Donald Trump's Department of Justice is getting in on the push to force diversity programs out of American businesses with a "novel" interpretation of an 1863 fraud law, but an analysis from MS NOW found that this new "bullying" tactic amounts to "a complete waste of resources."
According to a recent report from the Wall Street Journal, the DOJ is now attempting to use the 1863 False Claims Act to go after companies that receive government money through federal contracts to make sure they do not have "diversity, equity and inclusion" programs in place. The report specifically singled out Verizon and Google's parent company, Alphabet, as some of the initial targets.
Trump issued an executive order in March calling for the end of all DEI initiatives in the federal government. His administration has also been aggressive in targeting such programs at private businesses with any means available to it, and major companies like Amazon, Target and Paramount opted to roll them back in response.
Examining the new legal tactic at the heart of this push, MS NOW's Hayes Brown explained that the False Claims Act was first introduced to take on defense contractors attempting to bilk the Union government for more money during the Civil War. Recently, it's mostly been used to go after healthcare companies suspected of overcharging the federal government.
This new intended use of the law by the Trump administration, holding companies liable and potentially leveling fines against them for having DEI programs in place while taking government money, would be a "novel" interpretation, Brown wrote, and one that "hasn’t been tested in court and could easily fall flat." Still, he argued, "the mere fact that DOJ is pursuing this route is chilling in and of itself."
Brown also noted that, by utilizing this novel approach to the False Claims Act, the Trump administration is shifting responsibility for its anti-DEI crusade onto the DOJ from the department's civil rights division to its fraud division, which has been ordered to "aggressively" pursue the matter. Aside from being "clear politicization of the legal system," Brown also argued that it represents "a major waste of resources" for the DOJ, which has recently "been struggling with its workload" under Attorney General Pam Bondi's remaking of the department.
"Even if the cases go nowhere, or don’t result in charges, businesses with less money than Google may step up efforts to roll back their diversity programs," Brown concluded. "MAGA pours a lot of resources into achieving its goals, but it prefers that its targets for bullying comply in advance."
