On April 23, 2025, President Trump issued an Executive Order targeted at reducing the focus on disparate impact liability claims under the Fair Housing Act. The new EO, titled “Restoring Equality of Opportunity & Meritocracy,” states the goal of eliminating the use of Federal Agency resources in investigating and/or prosecuting disparate impact-based claims in all legal contexts to the greatest extent possible, to avoid violating the Constitution, federal civil rights laws, and fundamental American principles.
The Executive Order (EO) emphasizes reducing the enforcement of rules that impose disparate-impact liability. It instructs the Attorney General, in coordination with agency leaders, to identify all existing regulations, guidance, rules, or orders that impose disparate-impact liability. They must report on the steps for amending or repealing these within 30 days. This review will also include state laws and decisions that impose disparate-impact liability.
Furthermore, the EO requires the following:
- Revocation of Previous Approvals and Regulations: The Executive Order revokes prior presidential approvals of regulations from the Department of Justice under Title VI of the Civil Rights Act of 1964, specifically concerning disparate-impact liability. The specific regulatory provisions outlined in 28 C.F.R. § 42.104 are identified for revocation.
- Review of Pending Matters: Within 45 days, the Attorney General and the Chair of the Equal Employment Opportunity Commission (EEOC) must evaluate all pending investigations, civil lawsuits, and ongoing matters related to federal civil rights laws that involve disparate impact liability. They should take appropriate actions in accordance with the new policy. The Executive Order also directs other agencies, including the Department of Housing and Urban Development and the Consumer Financial Protection Bureau, to review pending cases under the Fair Housing Act, the Equal Credit Opportunity Act, and related statutes. Review of Existing Judgments: The EO directs all agencies to evaluate and take appropriate action within 90 days on existing consent judgments and permanent injunctions that rely on disparate-impact theories.
- Future Agency Actions and Guidance: The Executive Order instructs the Attorney General to assess whether federal law overrides state laws that impose disparate-impact liability and to take necessary actions based on that assessment. Additionally, the Executive Order assigns the Attorney General and the Chair of the EEOC to provide guidance to employers on how to promote equal access to employment, especially for applicants who do not possess a college degree.
This executive order requires significant changes in how the federal government enforces civil rights laws, especially concerning employment, housing, and credit. For more information, visit https://natlawreview.com/article/changes-civil-rights-enforcement-new-executive-order-eliminates-disparate-impact
To learn more about Disparate Impact click here: https://loebsackbrownlee.com/disparate-impact-algorithmic-bias-and-fair-housing/.
