CA, US & World
Trump administration reviews corporate diversity initiatives under federal fraud law
The Trump administration is reviewing diversity-related initiatives at major U.S. companies using a federal civil law that allows the government to recover money lost through fraud, according to reporting from The Wall Street Journal.
The Justice Department has reportedly sent requests for documents and information to several large corporations, including Google and Verizon, seeking details about their workplace diversity programs. The inquiries are being conducted under the False Claims Act, a law traditionally used to pursue cases involving fraud against the federal government.
Sources cited by the Journal say the review spans multiple industries, including automotive, pharmaceutical, defense, and utilities. Some companies involved in the process have met in person with Justice Department officials to discuss their programs and compliance.
The scope of the inquiry suggests a broad examination of how diversity, equity, and inclusion initiatives intersect with federal contracting and funding requirements. It remains unclear whether the reviews will result in formal enforcement actions or changes to corporate policies.
Since taking office in January, the president has moved to end federal diversity, equity, and inclusion programs and has publicly opposed similar initiatives in the private sector and in education. The administration has framed its actions as part of a broader effort to ensure compliance with federal law and prevent misuse of government funds.
Companies contacted for documents have not publicly commented on the specifics of the requests, and the Justice Department has not detailed how long the review is expected to last or how many companies may ultimately be affected.
The development adds to ongoing national debate over workplace diversity programs, federal oversight, and the role of government in regulating corporate policies.
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By: NBC Palm Springs
December 29, 2025
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