June 7, 2025

Seattle University facing federal probe over Costco-backed DEI scholarships

Seattle University’s diversity push just hit a federal roadblock. The Equal Protection Project has filed a civil rights complaint, alleging the university’s scholarships, including one tied to Costco, illegally favor students based on race and sex. This isn’t a polite suggestion—it’s a demand for the Department of Education to investigate.

The Daily Wire reported that the complaint zeros in on programs like the Costco Scholarship Fund, which partners with Seattle University and the University of Washington to support “underrepresented students of color.”

It also flags the Sinegal Fellowship and two other scholarships for prioritizing race and sex over merit. In one sentence: Seattle University’s DEI-driven scholarships are accused of breaking federal civil rights laws by discriminating against certain students.

The Equal Protection Project isn’t new to this fight. They previously targeted the University of Rhode Island for 51 DEI scholarships that allegedly discriminated against white and male students, sparking a federal investigation. Now, they’re turning their sights on Seattle University’s similar practices.

Costco Scholarship Under Fire

The Costco Scholarship Fund, a flagship program, is at the heart of the complaint. It evaluates applicants on academic record, community service, and status as part of “underserved” groups, including minority students and those in foster care. But the complaint argues its focus on “underrepresented students of color” crosses a legal line.

“Costco has created a program for ‘underrepresented students of color’ but allows others to participate,” said William A. Jacobson, founder of the Equal Protection Project.

That’s a weak defense when the program’s language screams racial preference. Costco insists it’s legally compliant, but federal investigators may disagree.

The Sinegal Fellowship, another program cited, builds on the Costco Scholarship. It’s exclusively for Costco Fund scholars pursuing advanced degrees at Seattle University, with a clear preference for underrepresented minorities. This kind of double-dipping on race-based criteria is exactly what the complaint calls discriminatory.

The Justice Mary I. Yu Endowed Scholarship at Seattle University’s School of Law also faces scrutiny.

It prioritizes underrepresented students, especially women of color, in its financial aid decisions. The complaint argues this violates federal laws prohibiting sex and race discrimination.

Then there’s the Women of Seattle University Endowed Scholarship. Available to students meeting a GPA threshold, it explicitly targets underrepresented groups, with a focus on women. Sounds noble, but the Equal Protection Project says it’s illegal if it excludes others based on identity.

“Creating educational opportunities based on race, color, national origin, or sex violates Titles VI and IX of the Civil Rights Act,” Jacobson said.

He’s not wrong—federal law demands equal treatment, not special treatment. Seattle University’s silence on the complaint only fuels suspicion.

DEI’s Legal Tightrope

The Equal Protection Project accuses Seattle University of advancing a DEI agenda that’s more about ideology than fairness.

“Aggressive DEI programming must never be permitted to cross the line into unlawful discrimination,” Jacobson warned. Yet, that line appears blurry at best in Seattle’s scholarship policies.

Jacobson’s group doesn’t just want an investigation—they’re demanding systemic change. “We are asking SU to live up to the law and its own rules, and to remove the discriminatory eligibility barriers it has erected,” he said. It’s a polite way of saying: stop breaking the law.

Seattle University’s refusal to comment doesn’t inspire confidence. If their scholarships are as fair as they claim, why not defend them publicly? The silence suggests they’re bracing for a federal smackdown.

The complaint isn’t just about Seattle University—it’s a shot across the bow of higher education’s DEI obsession. Jacobson’s group argues that categorizing students by identity groups undermines the “inherent worth and dignity of every student.” That’s a zinger that hits hard in an era of identity politics.

“The Equal Protection Project calls on the Department of Education to require the senior administration of SU to uphold nondiscrimination standards,” Jacobson said. It’s a reasonable ask: follow the law, not the woke playbook. Universities everywhere should take note.

Written By:
Benjamin Clark

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