On December 10, 2025, the U.S. Department of Justice (DOJ) issued a final rule removing liability for disparate impact discrimination under Title VI of the Civil Rights Act of 1964. This rule applies to recipients of federal funding, including state and local government agencies, nonprofits, schools, and government contractors.

• The U.S. Department of Justice recently published a final rule eliminating liability for disparate impact discrimination for organizations that receive federal money.
• Intentional discrimination, including disparate treatment based on race, color, or national origin, remains unlawful under Title VI.
• The rule took effect immediately.

Title VI of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, or national origin in any program or activity that receives federal funding. Title VI prohibits employment discrimination only if employment is a primary objective of the federal investment, and the alleged discriminatory employment practices negatively affect the delivery of services to the program’s ultimate beneficiaries, such as students, patients, or those served by government agencies.

Disparate impact generally refers to when a neutral policy or practice disproportionately and negatively affects a legally protected group. Disparate impact does not require plaintiffs to prove an intent to discriminate existed. The original rule and regulations allowed agencies to consider federal-funding recipients’ policies and...

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