Did the Justice Department require universities to defund organizations based on racial or gender identity?

While the Trump administration’s Department of Justice deemed numerous DEI practices discriminatory, it did not issue a blanket ban on demographic-based groups.

A July 29, 2025, DOJ memo outlined non-binding “best practices” for federally-funded entities to comply with anti-discrimination laws to avoid risking losing federal funding.

The memo identified race-exclusive scholarships and programs using criteria such as “lived experience” or “cultural competence” as potentially discriminatory if they function as proxies for race or ethnicity rather than objective qualifications.

It recommended instead evaluating applicants uniformly based on measurable qualifications like language proficiency, academic credentials or financial hardship.

UM System President Mun Choi said an internal investigation found the university was not complying with Title VI, which prohibits discrimination based on race, color and national origin in federally funded programs.

The University of Missouri announced April 3 that it would stop funding multicultural umbrella organizations, citing the DOJ guidance.