DJT Orders Rollback of Equal Opportunity

Donald Trump signed an executive order to undo equal opportunity access to credit and financial services, as well as undo protection against other forms of discrimination.

Although he cannot rescind the Equal Credit Opportunity Act that was enacted by Congress, his order attacks federal enforcement against disparate-impact liability, a concept which has been crucial to implementation of the Act: racism, sexism, or some other form of discrimination can occur without explicit intent. The ECOA seeks to protect people from discrimination based on race, sex, color, age, or ability in regard to their access to credit and financial services.

Prior to ECOA, women frequently could only get loans or credit cards if a male relative or spouse co-signed for them. Mortgages could be unavailable or only available more costly terms in non-white neighborhoods, a practice called redlining. These are just a couple of examples of what the ECOA prohibits.

Enforcement is currently under the Consumer Financial Protection Bureau. Trump has slashed CFPB and put one of his loyalists in charge of it, which will hamstring enforcement of ECOA.

Trump’s order also aims to force reevaluation of judgements based around sex discrimination. For cases in progress, his order calls for reevaluation in regard to Titles VII, and VIII of the Civil Rights Act of 1964. The order explicitly says the “Attorney General shall initiate appropriate action to repeal or amend the implementing regulations for Title VI of the Civil Rights Act of 1964.”

Title VI blocks federal funding of programs that discriminate based on race, color, or national origin. Title VII prohibits employment discrimination. Title VIII is also called the Fair Housing Act which prohibits housing discrimination.

Consequences could involve unraveling school integration orders and myriad other longstanding enforcement actions.

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Click here to read the executive order.