DOJ Eliminates Disparate-Impact Liability Under Trump Executive Order

The United States Department of Justice finalized a rule on December 10, 2025, eliminating disparate-impact liability from its Title VI regulations of the Civil Rights Act of 1964. This action implements an April 23 executive order from President Donald Trump and removes the authority to penalize recipients of federal funding—including schools, nonprofits, and government agencies—for neutral policies that result in disproportionate negative outcomes for specific groups.

Under the new rule, claimants must prove intentional discrimination to make a case actionable. Attorney General Pamela Bondi and other officials stated the move restores the constitutional principle of equal treatment and removes regulations from 1973 that were not part of the original 1964 Act. The DOJ clarified that while it will no longer pursue enforcement based on disparate-impact theories, statistical data on disparate outcomes can still be used to help prove intentional discrimination.

The decision is expected to lead the Equal Employment Opportunity Commission to drop the majority of lawsuits based on disparate-impact metrics. The rule change faces sharp criticism from the American Civil Liberties Union and over 200 former Civil Rights Division employees, who argue it dismantles essential safeguards against systemic and institutional bias. Critics also noted the rule was added to the Federal Register without the typical public notice and comment period.