
Life Sciences Law Update
On July 29, 2025, Attorney General Pam Bondi issued a Memorandum to all Federal Agencies (“Memorandum”) with “guidance for recipients of federal funding regarding unlawful discrimination.” The guidance says it “clarif[ies]” the application of federal antidiscrimination laws to programs or initiatives that “may” involve discriminatory practices, “including those labeled as Diversity, Equity, and Inclusion (‘DEI’) programs.” The Memorandum also sets forth “Best Practices” on various topics, which the Memorandum characterizes as “non-binding suggestions to help entities comply with federal antidiscrimination laws and avoid legal pitfalls.”
This advisory describes key aspects of the Memorandum and highlights the ways in which the Memorandum focuses on higher education institutions. The Memorandum targets all federal funds recipients, however. As the U.S. Department of Justice’s (“DOJ”) first comprehensive statement regarding its current interpretation of what the federal antidiscrimination laws require, the Memorandum warrants careful consideration as federal funds recipients consider risk mitigation, including in relation to DOJ’s recent pronouncements regarding enforcement of the federal antidiscrimination laws through the False Claims Act.1
A particularly notable aspect of the Memorandum is its discussion regarding facially neutral criteria.
Whether and under what circumstances a federal funds recipient may use facially neutral criteria is a developing area of the law that the U.S. Supreme Court has yet to address squarely in the wake of its decision in Students for Fair Admissions, Inc. v. Harvard (“SFFA”). Although the SFFA Court warned that “‘what cannot be done directly cannot be done indirectly[,]’” it did not expound in any detail on pursuit of diversity through race-neutral means. The Biden-era U.S. Department of Education Office for Civil Rights (“OCR”) and DOJ issued guidance suggesting that it was permissible for institutions to seek a diverse student body and that SFFA did not “prohibit admissions models and strategies that do not consider an individual’s race, such as those that offer admission to students based on attendance at certain secondary or post-secondary institutions or based on other race-neutral criteria.”2
The Memorandum takes a different tack. It asserts that facially neutral criteria violate federal nondiscrimination laws if designed or applied with the intent to advantage or disadvantage individuals based on protected characteristics or to serve as proxies for protected characteristics. Key statements to that effect are:
The Memorandum underscores this interpretation with examples of “potentially unlawful proxies” that seem to have higher education institutions in mind, including with respect to admissions and faculty hiring:
Many of the “non-binding” “best practices” set forth in the Memorandum address the above position regarding facially neutral criteria and seem to have been crafted with higher education in mind:
The U.S. Department of Education took a similar position regarding facially neutral criteria in its currently court-enjoined February 14, 2025, Dear Colleague Letter regarding discrimination on the basis of race, color, or national origin.
In addition to the topic of “prohibited use of proxies for protected characteristics,” the Memorandum also addresses the following topics:
For each topic, the Memorandum sets forth a position on what is unlawful with respect to that topic and provides examples of unlawful practices related to that topic. Numerous examples of unlawful practices are set in the context of universities and colleges. For example, the Memorandum characterizes the following practices as unlawful:
Although many of the Memorandum’s examples of purportedly unlawful practices are set in the higher education context, the Memorandum instructs all entities that receive federal financial assistance to review carefully the guidance to ensure all programs comply with federal antidiscrimination laws. Organizations will want to examine carefully those examples of unlawful practices as they also provide insights into potentially defensible practices, and the “recommendations on best practices” provide suggestions for risk mitigation strategies.
The Memorandum asserts that compelling persons to share intimate spaces with the opposite sex and allowing men to compete in women’s athletic competitions would “typically” be unlawful. The Memorandum takes the position that federally funded institutions that allow males, including those who self-identify as women, to access single-sex spaces designed for females—such as bathrooms, showers, locker rooms, or dormitories—undermine the privacy, safety, and equal opportunity of women and girls. The Memorandum also takes the position that permitting males to compete in women’s athletic event “almost invariably denies women equal opportunity by eroding competitive fairness.” The Memorandum seeks to tie its position to Title IX by explaining that these sorts of practices “can violate Title IX by denying women access to the full scope of sex-based protections in education.” According to the Memorandum: “To ensure compliance with federal law and to safeguard the rights of women and girls, organizations should affirm sex-based boundaries rooted in biological differences.”
As we have addressed in other advisories, the DOJ has launched numerous initiatives focused on the False Claims Act (“FCA”) and compliance with federal civil rights laws.3 It is clear that the government intends to devote resources to investigating and potentially pursuing FCA claims borne out of DEI-related initiatives and other conduct that it believes runs afoul of civil rights laws, whether instigated by private citizens or government personnel.
The Memorandum serves to warn federal funds recipients regarding the sorts of policies and practices that the federal government will view as worthy of scrutiny and/or as violative of federal antidiscrimination laws. That said, the Memorandum does not have the force of law and is instead DOJ’s interpretation of the law. Institutions should review the Memorandum closely and consult with experienced counsel in evaluating their policies and practices.
For assistance navigating this rapidly-evolving landscape, please reach out to the authors identified below or any Hogan Lovells lawyer with whom you work.
Authored by Joel Buckman, Stephanie Gold, George Ingham, Michelle Roberts Gonzales, and Madelyn Wessel.
References
1 The principles discussed in the Memorandum are applicable in large part to entities that do not receive federal funds. For example, the Memorandum interprets and applies Title VII of the Civil Rights Act of 1964. Title VII applies to an employer regardless of whether it receives federal financial assistance. Courts also generally interpret Title VII similarly to the other civil rights laws discussed in the Memorandum, including Title VI and Title IX, as well as the Equal Protection Clause of the U.S. Constitution. Organizations that do not receive federal financial assistance should consider the Memorandum in relation to their practices, as it signals the government's view on certain programs and practices, and DOJ has the authority to sue public employers for violations of Title VII.
2 U.S. Department of Education and U.S. Department of Justice, Questions and Answers Regarding the Supreme Court's Decision in Students for Fair Admissions, Inc., v. Harvard College and University of North Carolina, at page 6 (Aug. 14, 2023) (emphasis added).
3 See, e.g., our advisory “DOJ Civil Division Assistant Attorney General’s first day memorandum sets out FCA enforcement priorities aligned with Trump administration objectives” (June 23, 2025); and our advisory “Deputy Attorney General launches Civil Rights Fraud Initiative to pursue FCA cases based on alleged discrimination” (May 22, 2025).