The DOJ Civil Rights Division Opens Probe into Indiana University Scholarships

The U.S. Department of Justice (DOJ) Civil Rights Division has launched a formal compliance review into Indiana University's (IU) scholarship programs, examining whether they discriminate based on protected characteristics such as race, ethnicity, national origin, or sex. This investigation, detailed in a letter dated December 12, 2025, sent to IU President Pamela Whitten, marks a significant escalation in federal scrutiny of higher education financial aid practices amid ongoing debates over diversity, equity, and inclusion (DEI) initiatives.

Indiana University, a flagship public institution with nine campuses serving over 97,000 students, administers thousands of scholarships annually. The probe focuses on ensuring these awards align with Title VI of the Civil Rights Act of 1964, which prohibits discrimination in federally funded programs. As IU receives substantial federal support, any violations could jeopardize funding streams critical for research and student aid.

Scope of the DOJ's Data Demands and Preservation Order

The DOJ letter outlines an extensive request for information, requiring IU to submit data within 45 days—by January 26, 2026. Key demands include:

• A demographic breakdown of all IU students across campuses.
• Total scholarships awarded and dollar amounts, segmented by sex, race, ethnicity, and national origin.
• Evaluation and selection criteria for every scholarship program.
• Policies, agreements, processes, audits, and surveys related to eligibility considering protected classes.
• All communications, including emails, texts, and notes, on scholarship administration.
• Records of nondiscrimination training and any student/staff complaints or appeals.

IU's Office of the Vice President and General Counsel promptly issued a preservation notice to faculty and staff, prohibiting deletion or alteration of records. The university is compiling two years of data from all campuses, collaborating with its Information Policy Office for electronic records.

Origins in Civil Rights Complaints from Advocacy Groups

The probe traces back to a July 15, 2024, civil rights complaint filed by the Equal Protection Project (EPP) with the U.S. Department of Education's Office for Civil Rights (OCR). EPP alleged IU maintained at least 19 race-based scholarships, labeling them unconstitutional post the Supreme Court's Students for Fair Admissions v. Harvard ruling, which ended race-conscious admissions.

Earlier complaints in April 2025 from groups like Defending Ed echoed these concerns, prompting IU to review its programs. The DOJ's involvement reflects a shift under the Trump administration, issuing guidance on July 30, 2025, clarifying that DEI-labeled discrimination violates federal law.

Spotlight on Specific Scholarships with Race Preferences

EPP's complaint highlighted scholarships explicitly preferring or restricting based on race/ethnicity:

• Rao and Anita Uppaluri Underrepresented Minority Scholarship (Kelley School): For underrepresented minorities with financial need and 2.7 GPA.
• Daniel and Maureen Aron Diversity Finance Scholarship: Preference for African American students in investment fields.
• Biology Tah-Tah Self Achievement Award (IU Indianapolis): For African-American females pursuing medicine.
• Murieta S. Covington Memorial Scholarship (McKinney Law): Preference for African American students with dependents.
• Others like Steven Bretthauser Business Diversity Scholarship and McKinney School of Law Diversity Scholarship prioritize "students of color" or "underrepresented populations."

These criteria, per EPP, fail strict scrutiny, lacking narrow tailoring to compelling interests beyond general diversity goals.

Indiana University's Proactive Review and Pauses

In fall 2025, IU conducted a comprehensive legal review of scholarships following federal signals. The university paused awarding certain programs pending clarity, notifying donors via letter. Officials emphasized commitment to compliance while supporting access to education. No public comment on the DOJ probe status, but internal efforts focus on voluntary resolution to avoid funding cuts.Explore IU scholarship opportunities remain available for merit- and need-based aid.

Post-SFFA Legal Framework Shaping the Investigation

The 2023 Supreme Court decision invalidated race as a factor in admissions, extending to scholarships via Title VI precedents like Gratz v. Bollinger. DOJ's 2025 guidance warns federal recipients against race-based aid, promising investigations. This probe exemplifies enforcement, potentially leading to remedies like program suspension or DOJ referral.

Step-by-step compliance process: (1) Self-audit criteria; (2) Shift to race-neutral factors (e.g., income, first-gen); (3) Document alternatives; (4) Train staff on nondiscrimination.

Stakeholder Reactions: From Advocacy to Faculty Concerns

Conservative groups like EPP hail the probe as ending "reverse discrimination." IU Faculty Council passed resolutions on related federal actions, urging caution. Students express mixed views: some worry about lost support for underrepresented peers, others support merit focus. Donors to affected scholarships face uncertainty, prompting uneasy truces with IU Foundation.Career advice for navigating compliance changes.

Wave of Similar Probes Across U.S. Universities

IU joins George Mason University (July 2025 DOJ probe), with OCR securing agreements from 31 colleges ending DEI partnerships. Over 50 institutions face DEI-related investigations, including scholarships at unspecified schools. Broader Trump-era actions target antisemitism (60+ unis, including IU) and DACA-exclusive aid.

Impacts on Students, Funding, and Campus Equity Efforts

Prospective students may see shifts to socioeconomic proxies for aid. IU's $500M+ annual scholarships could redirect, affecting retention. Risks: funding loss (e.g., Pell Grants, research), lawsuits. Benefits: race-neutral aid promotes true equality. Statistics: IU awards ~$200M scholarships yearly; underrepresented minorities comprise 20% undergraduates.Inside Higher Ed on ongoing crackdowns.

Future Outlook: Compliance Strategies and Higher Ed Trends

Universities like IU are adopting race-neutral alternatives: holistic reviews emphasizing adversity indices. Experts predict more probes, voluntary resolutions. Actionable insights: Admins audit now; students apply broadly; donors specify neutral intent. IU likely resolves amicably, modeling for peers. Explore higher ed jobs in compliance roles amid shifts.

Photo by Cole Parsons on Unsplash

Navigating Scholarships in a Post-DEI Era

This probe underscores evolving federal priorities. IU's handling offers lessons: transparency, swift review, stakeholder engagement. For students, pivot to merit/need aid via platforms like AcademicJobs scholarships. Faculty rate professors at Rate My Professor; seek career advice. Post a job at Higher Ed Jobs or University Jobs. Balanced compliance ensures equitable access.