What's Happening?
The U.S. Department of Justice has rescinded the disparate-impact rule, aligning with President Trump's executive order titled 'Restoring Equality of Opportunity and Meritocracy.' This executive order, signed on April 28, 2025, aims to eliminate the use
of disparate-impact liability in all contexts to avoid violating the Constitution and federal civil rights laws. The rescinded rule previously prohibited the use of criteria or methods that resulted in discrimination based on race, color, or national origin. The DOJ's action removes several provisions that have been in place for over 50 years, affecting how federal financial assistance recipients are held accountable for discrimination. The rule change was issued without notice and comment, citing an exception under the Administrative Procedure Act.
Why It's Important?
The rollback of the disparate-impact rule could have far-reaching implications for civil rights enforcement in the U.S. By eliminating liability for policies that have a disproportionate adverse impact, the change may reduce protections against discrimination in federally funded programs. This could affect various sectors, including education, housing, and employment, where disparate-impact claims have been used to address systemic inequalities. Critics argue that the move undermines efforts to combat discrimination, while supporters claim it restores fairness by focusing on intentional discrimination. The decision may lead to legal challenges and debates over the balance between civil rights protections and regulatory burdens.
What's Next?
The rescission of the disparate-impact rule is likely to face scrutiny from civil rights organizations and could result in legal challenges. Federal agencies may need to revise their guidelines and enforcement strategies to align with the new rule. Additionally, the change may prompt states to consider their own disparate-impact regulations to fill the gap left by the federal rollback. The ongoing debate over the rule's impact on civil rights protections will likely continue, with potential implications for future policy decisions and legislative actions.
