigation focuses on whether companies that hold lucrative federal contracts are complying with long-standing civil-rights and nondiscrimination laws — or whether they are quietly continuing race-based employment practices under the banner of Diversity, Equity, and Inclusion, commonly known as DEI.

DOJ Requests Records From Major Corporations

Among the companies that have reportedly received formal requests for documents are Google and Verizon. According to sources familiar with the matter, the Department of Justice is seeking detailed information about hiring, promotion, and internal workplace policies tied to diversity initiatives.

Additional firms across the automotive, pharmaceutical, defense, and utilities industries are also said to be under scrutiny, particularly those that rely heavily on federal contracts or taxpayer-funded programs.

Trump Administration Moves Quickly on DEI

Since returning to office in January, President Donald Trump has taken swift action to eliminate DEI programs within the federal government and discourage their use in private companies and educational institutions that receive public funding.

Administration officials argue that race-based preferences — regardless of how they are labeled — undermine merit-based hiring and violate equal-protection principles embedded in federal law.

False Claims Act Used as Enforcement Tool

The investigations are being conducted under the False Claims Act, a powerful antifraud statute traditionally used to recover taxpayer money from contractors who misrepresent their compliance with government rules or improperly bill federal agencies.

Under the Trump administration’s legal theory, companies that certify compliance with federal nondiscrimination requirements while continuing to use DEI hiring preferences may be committing fraud against the government.

If violations are proven, the DOJ could seek to recover millions of dollars from corporations found to be out of compliance.

New DOJ Memo Signals Aggressive Enforcement

In a May enforcement memo, Deputy Attorney General Todd Blanche instructed federal prosecutors to investigate any recipient of federal funds that knowingly engages in employment practices that create benefits or penalties based on race, ethnicity, or national origin.

The memo made clear that private companies and educational institutions with government contracts would face consequences if they continued DEI policies after President Trump signed an executive order banning what he described as discriminatory race- and sex-based preferences in government-related work.

Blanche described the False Claims Act as a key enforcement “weapon” to be used against organizations that refuse to abandon such practices.

Companies Reevaluate Policies Amid Legal Risk

Legal experts say the approach marks a notable shift in how the federal government is enforcing compliance. Still, many companies are already reassessing their workplace policies to avoid potential exposure.

Lisa Dykstra, a partner at Morgan Lewis, said businesses with federal contracts are closely reviewing hiring and promotion standards in response to the administration’s stance.

As enforcement ramps up, companies that rely on taxpayer dollars may face increasing pressure to demonstrate that their employment decisions are based on qualifications — not political or ideological mandates.