Dive Brief:
- The American Civil Liberties Union of Indiana sued Indiana State University leaders on Monday over their decision to stop funding student workers at a local LGBTQ+ nonprofit.
- The public university terminated funding for The Pride Center on Aug. 15, citing guidance from the U.S. Department of Justice on discrimination and federal funding, according to the civil rights group.
- The lawsuit, filed on behalf of the center, argues that the move violated the First Amendment and asked a federal court to require the university to fund the student positions while the case is being decided.
Dive Insight:
The Pride Center is "operated almost entirely by volunteers" but receives support from Indiana State student workers. Their pay is covered in part by federal work study funds and grants administered by the university and in part by the center, according to the lawsuit.
In a July memo to all federal agencies, the DOJ reiterated that federal funding recipients must not "engage in unlawful discrimination," singling out diversity, equity and inclusion efforts as potential offenders. The memo primarily focused on initiatives for specific racial or ethnic groups and listed a university's "'safe space' or lounge exclusively for students of a specific racial or ethnic group" or similarly focused "DEl-focused workshop series" as examples of violations.
Indiana State's office of the Vice President for University Engagement cited this memo when it cut off the flow of federal work study dollars and local grants to the Pride Center for fiscal 2025-26.
“Consistent with this Guidance from the DOJ, Indiana State may not require applicants to hold a particular identity-based viewpoint,” an Indiana State official told the center in an email cited in the complaint.
Four of the university's students worked part time at the center as of Aug. 8, according to the lawsuit.
The university did not immediately respond to questions Tuesday.
The Pride Center is open to all, and ACLU of Indiana alleged the university "erroneously" interpreted the DOJ's non-binding guidance as mandating the termination of the funds.
“Given the fact that the Pride Center does not discriminate, there is no justification for ISU’s actions," Ken Falk, legal director at ACLU of Indiana, said in a statement Monday. "The decision to defund this program is clearly based on the Pride Center’s support and advocacy for the LGBTQ+ community, all of which is supported by the First Amendment.”
In its July memo, the DOJ also issued "practical recommendations to minimize the risk of violations" and said programs and resources should be open to all qualified individuals, regardless of race, sex or other protected characteristics.
Analysis from one law firm found that the nine-page document left "many unanswered questions" about how federal funding recipients should respond.
