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DOJ Moves to Challenge Illinois Nonprofit Board Disclosure Law
Wednesday, March 12, 2025

The U.S. Department of Justice (DOJ) has been granted judicial leave to intervene in the American Alliance for Equal Rights’ (AAER) suit against the State of Illinois challenging the state’s diversity, equity, and inclusion (DEI) law requiring nonprofit organizations to make certain demographic data public on their websites. The intervention comes as President Donald Trump’s anti-DEI agenda takes shape.

Quick Hits

  • An activist group has asked a federal district court to strike down an Illinois law requiring the disclosure of nonprofit organizations’ board demographics.
  • The DOJ has intervened in the case, claiming that the law violates the Fourteenth Amendment.
  • The intervention is part of the DOJ’s effort to eliminate DEI practices nationwide.

On March 11, 2025, the U.S. District for the Northern District of Illinois granted the DOJ’s motion to intervene in American Alliance for Equal Rights v. Bennett. The plaintiff, American Alliance for Equal Rights (AAER), is a nonprofit group that has opposed a number of diversity programs nationwide.

Here, the AAER is challenging an Illinois law that requires qualifying nonprofits to disclose the demographic makeup of their directors and officers on their websites. The demographic categories include race, ethnicity, gender, disability status, veteran status, sexual orientation, and gender identity. AAER alleges that the statute violates the Fourteenth Amendment of the U.S. Constitution by encouraging organizations to discriminate based on race and the First Amendment of the U.S. Constitution by compelling organizations to speak about demographic issues that they otherwise would not discuss.

On March 4, 2025, the DOJ moved to intervene in the case. The government cited Students for Fair Admissions, Inc. v. Harvard College (SFFA), arguing that the Illinois law violates the Equal Protection clause on account of race. SFFA is the 2023 Supreme Court of the United States decision eliminating affirmative action in higher education. In a press release, the DOJ called the intervention “an early step toward eradicating illegal race and sex preferences across the government.” U.S. Attorney General Pamela Bondi emphasized the department’s intention to intervene in cases where a state “encourages DEI instead of merit.” Although certain portions of President Trump’s anti-DEI executive orders have been preliminarily enjoined, the move shows the DOJ continues to execute the administration’s policy goals in other ways.

Next Steps

Although the case is narrow in scope, the outcome may shed light on the Trump administration’s views on the legality of demographic reporting in other contexts and how the SFFA decision may be applied outside of higher education.

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