On September 16, 2025, HUD circulated a memorandum that was directed to the agency’s Office of Fair Housing and Equal Opportunity (FHEO) headquarters staff, Office of Enforcement staff, regional directors and field supervisors and detailed immediate changes to the agency’s enforcement priorities. The memo instructs the agency’s staff to focus all its resources on cases with the strongest evidence of intentional discrimination and rescinds all guidance that is not in alignment with this directive. Furthermore, it states that a “priority memorandum” for all fair housing cases will be reviewed by the Trump-appointed head of FHEO or his designee to determine whether further action is warranted.
This memo appears to implement the President’s Executive Order 14281, Restoring Equality of Opportunity and Meritocracy, which seeks to eliminate the use of disparate impact liability in all contexts across the federal government. This is a significant departure from prior administrations’ position on disparate impact claims under the Fair Housing Act. At issue for housing providers is that facially neutral and common business practices, such as occupancy standards, criminal background screening and policies related to Section 8 rental subsidies, could trigger disparate impact claims despite no intent to discriminate against a federally protected class.
This announcement builds on the success of the National Apartment Association’s (NAA) regulatory advocacy with the Trump Administration. The rental housing industry strongly supports fair housing laws, but has long raised concerns that an overly expansive view of disparate impact theory could create liability for basic housing development and operational practices.
Earlier this year, NAA urged HUD to rescind prior administrations’ rulemakings and reinstate the 2020 Disparate Impact Rule, which aligned the rule with Supreme Court and other legal action as well as included important safeguards for housing providers against litigation stemming from legitimate, nondiscriminatory policies. HUD reported to the Executive Office of the President that HUD's Implementation of the Fair Housing Act's Disparate Impact Standard (FR-6540) is a priority for the agency’s Spring 2025 Regulatory Plan.