Removal of Unconstitutional Preferences Based on Race and Sex in Response to Court Ruling

Document 2025-12877 is a Final Rule published by the Department of Agriculture in the Federal Register on July 10, 2025, with an effective date of July 10, 2025. 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. View the original at https://www.federalregister.gov/documents/2025/07/10/2025-12877/removal-of-unconstitutional-preferences-based-on-race-and-sex-in-response-to-court-ruling.

No. Document 2025-12877 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.