Restoring Equality of Opportunity and Meritocracy Executive Order #14281 Date Issued: April 23, 2025 Topic: Civil Rights
WHAT DOES THIS EXECUTIVE ORDER DO? This executive order eliminates disparate impact liability in the federal government, a legal doctrine that prohibits organizations from adopting policies that would disproportionately harm marginalized groups. This order repeals several provisions of the Civil Rights Act of 1964 and will alter the enforcement of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA). Congress originally passed the FHA and ECOA to prevent discrimination in housing and lending. The Department of Housing and Urban Development (HUD) and the Federal Trade Commission (FTC), which enforce the FHA and the ECOA respectively, have used disparate impact liability to hold mortgage companies and creditors accountable when they disproportionately harm members of protected classes. Without disparate impact liability, the agencies will now have to prove malicious intent in order to punish bad faith actors, which requires a much higher burden of proof and will lead to more instances of unchecked discrimination.
1