Seattle University faces federal civil rights complaint over Costco-sponsored DEI scholarships

The Equal Protection Project is asking the US Department of Education’s Office for Civil Rights to begin an investigation into the school’s use of race- and sex-based criteria in its scholarships, calling them a violation of federal law.

Among the initiatives named in the complaint is the Costco Scholarship Fund, a program supported by both Seattle University and the University of Washington, which prioritizes applicants described as “underrepresented students of color.” William A. Jacobson, founder of the Equal Protection Project, said, “Costco has created a program for ‘underrepresented students of color’ but allows others to participate. We call on Costco to make clear both in its program and in its partnerships with schools like SU that discrimination on the basis of race, color, or national origin is prohibited.”

Costco responded by defending the legality of the program, claiming that the company considers multiple factors in scholarship decisions, including academic performance, community service, and socioeconomic background, not just race.

According to the complaint, Seattle University’s Sinegal Fellowship, a graduate-level award specifically limited to prior recipients of the Costco scholarship, is described by the university as supporting “underrepresented minority Costco scholars.”

The Justice Mary I. Yu Endowed Scholarship reportedly gives preference to “underrepresented students at Seattle University School of Law, especially women of color,” and the Women of Seattle University Endowed Scholarship is geared towards “underrepresented student populations, especially women,” but includes academic requirements.

Jacobson said the scholarships violate Titles VI and IX of the Civil Rights Act, Washington State law, and Seattle University’s anti-discrimination policies. He said, “Creating educational opportunities based on race, color, national origin, or sex violates civil rights law. We are asking SU to live up to the law and its own rules.”

He added, “Aggressive DEI programming must never be permitted to cross the line into unlawful discrimination. This line, unfortunately, appears to have been breached at SU,” he said. “It is time for higher education everywhere to focus on the inherent worth and dignity of every student rather than categorizing students based on identity groups.”

The University of Washington (UW) has also been slapped with civil rights complaints. Last year, the Brandeis Center for Human Rights Under Law accused UW of failing to protect Jewish students from rampant antisemitism. In the wake of those allegations, the university implemented budget cuts, a hiring freeze, and faced mounting scrutiny from federal authorities.

UW is currently under investigation by the Department of Education as part of a wider crackdown on antisemitism on U.S. campuses. The school was recently given a “D” grade by the Anti-Defamation League (ADL) for its response to antisemitic incidents after the October 7 Hamas attacks.

While several universities settled civil rights complaints during the final months of the Biden administration, critics argue that many did so without facing real consequences. Now, with a more aggressive federal stance under the Trump administration, legal experts say universities may face heightened accountability over DEI-driven policies seen as violating civil rights protections.