President Donald Trump’s recent executive order, “Restoring Equality of Opportunity and Meritocracy,” have sparked significant concern among advocates for women, Black Americans, people with disabilities, and other marginalized communities. Critics warn that these policies risk reversing decades of progress in combating discrimination and promoting financial independence for historically excluded groups.

The executive order, signed April 23, 2025, directs federal agencies to eliminate or deprioritize enforcement of “disparate-impact liability”-a legal standard that allows the government to challenge policies that disproportionately harm protected groups, even without explicit discriminatory intent. This principle has been vital in enforcing the Equal Credit Opportunity Act (ECOA), Fair Housing Act, and other civil rights laws, helping women, Black Americans, and others secure fair access to credit, housing, and employment.

Disparate-impact liability is a legal theory that allows for claims of discrimination when a neutral policy or practice disproportionately affects members of a protected group, even without evidence of discriminatory intent. It has been used for decades to challenge practices in hiring, housing, education, and lending that result in statistical disparities among racial, gender, or other protected groups.

The Trump administration argues that disparate-impact liability forces employers and institutions to consider race and engage in “racial balancing” to avoid legal exposure, thereby undermining meritocracy and the principle of treating individuals as individuals, not as representatives of a group.

The order sets in motion a process for reviewing and amending federal regulations, with agencies required to report on steps taken to eliminate disparate-impact liability. While the executive order does not itself change existing laws-such as the Civil Rights Act or the Equal Credit Opportunity Act-its implementation could reshape how those laws are enforced at the federal level.

• Women: The rollback of disparate-impact enforcement could lead to increased barriers to credit, business loans, and mortgages for women, especially single mothers and women of color, threatening their financial autonomy and independence.
• Black Americans: Black men and women, who have historically faced redlining, loan denials, and predatory lending, could see diminished government efforts to ensure equal access to credit, housing, and employment opportunities. The loss of federal backing may also reduce the ability to identify and address systemic discrimination.
• People with Disabilities: Project 2025 proposes deep cuts to Medicaid and housing support, and would end the use of disparate-impact theory in enforcing the Fair Housing Act. This would make it harder for people with disabilities to challenge discriminatory practices, access affordable housing, and live independently in the community.
• Other Marginalized Groups: The executive order and Project 2025 also threaten protections for other groups, including older adults, immigrants, and LGBTQ+ individuals, by deprioritizing enforcement of anti-discrimination statutes across federal programs.