ShareOn April 23, 2025, the president issued an executive order entitled "Restoring Equality of Opportunity and Meritocracy." It declares the policy of the United States "to eliminate the use of disparate impact liability in all contexts to the maximum degree possible to avoid violating the Constitution, Federal civil rights laws, and basic American ideals."
The order directs federal agencies to de-prioritize enforcement of all statutes and regulations to the extent they include disparate impact liability. The order explicitly refers to laws and regulations protecting civil rights in employment, but it does not limit itself to the employment context.
The order also directs the attorney general to determine whether federal authorities preempt state laws, regulations, policies, or practices that impose disparate impact liability based on a federally protected characteristic and to "take appropriate measures consistent with the policy of this order."
The U.S. Supreme Court recognized disparate impact as a theory of liability under the Fair Housing Act in its 2015 decision, Texas Dept. of Housing and Community Affairs v. Inclusive Communities Project, Inc.
White House Executive Order: Restoring Equality of Opportunity and Meritocracy
