🌾USDA Ends Race and Sex-Based Preferences in Assistance Programs
Removal of Unconstitutional Preferences Based on Race and Sex in Response to Court Ruling
Summary
The U.S. Department of Agriculture (USDA) has independently determined that it will no longer employ the race- and sex-based "socially disadvantaged" designation to provide increased benefits based on race and sex in the programs at issue in this regulation. The USDA has faced a long history of litigation stemming from allegations of discrimination in the administration of its farm loan and benefit programs. However, over the past several decades, USDA has undertaken substantial efforts to redress past injustices, culminating in comprehensive settlements, institutional reforms, and compensatory frameworks. These actions collectively support the conclusion that past discrimination has been sufficiently addressed and that further race- and sex-based remedies are no longer necessary or legally justified under current circumstances.
Agencies
- Agriculture Department
- N/A
- Rural Housing Service
- Rural Utilities Service
- Rural Business-Cooperative Service
- Commodity Credit Corporation
- Farm Service Agency
- Natural Resources Conservation Service
- Federal Crop Insurance Corporation
Business Impact
$$$ - High
The regulation eliminates race- and sex-based preferences in USDA programs, which impacts compliance and financial assistance programs for businesses in agriculture and rural services. This change prompts business owners to reassess eligibility and operational strategies in light of merit-based frameworks.