Public schools nationwide have funneled over $123 million in taxpayer money to diversity, equity, and inclusion consultants since 2021, while the Department of Justice launches investigations into these potentially discriminatory programs.
At a Glance
- 41 DEI consultant groups received over $123 million from 303 school districts across 40 states since 2021
- Amplify was the largest beneficiary, receiving over $70.5 million for curriculum and professional development
- The DOJ has established a “Civil Rights Fraud Section” to investigate federal fund recipients’ compliance with non-discrimination laws
- Critics argue these expensive DEI initiatives often lack measurable academic benefits while advancing ideological agendas
- Many DEI groups are now rebranding, removing DEI terminology and using alternative terms like “belonging”
Massive DEI Spending in Public Education Revealed
A comprehensive investigation by Defending Education has uncovered that 41 diversity, equity, and inclusion (DEI) consultant groups have received more than $123 million from public education funds since 2021.
The spending involves 303 school districts and public education entities spread across 40 states, raising serious questions about the allocation of taxpayer resources. The largest beneficiary, Amplify, collected over $70.5 million primarily for providing curriculum materials and professional development services to various school districts throughout the country.
— ⅃AƎЯDIGS (@REAL_DIGS) April 16, 2025
Erika Sanzi from Defending Education has strongly criticized these partnerships, describing them as a “total racket that makes schools worse.” She points out that many of these initiatives lack age-appropriate curricula and fail to demonstrate measurable benefits for students.
The watchdog group’s findings come at a time when DEI programs are facing increased scrutiny at both state and federal levels for their content, cost, and actual impact on educational outcomes.
Department of Justice Launches DEI Investigation Initiative
The Department of Justice has established a new “Civil Rights Fraud Section” specifically designed to investigate federal fund recipients for compliance with non-discrimination laws. This initiative will focus particularly on DEI programs that may involve racial preferences or other potentially discriminatory practices. The DOJ has made its position clear, stating that “the days of using federal funds to further discrimination are over,” signaling a significant shift in federal oversight of these programs.
This initiative will leverage the False Claims Act (FCA), which prohibits knowingly providing false information to obtain federal payments. Harvard University has already become one of the first targets of this investigation, with the DOJ examining admission policies that potentially defrauded the federal government. Harvard has called the investigation “abusive and retaliatory.” The DOJ is expected to conduct more investigations, particularly targeting organizations with significant assets or endowments.
DEI Contractors Under Scrutiny
While Amplify received the largest share of public education DEI funds, other consulting groups have also benefited substantially. Adjusted Equity Solutions, which is associated with the Culturally Responsive School Leadership Institute, received over a million dollars for services that include challenging “whiteness” and conducting “equity audits” in schools. Amplify has defended its programs, claiming they focus on making education more equitable without pushing political agendas.
Critics note that many DEI groups have begun rebranding themselves, removing DEI references from their websites and adopting alternative terminology like “belonging.” This shift follows increased scrutiny and the Trump Department of Education’s warning to states that they risk losing federal funding if they maintain certain DEI policies. Sanzi argues that these groups often use agreeable terms like “empathy” and “belonging” while still pushing ideological agendas that may not be appropriate for public education settings.
Legal Implications and Future Outlook
The DOJ’s initiative involves collaboration between various divisions and federal agencies, as well as partnerships with state attorneys general and local law enforcement for information sharing and coordinated enforcement actions. The department has explicitly encouraged individuals with knowledge of discrimination by federal funding recipients to file qui tam actions under the False Claims Act, which could potentially lead to significant financial penalties for non-compliant organizations.
For educational institutions and other organizations receiving federal funding, proving non-engagement in illegal discrimination presents significant challenges. Legal experts recommend conducting thorough reviews of DEI programs and policies to ensure compliance with non-discrimination laws. While non-discrimination monitoring remains legal and is recommended as a defense against FCA investigations, the shifting landscape suggests that many schools may reconsider their DEI investments in light of increased federal scrutiny.
