A coalition of organizations led by the National Association of Diversity Officers in Higher Education is challenging a federal executive order requiring federal contractors, including colleges, to agree they will not engage in any “racially discriminatory DEI activities,” with legal filings now expanding. The policy is tied to the risk of contract cancellation, making compliance a major operational and governance issue for higher education. In parallel, the U.S. Department of Education is moving some civil rights investigation and enforcement duties to the U.S. Department of Justice under an interagency agreement. Officials framed it as a transfer of responsibilities rather than a change to core obligations, but institutions face new procedural uncertainty. The enforcement and litigation backdrop is intensifying as student-loan administration continues to evolve and as the Department publicly reorganizes enforcement functions ahead of upcoming higher-education compliance timelines.