DOJ's Data Privacy Push and Shift on DEI: New Enforcement Priorities Reshape Business Landscape

Listeners, the Department of Justice is making headlines this week with the announcement of sweeping new enforcement priorities and initiatives, touching everything from data privacy to corporate accountability. At the top of the news: the DOJ’s Civil Division has issued a directive to target what it calls “illegal” diversity, equity, and inclusion—or DEI—programs in the private sector, especially those of federal contractors and entities receiving federal funds. This marks a sharp shift, with the administration signaling a presumption that most DEI-related policies may run afoul of anti-discrimination laws. The DOJ is prepared to use the False Claims Act as a key enforcement tool, signaling a potentially significant increase in litigation and regulatory oversight for businesses engaged in DEI initiatives. The department’s memo, referencing President Trump’s executive order on “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” puts organizations on notice that affirmative litigation is a central enforcement strategy moving forward. Meanwhile, July 8 marks the start of enforcement for the DOJ’s 2025 Final Rule on bulk data transfers, a major national security measure. This rule, rooted in an executive order from February 2024, prohibits and restricts transactions involving Americans’ sensitive personal data with countries deemed national security threats. Deputy Attorney General Todd Blanche underscored the urgency: “If you’re a foreign adversary, why would you go through the trouble of complicated cyber intrusions and theft to get Americans’ data when you can just buy it on the open market or force a company under your jurisdiction to give you access? The Data Security Program makes getting that data a lot harder.” This rule requires U.S. businesses—especially those handling bulk consumer or government data—to overhaul compliance processes immediately, and state and local governments are expected to shore up their own data-sharing safeguards. In the area of health care fraud and government programs, the DOJ, alongside the Department of Health and Human Services, has relaunched its False Claims Act Working Group. The renewal underscores a continued commitment to pursuing fraud, waste, and abuse in government programs, focusing on protecting taxpayer dollars in sectors like Medicare and Medicaid. Enforcement priorities also cover defense spending and financial fraud, with a directive to avoid unnecessarily burdening American businesses. According to the latest policy memo, three guiding principles—focus, fairness, and efficiency—will govern prosecutors’ approach, with a clear warning that overzealous enforcement that stifles legitimate business risk-taking should be avoided. Businesses and organizations should brace for heightened scrutiny of compliance programs and consider reviewing their DEI and data governance strategies. State and local governments will see increased federal involvement, especially in areas of public dat This content was created in partnership and with the help of Artificial Intelligence AI.