US Justice Department probes College of William & Mary over potential aid discrimination

The Justice Department is launching an investigation into the College of William & Mary over whether some of its scholarships and financial aid are discriminatory, continuing the Trump administration’s campaign to reshape US higher education.

The probe stretches across multiple schools at William & Mary, including the Law School and the School of Education. The Williamsburg, Virginia-based university has until Sept 8 to supply requested materials and comply with agency investigators, according to documents reviewed by Bloomberg.

Assistant Attorney General Harmeet Dhillon said the department opened the investigation after conducting an audit of the college’s financial aid programmes. She said William & Mary’s scholarship policies appeared to be in defiance of the Supreme Court’s 2023 decision banning racial preferences in admissions.

“I won’t say they’re being evasive,” Dhillon said on Aug 17 in an interview at Bloomberg’s office in Washington. “They’re openly continuing to offer scholarships and opportunities restricted to graduates of historically Black colleges and universities. That’s illegal. They’re not hiding it.”

One of the oldest public colleges in the US, William & Mary is the department’s latest target in a stream of civil rights probes aimed at top universities.

Earlier in August a DOJ investigation found that admissions practices at Duke University School of Law had discriminated against applicants based on race; in May it announced a similar finding against the Yale School of Medicine.

Legacy of slavery

Though the scholarships in question are not limited to applicants of a specific race, the agency pointed to language that gives “preference” or “top consideration” to “diverse people and perspectives”. Some of them were established specifically to combat the legacy of slavery and racial discrimination against African Americans at William & Mary, which was established in the 1690s.

“The department will not turn a blind eye to race-based preferences, however they are packaged or portrayed by universities,” according to a letter by Dhillon.

In a statement, William & Mary said it is “committed to equitable learning environments across our campus and complying with all state and federal laws”. The college said it does not comment on pending legal matters.

If the agency finds that William & Mary did violate civil rights law, they will first seek a voluntary settlement with the university. Without one, the consequences for the college could be severe, including terminating its students’ eligibility for federal financial aid.

Pressure campaign

“If there is a finding that is sustained and the institution doesn’t immediately remedy it, cutting off their federal funding is absolutely the outcome,” Dhillon said in the interview. “That will happen to some institutions if they refuse to change.”

The Justice Department has taken on an increasingly prominent role in the Trump administration’s college pressure campaign in 2026, and has wielded civil rights probes as its main tool to force sweeping changes at campuses.

Dhillon described a group of schools that have been working proactively with the Justice Department, showing how they are voluntarily complying with the law over admissions.

“The University of North Carolina is one that came to the table pre-emptively and said, “We do a lot of research. We’re happy to show you our homework,’” Dhillon said. She added that many university presidents have approached her to try to resolve any potential conflicts out of the limelight, without naming them.

Along with Harvard University, UNC was a defendant in the case addressed by the Supreme Court in 2023. Separately, the Department of Defense said in July that it approved the University of North Carolina at Chapel Hill for a fellowship for senior military officers. Secretary Pete Hegseth had previously dropped partnerships with elite universities.

The investigation into William & Mary further expands the DOJ’s civil rights efforts beyond admissions offices and into scholarships and financial aid. In June, the agency launched a probe into Harvard, alleging that it granted financial aid preferences to Chinese students thanks to the influence of foreign donors.

Dhillon said the DOJ is still involved in the Trump administration’s negotiations with Harvard over a number of issues, from antisemitism to international students, which have dragged on for over a year. She said there are roadblocks to a settlement, but that talks are ongoing.

“We have had discussions with Harvard regarding a global resolution,” she said. “Certainly, there is a willingness to move on.”

William & Mary is at least the third Virginia college to come under fire from the DOJ since President Donald Trump returned to office.

In 2025, Dhillon launched investigations into allegedly discriminatory DEI practices at the University of Virginia that led to the resignation of then president Jim Ryan and, eventually, a settlement with the school. The department also said that George Mason University had violated civil rights law in its hiring practices. BLOOMBERG